Understanding  Competition Analysis

Competition analysis is a crucial process for businesses to identify their competitors and evaluate their strengths and weaknesses in order to create an effective market positioning strategy. By analyzing the competition, businesses can gain insights into the market, improve their products or services, and enhance their overall performance. In this post, we will dive into what competition analysis is all about and answer some of the most frequently asked questions surrounding it.

What is Competition Analysis?

Competition analysis is a framework that involves examining competitors to identify their strengths, weaknesses, opportunities and threats. This process helps businesses understand the competitive landscape, gain crucial insights into customer preferences, and create a market positioning strategy.

Why is Competition Analysis Important?

Competition analysis helps businesses make informed decisions about how to improve their products/services and increase their market share. It also aids in identifying potential risks and opportunities in the marketplace.

What are the Methods Used in Market Research in Competitive Analysis?

Some of the market research methods used in competition analysis include surveys, focus groups, interviews with industry experts, online research using tools like Google Trends or SEMrush, and data analysis from social media metrics.

What are the Techniques Used in Competitive Intelligence for Analyzing Competitors?

Competitive intelligence techniques involve gathering data on competitors through various sources like industry reports, news articles, financial statements, social media channels or online reviews. This information can be analyzed using SWOT analysis in marketing to identify competitor strengths, weaknesses, opportunities and threats.

How Can You Develop a Market Positioning Strategy Based on Competition Analysis?

Based on the information gathered from competition analysis, businesses can create a unique value proposition that differentiates them from their competitors. They can also determine which markets they should target and how to communicate effectively with potential customers.

What Are Some Common Mistakes Businesses Make When Conducting Competition Analysis?

One common mistake is assuming that all competitors operate under similar conditions. Another mistake is failing to gather sufficient data. Businesses should also avoid relying solely on their own knowledge and assumptions rather than seeking outside perspectives.

References

1. Kotler, P., & Keller, K. L. (2016). Marketing management. Pearson.

2. Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review Press.

3. Aaker, D. A., & McLoughlin, D. (2010). Strategic market management: Global perspectives. John Wiley & Sons.

4. Ghauri, P., & Gronhaug, K. (2005). Research methods in business studies: A practical guide (3rd ed.). Pearson Education.

5. Cadotte, E.R., et al.(1987). SWOT Analysis: Marketing Audit Approach.Lexington Books; 1 edition (December 1987)