How to evaluate your Competitors | 5 Steps to conduct your Competitive Analysis
To get your business on top of the list, you need to build successful business strategies. You have to come up with unique products and services that stand out from your competitors. Therefore, it is important to evaluate your competitors by conducting a competitor analysis.
Competitive analysis helps you identify your competitive brand’s strengths and weaknesses and allows you to play better than them. With the help of competitive analysis, you can strategize a better marketing plan. A competitive analysis also requires a SWOT analysis.
A SWOT analysis is an assortment of your company’s strengths, weaknesses, opportunities, and threats. A SWOT analysis’s primary aim is to help companies gain a complete understanding of all the variables involved in making a business decision. Therefore, this analysis will broaden your vision, and you can plan better than your competitor.
To understand how you will compete with your competitors, you need to first identify them. Then gather in-depth information about them. After doing comprehensive research about your competitor’s ins and outs, you need to then take a competitive advantage, express that advantage in your brand, and generate revenues. Here are some quick steps that will help you evaluate your competitors and enable you design better strategies.
1. Find your Competitors
A competitor is someone who targets the same segments of the market as you with a similar product. For example, without competing, an e-commerce company may operate next to another company that sells products. How is this possible? Companies will target numerous clients: one could represent multinationals, while others could market to small businesses. So this is how competition between businesses prolongs.
You need to understand when you are stepping into any business, you need to identify your competitors first. Some tips for identification of competitors are;
- Conduct Market Research.
- Solicit Customer Feedback.
- Speak to Millennial Audience.
- Always keep an eye on Social Platforms.
2. Gather Information
There are excellent and inexpensive resources for checking up on your competitors available either online and offline. You need to constantly monitor what your competitor’s overall business is all about. Look deep into the strategies and campaigns they use to target their audience. Gather information about things like there;
- Market reputation
- Branding and positioning
After knowing all this, you must be able to understand your position now. It is time for you to start thinking about how you are going to satisfy customers. What are your competitors lacking? What sort of innovation do you need to innovate to target customers? I am sure you are making up your mind at this point. Continue reading!
3. SWOT Analysis
As you have already compiled your strengths and weaknesses, now is the time to look for your competitor’s SWOT analysis. Preparing a written evaluation of your competitors will allow you to compare their performance with your own. You can list your competitors and write out their respective strengths and weaknesses. Are they popular because of their location? Visibility? The quality of their staff? Are their prices too high? Or does their product lack a key feature that’s demanded by your target customers? Take the information from that analysis and plan better for your own business on how to enter your market.
4. Understand your Competitors
Knowing your competitors personally can benefit you a lot. In reality, taking the first step can sometimes lead to a partnership that benefits both sides. Whereas, it’s not usual for two businesses to fight at one side and then collaborate at other times. It’s an exception, but if you can hit that target, you can win the race.
For instance, if your competitor, to whom you have found common grounds with, doesn’t represent a specific market niche, he may refer clients to you. But this can be possible only if your competitor knows you, as well as, trust you, and likes you.
5. Determine your Competitive Advantage
Evaluate the competitive environment to understand your competitive advantage. It may be lower prices or discounts that draw new customers but note that the competition will imitate this form of strategy and might not be sustainable in the long run. It is always a smart idea to take advantage of a weakness in the competition. But is it sustainable? Ideally, a competitive advantage gives you great strength and helps you cater to the target customers.
These quick tips could help you a lot to evaluate your competitors once you apply them strategically. Never copy your competitors. Innovate, run, and win!