Competitive analysis is the process of researching and identifying your competitors so you can cover all their strategies. This helps you to decide the strengths and weaknesses of them compared to you. By analyzing the competitor market, you can create a unique value proposition. Your UVP is a brief statement of the benefits that your product offer, and how the product offer solution to customers. Without competitive analysis, you won’t develop your strategy. Here are the questions that you should ask during competitive analysis.
Who are your Competitors?
The first thing that you have to do is analyze and understand your competitors in the market. If you want to build your strategy efficiently, then you should have deep knowledge of your competitors. It is also important to consider the competitors even if they have less market share. If you miss any of them, it might down your strategies. Fewer competitors and substitutes are also taken into evaluation. If they aren’t the direct competitors to you but could be in the future.
What are their strengths and weakness?
Once you want to evaluate your competitors, you should consider their strengths and weakness. First, you should know well about the strengths and weaknesses of your company. Before you start your business, it’s important to know what makes yours unique and how well competitors match up. Find out where the strengths of each company lie so that people will want their product or service over others. By evaluating your competitors, you can see how you grow well against them. You have to ask yourself that which is your competitive advantage and where do they have a competitor advantage. With this, you can make yourself unique from your competitors.
What are the competitors and threats within a given market or industry?
Though the strengths and weaknesses are internal but the company’s threats and opportunities are external. In the market or industry, weakness and strength may differ for the company but the threats and opportunities won’t change. You should try to influence your strengths and take advantage of the competitor’s weaknesses. On the other hand, competitors will try to show your weakness so it will signify your threats. Apart from that, you have to look at the wide factors around your business.
What are the characteristics of your competitors’ ideal customers and your ideal customers?
The ideal customer profile is a speculative description of the customer that will provide the benefit from your product. The customers want to produce the successful sales, evangelists, and retention rate of your brand. You have to research the types of customers that are close to your competitors.