How to conduct a competitor analysis effectively?

Why is competitor analysis necessary?

Competitor analysis is a key part of a company’s strategic planning and business development. It helps companies understand market dynamics, identify competitors’ strengths and weaknesses, and find their own development opportunities. Without a clear understanding of competitors’ actions, it is difficult to make informed decisions that move the company forward.

Well-executed competitor analysis provides valuable information about market trends and customer behavior. This information can be turned into concrete actions that improve the company’s position in the market. Additionally, the analysis can reveal new business opportunities that have not been previously noticed, such as gaps in the market or underserved customer segments.

Competitor analysis is not just about examining the current situation, but it also provides tools to anticipate future changes and prepare for them. This is especially important in today’s rapidly changing business environment, where new innovations and technologies can quickly alter the market landscape.

What information should be collected about competitors?

The success of competitor analysis depends on collecting comprehensive and accurate information about competitors. One of the most critical pieces of information is the competitors’ product portfolio. What products or services do they offer? How do they differentiate themselves in the market? With this information, one can understand the opportunities and threats represented by the products or services offered by competitors.

Pricing strategies are another important part of competitor analysis. Understanding competitors’ price levels, discounts, and promotions helps set one’s own pricing to be competitive and attractive. This information is particularly important in market research, as it directly affects the company’s profitability and market share.

Marketing strategies and customer service practices also form a central part of the analysis. It is important to understand what marketing channels and messages competitors use and how they serve their customers. This information can help develop more effective marketing strategies and improve the customer experience.

How to choose the right competitors for analysis?

Selecting the right competitors for analysis is an essential step in the process. This can start by defining the market position in which the company competes. Is it a local, national, or international market? The choice of competitors is often based on their market position and how directly they compete with the company for the same customers.

The product range is another important factor in choosing competitors. It is worthwhile to select competitors for analysis whose products or services are similar or serve the same customer needs. This helps understand how one’s own offering stands out and where there may be room for innovation or improvement.

The customer base is also a factor to consider when choosing competitors. Competitors should be examined based on the customer segments they serve. This can reveal new opportunities to target one’s own marketing efforts or develop new products to meet customer needs more effectively.

How to use SWOT analysis in competitor analysis?

SWOT analysis is an effective tool in competitor analysis because it provides a clear structure for assessing competitors’ strengths, weaknesses, opportunities, and threats. With SWOT analysis, one can identify where competitors are strongest and where they have room for improvement. This information helps shape one’s B2B strategy.

Analyzing strengths helps identify what factors make a competitor successful and how the company can learn from these factors. This may relate to technology, brand, or customer service. Similarly, identifying weaknesses opens up opportunities to develop one’s offering so that it fills market gaps.

The assessment of opportunities and threats focuses on external factors, such as market trends and changes in legislation. Understanding these factors helps the company prepare for future changes and capitalize on new business opportunities before competitors.

How to analyze competitors’ marketing strategies?

Analyzing the effectiveness and innovativeness of competitors’ marketing strategies is important in order to develop one’s own marketing to be effective and distinctive. This can begin by examining what communication channels competitors use and what messages they convey to their target groups.

The analysis of marketing strategies can also include studying competitors’ branding strategies. How do competitors build and maintain their brand? What brand attributes and values do they emphasize? Understanding these factors can help develop one’s own brand and communication to be more attractive to target groups.

The assessment of innovativeness focuses on how competitors utilize new technologies and trends in their marketing. This may include the use of artificial intelligence and machine learning in marketing campaigns. By leveraging industry-leading technologies, as we at Meedius do, a company can gain a competitive advantage and improve the efficiency of its marketing.

Meedius has been for years the Nordic partner of the world-leading online media monitoring and social media listening platform Talkwalker/Hootsuite, which we offer as a comprehensive solution to our clients internationally.