What is Competitor Analysis?
Competitor Analysis is a marketing tool used by an organisation to identify its potential competitors and evaluate their marketing strategies to determine their strengths and weaknesses.
Analysis of current and budding competitors is a key approach for an organisation to thrive in the marketing field. A full recognition of your competition is vital for formulating your company’s future plans.
A company’s growth rely on many factors – Market condition, Customer’s demand and satisfaction, competitor’s plans and strategies, by predicting your contender’s reaction patterns to new products in the market, etc. So proper analysis of your rival’s performances can help you to gauge its growth pattern and also its shortcomings.
There are about 4 steps in competitor analysis:
1) Know the competition:
To prosper in any field, a company has to face tough competition from its competitors every moment and in every respect. So it is always better to have a sound knowledge about them. You should have a gross idea about each and every aspect of a competitor viz. How many competitors are there, who they are, what are their products, what are their strengths and weaknesses, how the are operating, their market value, their success rate over the years, are the customer satisfied with their products, if not, why. This is the first step of Competitor analysis.
2) Product Demand:
Rise in demand of products can cause steep competition between two companies, manufacturing the same product. The demand can be seasonal, monthly or even yearly depending on the type of product and its sale. So each and every company is competing with each other all the time to fulfil the customers’ demands. Based on the products, competition can be of 2 types – Direct and Indirect. Two or more companies offering the same services and products are said to be in direct competition. Indirect competitors are the ones who are offering similar products or services to the same target market.
3) Customer Satisfaction:
You know that customer is the first priority for an organisation. The main aim of a company should be to satisfy its customers by fulfilling what they desire. So at first, you have to do some survey work and market research about the needs and demands of customers. Simultaneously you have to be stay informed about your contender’s marketing style, role of its products in customer satisfaction. If the customers are not fond of your products/services and they are using your competitor’s products/services, then your market value will decrease.
4) Strategic Planning and Its Execution:
You should plan your business strategy after taking into consideration the competitors you have to deal with. You should plan different strategies to take on different rival companies, but your aim should be fixed i.e. to beat them in the long run. Click here free Website Competitor Analysis
You should execute the strategies which are best very effectively. There is no extra reward if you give full effort in analyzing the competition and lose, but if you fail in implementing the plan, then it would be a great loss for your company.
