With the rampant increase of businesses whose operations are similar with one another, it is important for your business to ensure that it can withstand the challenges within the industry. Competitors can be threats to your business but you can also use them as your inspiration to develop your brand and improve what you can offer to your current and prospective customers. Having a competitive analysis can make it easier for you to come up with activities and strategies that can separate you from your competition. Always remember to not ignore the activities and other actions of your competitors as these can actually affect the interest of customers towards your business. If you want to create a competitive analysis and add it to the SWOT Analysis Worksheet Examples that your business use, we suggest you to look into the samples that you can download from this post first.
Competitive Analysis Template
Worksheet Competitor Analysis Template
E-Competitive Analysis Example
Industry and Competitor Analysis Example
Purpose of Competitive Analysis
Before pushing the activities that will allow you to study your competition and come up with a realistic analysis document, it is of utmost importance for you to first identify the reason on why you need to have a competitive analysis document and activity. Some of the purposes of competitive analysis that you should be knowledgeable of are as follows:
- To ensure that you can formulate effective marketing and sales strategies which can positively impact your operations
- To study the competitors and how their business decisions affect you as a business entity
- To identify means and ways on how you can gain competitive advantage
- To have references on how the trends in the market come and go which is a great way for you to prepare for market demands
- To gather details which you can study and assess so that you can have an idea on how to get a broader market share
- To know the difference of your operations when compared to your competitors as well as how you can further improve and develop to achieve corporate growth
- To forecast future trends in the industry particularly on the supplies that you need to prepare for and the activities that you need to implement to grab the attention of the market
Competitive Analysis Example
E-Commerce Competitor Analysis Example
What to Focus On When Making a Competitive Analysis
Unlike a market analysis – supply and demand which requires a particular set of data to be reviewed, there are different items that can be placed in your competitive analysis depending on the details which you think is essential for you to know about your competition. Some of the information that you can assess your competition for are listed below.
- The systems, platforms and medium by which the products and/or services of your competitors are distributed to the market
- The structure of the organization of the competition and how this can affect the effectiveness of their activities
- The strategies of your competitors related to the improvement of their branding and corporate image
- The sales of your competition within an operational year, a particular time period, or an activity
- The market share of your competitors and how this can be translated to actual profit and sales
- The condition of your competitors when it comes to partnerships, contractual relationships and the like
Basic Competitive Analysis Example
Competitor Analysis Example
Benefits of a Competitive Analysis
For some, a competitive analysis is not that necessary especially if a marketing plan has already been created beforehand without it. However, there are still some advantages that your business can get if the presence of a competitive analysis will be realized. More so, how you will use a SWOT Analysis to Build a Market Research Plan can help you within the entirety of the process. A few of the benefits that your business can experience if it will develop a thorough and fact-based competitive analysis are as follows:
- If you are aware of the activities of your competition, then you can make more sound decisions when it comes to developing your own marketing activities and strategies. Always keep in mind that it is not only internal factors that can affect the result of your activities and undertakings especially when it comes to marketing and sales.
- Being knowledgeable of your competition’s strategies can help your business to minimize the impacts that the success of your competition may get. Sharing the same market place can always lead to business comparison. Hence, it is important for your business to make sure that you will be as successful, or even better than your competition. Sustainability of your brand, image and operations should always be considered if you truly want to stay in the industry for a long period of time.
- An informative competitive analysis can help you improve your business strategies especially in relation to your product development, pricing strategies, market distribution, marketing and promotion activities as well as your branding and advertising.
Competitive Analysis Example
Business and Competitive Analysis Example
What Should be in Your Competitive Analysis?
A competitive analysis, like all the other analysis examples in Word; Excel or PDF used by companies and establishments, can help your business have an idea regarding what it is up to and up with. There are external factors like your competitors that can affect the way the market perceives your products and/or services. It is essential for you to have a competitive analysis so that you can properly identify the factors that can help you standout from other businesses within the same line of operations or the same industry. Here are the important items that you should include in your competitive analysis:
- A list of your direct and indirect competitors
- The objective, vision, goals and mission of your competitors and an assessment of how these are related to yours
- The nature of operations and offerings of your competitors
- The strengths of the competitors that can hinder you from tapping a larger market share
- The weaknesses of your competitors which you can use to promote an area of your business where those weaknesses do not exist
- The threats that you can possibly face as a business due to the presence of your competition
- The opportunities that you can get and immerse in depending on the activities of your competitors
- The strategies of your competitors that are deemed to be successful
- The possibilities that your future activities can provide your business with varying on how you think your competitors will react
Example of a Competitive Analysis
Comprehensive Competitor Analysis Example
Tips When Making a Competitive Analysis
A competitive analysis is as important as having a stakeholder analysis. Writing a competitive analysis can be easy if you are already aware on how you can prepare it effectively and efficiently. The way that you prepare the format, layout, content, and processes involved in competitive analysis is what can strengthen the foundation of the activity. Listed below are some of the tips that can be useful if you are already creating a competitive analysis.
- Know where, when and how you will get the data that you need. Some businesses use illegal ways to get information about their competitors – this is something that you should veer away from. Do not risk the credibility of your business just because you would like to study the strategies of your competitors.
- Get information from different mediums, platforms and activities. The more reliable sources you have, the more details you can get which can help you assess your competition even further. These sources include reports, recorded details from newspapers and magazines, the price list of your competition, promotions, campaigns and conferences.
- Come up with a complete and organized competitive analysis. If you can properly format and present your competitive analysis, then it will be easier for your stakeholders to understand its content. More so, it can help your business to properly separate information which should be given focus with from time to time.
- Have an objective comparison. It is important for you to be realistic when it comes to identifying the differences related to you and your competitor’s brand reach, market share, sales, and customer impact.
- Know how to analyze your competitors. Hence, you should already have an idea on how your competitive analysis will go. An objective will allow you to narrow down your researches based on what you really want to know about your competition.
As an essential part of the marketing and strategic planning activity of the business, a competitor analysis must be created carefully. All the factors that can affect the success of a competitor analysis must be considered to ensure that the output that you will have can truly positively affect the business and its future operations. Use our samples as your guide if you do not know how to develop your own competitor analysis from scratch.