Whether your company is large or small, competitive analysis is an essential part of growing your business and keeping an eye on your competitors. But what is competitive analysis?
Competitive analysis is a process through which you identify and research the competitors in your industry to better understand their products, services, and marketing strategies. Getting to know your competitors through competitive analysis will help you discover where your company fits in the market and hopefully, increase sales and business growth. Here’s how.
Know Your Strengths and Weaknesses
Identifying your unique strengths and weaknesses is a key part of conducting a competitive analysis. Your strengths set you apart from your competitors and determine how you position yourself in the market. Communicating these strengths to your audience will help potential customers understand why your product or service is better than your competitors’.
While knowing your strengths is an important part of marketing, knowing your weaknesses is just as important to business growth and success. Understanding where you might fall short in comparison to your competitors can help you identify areas of your business that might need improvement.
Understand Your Competitors
Competitive analysis also enables you to investigate your competitors’ strengths and weaknesses. Knowing what your competitors are doing well helps you to better understand industry trends and ensure that you’re going above and beyond in providing stellar products and services to your customers.
Additionally, identifying your competitors’ areas of weakness can help you tap into untapped opportunities in your specific industry and provide a type of product or service that’s missing from the marketplace.
When you start to research your competitors, look at companies that are larger and smaller than yours. Understanding the ins and outs of well-established companies can give you ideas and goals for growth, while studying smaller, newer businesses will tell you which entities might become serious competitors in the future.
Set Goals For Growth
Conducting a competitive analysis provides you with both immediate and long-term market information. Ultimately, it helps you determine your unique position in the marketplace, and once you have that information, you can develop a marketing messaging strategy that blows your competition out of the water all while helping you plan the long-term growth of your business. Knowing your competitors inside and out allows you to set goals for future growth.
Competitive analysis isn’t just for new businesses. It’s a process that you can use over and over again to revisit and reinvent your marketing strategies to ensure you’re always one step ahead of the competition.
Want help conducting a competitive analysis? Don’t hesitate to reach out.