Competitor analysis is crucial for business success and development. It is a report that detects and appraises your competitor’s strategies, which helps to identify their strength and vulnerabilities related to your products or services. Before you plunge into competitor’s analysis understand your major competitors. There are 3 kinds of competitors.
- Direct Competitors offer the same product or services and target the same customer base and market. The market share growth and profit goal are also similar.
- Indirect competitors offer the same products or services as direct competitors, but differ in end goals.
- Substitute competitors mean another company offering products to services to the same customer you are also catering to.
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How Competitive analysis is beneficial – why never underestimate it?
Tweak and develop a USP {unique selling proposition}
You gain an insight into how your brand is different from your competitors. You can define ‘Why to choose us’ accordingly. USP comparison between your brand and competitors helps potential customers identify the distinctiveness.
Offers a chance to enhance your brand
An increase in brand awareness will also escalate the customer’s expectations and needs. To identify that anticipation, you need to compare your customer reviews with your competitor’s customer reviews. This will allow tapping into the market gaps and fulfilling consumer needs and expectations as much as you can and gain a competitive edge.
Establish brand benchmark
Competitive analysis helps to unravel and scrutinize historical data, which tells how consumers view your and competitors’ brand. It offers a deep perception of your brand’s scaling and growth capabilities. Understanding your company’s past and present allows seeing the variances that need improvements or identifying opportunities that can help to increase business ROI.
Identify R&D disparities and recruitment
Competitor analysis is not just limited to customer reviews and customer-oriented content but you can gain awareness of who your competitors recruit. You can gain a large picture of future trends to expect from the competitor’s workplace culture and crucial factors like brand loyalty.
Uncover potential threats
Competitive analysis is dynamic. You can update and map challenges the market and your competitors are encountering. It will help to expect potential market fluctuations, contradicted market campaigns, and other threats.
How often to conduct competitor analysis?
Competitor analysis aims to stay ahead and for that, you have to stay updated about consumer needs [which change consistently] as well as keep up with the latest industry trends. Competitor analysis frequency differs. It is recommended to conduct anytime once in 3 to 12 months. It offers you some space to respond to the insights and benchmark your growth.
Never underestimate the significance of competitor analysis. It is a simple yet efficient marketing strategy to ensure you are in alignment with competitors’ efforts. You don’t get lost in the blast of your competition’s efforts. You get a chance to create and execute a marketing strategy that empowers your online visibility and reach.
