5 things to consider when undertaking competitor analysis
Competitor Analysis: in this blog we’ll be looking at Five things to consider when doing your own competitor analysis.
It’s time to talk about the “C” word……. COMPETITION. How do you compare to your competition? It’s a crucial question because competition can either make or break your business. Competition can help you improve your products or services, expand your customer base, and increase your revenue. By not staying ahead of your competition, you risk losing customers and market share.
When investigating your competition always bear in mind you versus them on:-
- Price
- Quality
- Delivery
- After Sales
- Communication – clients and prospective clients
- Marketing – clients and prospects clients
Right, so let’s get a process going.
1) Identify your competition
Obvious it may be, but it’s essential to be clear on who your competition is. Put simply they are anyone who fulfils a need of the same customer base as you by offering a similar product or service to yours.
2) Analyze their strengths and weaknesses
Take a look at their marketing strategies, pricing, product offerings, customer service, and online presence. What they are doing well? What aren’t they doing so well?
Don’t forget to look at the opportunities and threats that your competitors present.
In terms of opportunities, where can you capitalise on their weakness to gain a competitive edge.
What are the threats or obstacles to your business from your competition and can they be turned into opportunities for you?
This SWOT analysis will help you identify areas where you can improve your own business. Don’t forget to review this on a regular basis.
3) Look for gaps in the market
Which areas of the market does your competitor not cover? This is an opportunity for you to offer a unique product or service that fills that gap. By identifying these gaps, you can differentiate your business and stand out from your competition. You might even use it to create the USP(S) for your Business.
4) Monitor their online presence
Check out their website, social media, customer reviews, even their email marketing – sign up to their newsletter or email marketing. What are they doing well and which areas need to be improved upon. What strategies could you implement in your business? Knowing what your competition is up to enables you stay one step ahead of them.
5) Focus on your own business
Don’t get so bogged down with your competitor analysis that you forget to focus on your business. It’s important to offer a unique value proposition to your customers and provide exceptional customer service. Focus on providing value to your customers and you’ll naturally stand out from your competition.
In summary doing competitor analysis is an essential part of running a successful business, and it can provide many benefits. Use it as a tool to help you grow your business, not as a threat to your success.
- It can help you identify areas where you can improve your business. For example, if your competition has a stronger online presence, you can focus on improving your website and social media strategy.
- By understanding what your competition is doing, you can identify trends and opportunities, helping you to make more informed business decisions and stay ahead of the competition.
- Identifying gaps in the market can help you differentiate your business and provide a unique value proposition to your customers. By filling these gaps, you can attract customers who are not being served by your competition.
- By monitoring what your competition is doing, you can identify if anything they are doing, or planning could threaten your business, or provide you with opportunities you hadn’t thought of until now.
- By identifying areas where your competition is doing well, you can learn from their best practices and implement them in your own business, and then consider what you can do that they don’t. . This can help you provide a better product or service to your customers and grow your business.
Undertaking competitor analysis can seem daunting and you may even be wondering whether it’s worth the effort. Remember competition can be good for business and it can motivate you to improve and innovate.
Need help doing your competitor analysis? Then Book a Free 1 Hour Coaching Session and let’s get you on the right track.
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