Top 5 Principles of Good Competitor Analysis
December 23, 2021
Good competitor analysis has several principles that should be applied. Before you hire an agency to carry out competitor analysis, ensure the following principles to ensure all aspects of the competition are captured. It is good to carry out competitor analysis because it will form the basis for decision-making to avoid losing customers. Some of the principles applied in the competitor analysis are:
- Identify Your Competitors
The first step involves knowing the competitors before formulating a strategy to analyze them. Identifying the competitors is crucial to coming up with the right steps to address different challenges when dealing with them.
- Know Who the Competitors are Targeting
You should know the areas of focus in their marketing strategies. For example, get to know the channels they use to attract customers so that you can improve. If they use social media, you will be better prepared to focus on the efforts and compete effectively.
- Know Your Competitive Features?
You should know your strengths from where you can come up with measures to make them work to your advantage. For example, there are some areas where you may be performing more than your competitors. In such a case, you should put more effort into avoiding cases where the competitors will overtake you.
- Where are the Competitors Successful?
There are some areas where the competitors are very successful. You should know such areas and work towards beating them. The analysis can involve assessing big data and checking out different campaigns they employ to remain in business. The main focus of the analysis is to come up with effective measures to beat the competition.
- Determine Where Value can be Added
After you have analyzed the competition, you need to know where you can add value to your products or services to beat the competition. When you manage to add value, it will be easy to attract more customers and beat the competition in the process.
How to Write a Competitive Analysis & What Goes Into a Competitive Analysis
There are several steps you need to take when writing a competitive analysis. Here are some of the factors to consider and details to include in your competitor analysis process:
Know who your competitors are. It is necessary to know them and then develop strategies to beat them. You will not do a competitor analysis if you do not know your competitors’ businesses. They include companies in the same niche.
Check out the competitor sales tactics from where you can make an informed decision to beat them. For example, if they sell most of their products online, then look for ways of attracting the customers they target in their sales. Look at the type of products the competitor sells and their pricing and shipping costs. There are several prices involved in making a sale. Check out all the steps to know where the competitors may be beating you.
