By: Muhammad Arif – Account Manager of Fortune PR
The competitive analysis is a statement of the business strategy and its competition. Use these 6 steps to see how well will your business compete in the market:
- Map out all the head-to-head competitors
The first step in a competitor analysis is to identify the current and potential competition. You can see it from two points of view. The first it to look from a customer’s point of view, and second is to look from their business point of view. Sometimes you have to broaden your view to beyond head-to-head competitor. It is wise to explore also share of wallet competition or indirect competition, which offers similar product or services with value or price similar to your product or service.
- Find out their goals & objectives
Find out what they are trying to achieve, and map out what can threaten your business in the long run. Do they attempt to steal your clients? Do they attempt to copy your product and slightly alter it? See your industry through their eyes.
- List all their strategies & tactics
Look at their advertising, campaign promotion, and PR strategies. Advertising should help you quickly determine how a company positions itself, who it markets to, and what strategies it employs to reach potential customers.
- Assess their strengths & weaknesses
Your competitor’s strengths and weaknesses are usually based on the presence of assets they used to be able to compete in the market. You can identify the areas where they are most vulnerable.
- Estimate their reactivity
If you’re new in the game, find out how will your competitor’s respond when you enter the market? Will it change the game for them in the future?
- Plot out which one to “attack” & “avoid”
Research carefully and determine which competitor you should try to beat, and which one you should just avoid.
This research method will provide you with a distinct advantage in the long run, so you can develop the barriers to prevent competition from entering your market.
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