What Is Competitive Analysis
A competitive analysis is an important part of the marketing plan of a company. With this evaluation, a company will be able to establish what makes the service or product unique – and therefore what qualities you act up so as to attract the target market.
When a company tries to assess the weaknesses and strengths of its past, present and prospective competitors, and then it’s said to be performing competitive analysis. This type of analysis could be done by evaluating and examining tactical management skills, key business skills, and marketing expertise of the competitors and documenting them in a Competitive Analysis Template.
Competitor analysis is known to be very important aspect in the development of a given company. It offers defensive and offensive ways to identify and find threats and opportunities. It also provides a broader and better ground in finding dangerous competitive weak points to a company.
Competitive Analysis Template Format
This template word has a high-level viewpoint at the services or goods or both that the competitors are providing to the target market, contrast and compare to the ones that your company is trying to offer.
Value
The analysis must contain the information about the price of your competitive services and products offer to a prospective customer.
Details
Don’t just state the obvious; get a bit deeper when it comes to the details of your service or product, in order for your client to feel more well-versed and thus persuaded to choose you rather than your competitors.
Cost
It’s a very essential part of assessment but shouldn’t be looked at separately, because by knowing the value and details of a product, you could better associate the cost with the competitors and set the services and products at its place to be.
How to Make a Competitive Analysis
Step1Make a List of Competitors
The analysis starts with a list of the name of your competitors. Usually, the list is contained of what the company considers to be its main competitors. But there might be other companies that ramblingly compete with yours, the ones that are offering services or products that the goals are the same with yours.
Step2Write Competitor Product Summary
Examine the products and services your competitors offer when it comes to value, features, and targets. How do your competitors introduce their services and products? How do they advertise them? Customer satisfaction surveys led by the trade press could help you enormously. How do consumers look at your competition? Know the answers to these questions and document them.
Step3Know the Strengths and Weaknesses of the Competitor
Be objective when putting the list of the strengths and weaknesses of your competitor. You’re not going to help your company if you are going to be bias toward your own services and product to cloud your verdict.
Step4Be Aware of the Strategies and Objectives of Your Competitor
Know how your competitors are marketing themselves with advertising and press releases. Annual and quarter reports provide a good amount of information, as well. Chances are you will need to perform a lot of footwork to beat your competitors.
Step5Market Outlook
The outlook part of your analysis might seem like prognosis, but it is really a matter of trends. Once you have done most of the research, you will have enough details to know what the outlook truly is.
More Tips for Competitive Analysis
1
Don’t just concentrate on the now
The competitive setting for your business in the present day might look overall different in the year, or even less. If the competitors are as determined as your company, there’s a chance that they can plan to launch many new products or expand in to new markets.
2
Make Competitor An Inspiration
A lot of big brands copy ideas from their competitors, but they make sure that they try their best to make it better. While totally stealing an idea is certainly not recommended, using it as an inspiration is not a bad thing.
3
Use the competition to be competitive
Although you have an excellent brand and offer better products, if the pricing is not reasonable, it won’t do correctly. Go into exactly what your competitors and compare yours.
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