A competitive analysis is a strategy that involves identifying significant competitors and researching their products, sales, and marketing tactics. This allows you to examine what your rivals do well and strive to integrate the best elements into your own product.
To make your analysis genuinely valuable, you must:
- Select the appropriate competitors to evaluate.
- Determine which elements of your competitors' businesses are worth investigating.
- Understand where to search for data.
- Recognize how you can apply the findings to strengthen your own business.
Here are a few additional advantages of competitor analysis:
- Assists you in determining your product's distinctive value proposition and what distinguishes it from rivals', which can inform future marketing efforts.
- Allows you to determine what your rival is doing successfully. This data is critical to remain relevant and to ensure that your product and marketing efforts surpass industry standards.
- Shows you where your rivals are falling short, allowing you to find areas of opportunity in the market and test out new, innovative marketing techniques they haven't taken advantage of.
- Learn what features are lacking in a competitor's product from customer reviews/complaints, and explore how you can add features to your own product to satisfy those demands.
- Provides you with a benchmark against which you can assess your own growth.
Example of a Competitor Analysis:
