Definition:
Competitive Analysis, also known as Competitor Analysis,. is the process of researching competitors in an industry to better understand their business strategy. This information helps to know the strengths and weaknesses of the brand. compared to competitors, product development,. improving the brand strategy according to customer needs,. analyzing new trends in the industry, etc.
Importance:
competitive analysis has many functions:
- Knowing the strengths and weaknesses. by observing the competitors’ performance,. the weaknesses and strengths of the brand are determined,. and understanding the weaknesses and strengths. helps to understand the position of the brand. in the industry and identify opportunities for improvement.
- Market knowledge. Researching competitors helps to better understand the market. and identify existing gaps. Knowing the gaps in the market is effective. in understanding what new products will be successful in the market.
- Understanding the industry and being aware of the trends. competitive analysis helps the brand to align itself with the new trends in the industry and stay up-to-date.
- Determining growth goals. The analysis of established companies in the market plays an important role. in recognizing possible future challenges and opportunities in the market,. which is effective in planning and determining future goals.
How to do a competitive analysis:
Identifying competitors and their offers
Any company that offers a product. or service similar to a brand is considered a competitor. In general, there are 3 types of competition:
Direct Competition
Competitors who offer a similar product. to a brand’s target audience are in direct competition with the brand. Like two pizza chain restaurants.
Indirect competition
Competitors who offer a different product to meet the needs of the target market. have indirect competition with the brand. Like a hamburger restaurant and a pizza restaurant.
Replacement competition
includes competitors who offer a different product. or service in different categories. but still meet the needs of the target customers. It is difficult to distinguish this type of competition. Such as a pizza restaurant chain. and a brand offering packaged food in grocery stores.
Identifying competitors’ sales strategies
competitor’s brand communication channels with customers,. advertising channels, annual revenue, sales volume,. and competitor’s pricing strategy,. gives a perspective on the sales trend and how aggressive it is.
Examining competitors’ marketing methods
Examining the content of blogs, webinars, events, press releases, etc. is helpful for evaluating competitors’ marketing methods.
Analysis of content and marketing levels of competitors
Competitors’ marketing content (in terms of quality and quantity). and customer feedback are significant and should be investigated.
Examining how competitors advertise
Identifying keywords, the number of words broadcast., and the media chosen by competitors to provide advertisements., help to understand the advertising strategy of competitors. Paying attention to competitors’ social media platforms,. website SEO analysis, and SWOT analysis (strengths, weaknesses, opportunities, threats). or analysis of competitors’ strengths, weaknesses, opportunities., and threats are other significant steps to gather information for competitive analysis.
