Business Competitor Analysis: Everything You Need To Know
It can be difficult to know how to conduct a competitor analysis. It doesn’t have to be complicated to research the competition. These four tips will help you find out more about your competition.
Instead of pretending that your competitors don’t exist, it is important to get to know them well. Your business will be able to beat your competition if you are aware of its activities.
However, it is not enough to know what your competitors offer and how they charge. It is important to look into their strategies to position themselves at the top and see what could be affecting your chances of success.
Definition of competitive analysis
Creating a Competitive Analysis is a great way to find out more about your competitors. The competitive analysis provides a strategic context for identifying opportunities and threats. It is an assessment of your competitor’s strengths and weaknesses.
What is the importance of researching your competitors?
Competitive intelligence, also known as competitive research, is a type of strategic research that focuses on the analysis and collection of information about other companies.
Competitive research is legal. It is simply the gathering of information that is available in the public domain. This includes financial reports and reports prepared by specialized companies.
It is possible to search the Internet for the information you need, but Google has all the answers.
How to do a competitor analysis?
It is not as difficult as it seems. You can find everything you need about your competitors with just a bit of research. These are four tips to conduct a competitor analysis like a Digital Specialist.
Identify your top competitors.
First, identify your top competitors. Do not list every company in your industry. Keep it brief and focus on the top 10 competitors.
While you may be familiar with a few local business competitors, if not, a quick Google search will reveal their names. You can search for your keywords using the search bar. And do you know why is identifying keywords important for research?
Then, look up the companies that are on the first two pages.
Consider companies with similar sizes to yours when identifying rivals. Include basic information about each company and any memorable interactions with them.
Identify your target audience.
You need to identify your competitor’s target audience to better understand them. This includes who they are trying to attract, what type of customers they have, and how loyal they are.
Look at the ads of your competitors and see where they advertise. Also, visit their website and blog.
Ask questions such as:
- Are your ads gendered? Do they target women more than men?
- Do they target low-, medium, or high-income clients?
- What are your main messages in marketing campaigns?
If you identify your competitors’ target audience, you can either define your target audience or expand your target audience to reach as many consumers and customers as possible.
Analyze the content and online presence of your website.
Next, examine the online presence and content of your competitors. Analyzing the content and social media presence of your competitors will help you determine which strategies are most successful.
Do your research to find out the content that your competitors are creating. Are they publishing tutorials or long-form informational posts several times per week?
Are they more focused on video content? What kind of images and how often do they post to social media?
Knowing what content is being posted by your competitors will give you an insight into the areas where you should be putting more effort and resources.
Take into account your strengths and limitations.
You must also consider the strengths and weaknesses of your competitors. This step summarizes all of the information that you have uncovered during your research.
It will allow you to easily identify where your competitors excel in business and what you can do for them.
One smart way to find out what customers are saying about a company is to take a look at their online reviews. Look at the feedback from customers. Also, you can read both the positive and negative reviews and make use of it to your advantage.
You can make strategic improvements in your business to stay ahead of the competition when you understand how they compete.