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If you’d like to get ahead of the other outfits in your space, you’ll want to know what they’re up to, and what their strengths and weaknesses are. And that’s what a competitive analysis is about—discovering the strong and weak points of your rivals, so you’re better able to get past them. This article tells you how to do so, in seven steps discussed below:
Identify Competitors
The first step in conducting a competitive analysis is to identify the competitors in your industry. You can do this by researching the market and finding companies that offer products or services similar to yours. It is important to include direct competitors, who offer products or services like your own, and indirect competitors, who sell substitutes or alternatives to your solutions.Determine the Competitive Landscape
After you have identified your competitors, you may go on to survey and plot out the competitive landscape. This involves analyzing the size, market share, and growth rate of each competitor. You can use the information you glean from this to identify your most significant competitors and decipher market trends.Analyze Competitor Products and Services
Next, analyze the products and services that each competitor offers. Thoroughly examine their unique selling points, pricing strategies, and marketing tactics. Probing these factors will help you identify aspects of your services or operations in which you can differentiate yourself from the competition.Sign up for the Connect Nigeria daily newsletter
Understand the Competitor’s Target Market
It is important to understand the target market of each competitor. There are good reasons to do this. One is the fact that their market is almost always the same one you’re aiming to reach. When you understand their market, you’ll have a greater chance of beating them there. Evaluating your competitor’s target market will involve analyzing the demographics, behaviours, and preferences of their customers.Evaluate the Competitor’s Strengths and Weaknesses
To gain a competitive advantage over your rivals, you’ll need to identify their strengths and weaknesses. This means noting their marketing strategies, distribution channels, customer service, and reputation. When you learn how these factors work, you can create a better business strategy that addresses your competitors’ weaknesses.Identify Opportunities and Threats
A crucial part of your competitive analysis is identifying opportunities and threats in the market. You will want to scrutinize industry trends, weigh new technologies, and understand changing consumer behaviour. Thorough knowledge of these phenomena allows you to develop new products and services that meet the evolving needs of the market.Create a Competitive Advantage
The final step in conducting a competitive analysis is to create a competitive advantage. This is basically about using the information you’ve gathered in the previous steps to develop a business strategy that differentiates your company from its competitors. This may involve creating new products or services, improving marketing strategies, or developing new distribution channels.Register to attend the CN Business Mixer
Final Words
If you want to achieve exceptional growth in your industry, you will need to understand your competitors. Your business will likely struggle if you don’t beat your competitors at the game of securing customer loyalty. By following the steps we’ve talked about here, you can gain a competitive advantage and succeed in your domain. Featured Image Source: LegalZoomDid you find this article useful? Contact us: editor@connectnigeria.com