Understanding and keeping proper track of your competitors is most important than ever to stay relevant and ahead of the game in this competitive landscape. That’s why competitor analysis is an integral part of developing growth strategies for all types of businesses and brands. This is something exceptionally useful to identify competitors, research their marketing tactics and assess the strengths and weaknesses of your company.
What is a Competitor Analysis?
A competitor analysis or competitive analysis is the process of recognizing competitors in your industry and evaluating their different marketing strategies. Insights and information gained through competitor analysis are used by brands to recognize their strengths and weaknesses relative to each competitor. As a result, they are better able to develop foolproof marketing and growth strategies to stand out.
A competitor or competitive analysis provides you with details about who your competitors are in the industry, what people say about them and what marketing strategies they are using to promote their products or services. This as a result helps you differentiate your brand by going the extra mile and staying ahead of industry trends that could impact the sales and growth of your business.
Benefits of Competitor Analysis
Going through the benefits of competitor analysis will help you understand how it can help you improve your strategic plans and make them more effective.
Identifying Market Trends
Conducting a competitor analysis is the best way to identify broad market trends and spot opportunities for differentiating your brand, products, and services from brands you are competing with. This helps you find and track trends in the marketplace that will allow you to improve your growth and marketing strategies. When you are aware of current trends in the market, you can develop plans and strategies in the best possible way to stay relevant and ahead of your competitors.
Better Product Development
Brands and companies in this rapidly developing marketplace are developing epic products to stand out from their competitors. In this highly competitive landscape, you as a brand can get the tremendous advantage of learning what your competitors are developing or improving to grow revenue. Knowing the strategies and plans of competitors can help you a lot in product development to combat competitors in terms of better pricing, functionality, and product quality. However, you should understand and conform to legal boundaries while trying to stay relevant in the industry.
Better Marketing & Communications
Marketing in this modern age is all about selling value and benefits instead of just products or services. Companies nowadays market the benefits of their products rather than features. This is where conducting a competitor analysis allows you to stay on top of your competitors’ marketing ideas and tactics so you can develop better marketing plans than theirs. The analysis also reveals what people think and say about your competitors’ brands so you can make necessary improvements to be prominent in the market.
Discover Potential Threats
Insights and information gained from competitive analysis enable you to understand the challenges the competitor brands are facing. This allows you to discover potential market challenges and threats ahead of time. And you can develop better plans to prevent all the hurdles on your way to enjoy better business growth and development.
Competitor analysis also provides data and information about companies who have tried to compete in this competitive marketplace and have failed. In this way, you can understand and avoid mistakes in business marketing and growth hacking to avoid suffering the same expensive pitfalls. By studying your competitors who have failed, you can effectively predict the potential issues and problems of time to make the necessary changes in your plans. This will reduce the chances of your failure in the race of competition.
There are several benefits of analyzing the brands and businesses that you are competing within the industry. A successfully conducted competitor analysis helps you improve product development, marketing strategies and customer experience to stay competent and relevant in this rapidly changing marketplace.