Competitive Analysis is term widely used in today’s business world. It might be either for a blog or for a product or service or for the startup itself. In simple words, competitive analysis can be defined as testing waters before taking the final plunge.
Competitive Analysis is a critical part of the company’s business plan as this is going to decide the direction for the design and manufacture of the product but also the marketing strategies that are going to be implemented.
Once you have set yourself up to something, it is time to gather information about it. The information might be about the existing products, manufacturers, features of the product, sales, positives and negatives which are working for and against them. With the internet at tips, now it is easy to get the details with paid tools and generate feasibility report.
Competitive Analysis begins with analyzing your own idea and the possibilities you find in making this idea a success. As per the experts, who develop business strategies following four areas are considered to analyze the competition in the market
- Market Research
- Primary Customer Motivators and their business models
- Major component costs and maintenance
- Obstacles found in the industry and new possibilities
The competitors are evaluated based on the strategies implemented, product or service, profitability, growth pattern, marketing objectives, past and current strategies, cost structure, sales, and also the strengths and weaknesses of the competitor. Before going to the above details you will have to answer the following questions.
- Who are your competitors?
- How long are the competitors existing in the market?
- What is the market share of the competitors?
- What are the strategies implemented?
- Which strategies have worked well in the market?
- What are the Marketing methods implemented?
- What is the success rate of the marketing campaigns?
- Who can be your potential threats?
- Which weaknesses found in competitors can be utilized for your growth?
Competitive Analysis Report is crucial as it is decided the direction to spearhead your product to succeed in the market. In short, it gives you an opportunity to design the blueprint for the company’s future and success.