What is competitive analysis?
Definition of Competitive Analysis
Competitive analysis is a process that involves researching competitors in your industry to gain insights into the benefits and standard operating procedures in the industry space. Competitive analysis, the name itself, implies the process of examining your competitors to improve your organization.
The information synthesized from a competitive analysis can be used as a point of comparison to uncover your company’s strengths and weaknesses relative to the various competitors. It gives a way to improve your own company’s performance and evaluate the competitors’ strategies to uncover their shortcomings and strengths, setting a benchmark for yourself.
Advantages of Conducting a Competitive Analysis
An ongoing competitive analysis should be considered a means of keeping tabs on your competition’s strengths and their flaws, possibilities, and dangers. Competitor analysis is something that most firms already undertake, although many small business owners don’t see it. There are numerous commercial advantages to keeping tabs on your competitors’ products, pricing strategies, staffing levels, research and development, and other market facets.
For example, knowing the flaws of your competition (such as poor customer service) can assist you in attracting dissatisfied customers in the future, hence increasing your sales. But more importantly, there are other reasons why you should conduct periodic competition analysis, including the following:
A question might arise: who is the target audience for competitive analysis? All businesses should be performing competitive evaluations. Apart from the variety of reasons listed above, perhaps the most important cause is to be aware of what you’re up against. As long as there is competition, there is a place for competitive analysis in business.
Example of Competitive Analysis
Competitive analysis can be significantly diverse depending on the industry in question. A generic SaaS will be used as the basis for demonstration. Hence for a SaaS tool, a few things that you might keep track of to gain the upper hand would be as follows:
In this way, while conducting a competitive analysis, you can track various easy indicators and analyze the competition under the purview of the same. If done correctly, this can provide you with really crucial information.