What Will I Learn?
- 1 How do you analyze business competitors?
- 2 Company competitive analysis sample table.
- 3 Product Competitive Analysis sample table:
- 4 What is the competitors’ analysis framework?
- 5 Why is competitors’ analysis an important part of a business plan?
- 6 Five attack strategies in marketing.
- 6.1 1. Front attack market entry strategy
- 6.2 2. The flank attack market entry strategy.
- 6.3 3. Encirclement “Blitz” Attack market entry strategy.
- 6.4 4. Bypass attack market entry strategy.
- 6.5 5. Guerrilla warfare market entry strategy.
- 6.6 How do you analyze business competitors?
- 6.7 What should a competitor analysis include?
- 6.8 What is the competitor analysis process?
- 6.9 How do you write a simple competitor analysis?
- 6.10 What are the five steps and parts of competitive analysis?
Business competitor analysis helps entrepreneurs determine their competitors’ strengths, weaknesses, threats, and opportunities. This study will help define your products and how you will deliver them to the market and gain a competitive advantage by capitalizing on your competitors’ weaknesses and understanding the keys to the success of the target market.
There are three types of competitors: Direct competitors, Indirect competitors, and substitute competitors.
Direct Competitors: A direct competitor to your business will be offering similar products or services targeting the same customers and target market. Direct competitors will have the same goals as you to get a share in the market and grow their customer base. Direct competitors offer the same distribution and sales strategy as your business.
Indirect Competitors: An indirect competitor will be selling the same product or services like yours, however, their end goals are different.
Substitute Competitors: A substitute competitor is a business offering the same product or services that you also offer.
How do you analyze business competitors?
You will need to define your business competition in terms of product pricing, product quality, product packaging, profits and sales, location of business, and finally any other business operation strategy.
1. Describe your competitors.
Business competitor analysis is part of market research, you will need to identify businesses competing with you during the market research and industry research. The first thing you will do is identify your target market. Then you will have to identify expected or potential business competitors.
Once you have identified your business competitors you will need to classify them, e.g., primary competitors, secondary competitors, and potential competitors.
You will need to classify your competitors because you need to limit the size of your competition population for competitor analysis so that you can analyze the competitors in more depth. You may need to classify the competitors into samples so that you can classify the competitors based on your business operation strategy.
2. Sampling your competitors.
You will then need to classify the business based on how much each business is making in terms of sales and profits, to do this you will have to rely on businesses that already exist and you have access to their financial information. Normally, we use data from private and public listed companies, you will find financial data on their yearly reports or investor reports.
3. Competitors’ operation analysis.
For each of the companies, you will have to determine their business operating strategy, for example, you will have to identify their products, quality, business operation hours, human resource size, after-sale services, sales strategy, vendors, and production capacity, investors and their advertising channels.
Here is where to get information from your competitors:
- Competitors management interviews
- Competitor’s commercials.
- Competitors’ products brochures.
- Competitor’s websites and e-commerce stores.
- Competitor’s publications such as investors reports.
- Online sources such as blogs and media outlets.
Company competitive analysis sample table.
After the competition research, its time to summarize your findings in a competitive company analysis as seen in the table below:
|Activity||Competitor 1||Competitor 2 >> So on|
Product Competitive Analysis sample table:
The next step is to fill out a product features competitive analysis as shown below:
|Activity||Competitor #1||Competitor #2 >> So on|
|Ease of use|
|Number of features|
|Types of features|
What is the competitors’ analysis framework?
A competitor analysis framework is a competitive analysis model that acts as a guide towards researching and analyzing your competitors.
The company with the most information on the market will spend the most on market research. This kind of research is a good investment that can save time and money later. It can also help the company know what products and services will be necessary to give the best customer service.
The competitor analysis framework helps competitive analysts by giving them a structure they can use to home in specific data when researching a competitor. Competitors’ analysis framework Includes:
Strategic group analysis
Strategic Group Analysis examines the competitive positions of participants in a certain market, as well as the underlying causes that influence a company’s profitability and the competitive dynamics of an industry.
It tries to characterize all key competitors’ strategies along broad strategic dimensions. These criteria that divide participants into strategic groups must be determined in light of the industry structure, profitability factors, and project concerns.
The Boston Consulting Group developed the Growth-Share Matrix (also known as the Product Portfolio Matrix) (BCG). The goal of the BCG Matrix is to make strategic product investment decisions.
In competitive analysis, the matrix is used to examine business units or product lines using two variables: relative market share and market growth rate. A corporation can pivot its products and choose where to invest resources, maximize cash flows, and divest by combining these elements into a matrix.
A Perceptual Map (PER MAP) is a diagrammatic tool used by marketers to visualize the perceptions and views of (possible) customers about items, product lines, or brands. A perceptual map can also be used to depict a company’s competitive status.
The word perceptual derives from the word perception, which refers to a consumer’s understanding of competing products and their associated features on the market. Perceptual maps are also known as placement maps in some sources. In truth, for marketing purposes, these two terms have the same meaning.
Porter’s five forces model.
Porter’s Five Forces is a strategic tool for identifying and analyzing five competing forces that shape every industry and business. It aids in determining the strength of your current positioning as well as the strength of your long-term strategy.
Understanding these five forces will help you figure out where you are in relation to your competitors, substitutes, customers, suppliers, and new entrants in a given business. This model will assist you in determining which of your competitive advantages, if any, are likely to be your USP. On a scale of high to low, you will determine the power of each of the forces. Identify that the power will vary based on the organization; nonetheless, combining all of the forces and looking at them as a whole will help you understand your strengths and limitations. Regardless of how well organizations perform, the core factors of profitability remain the same across all industries.
What is a competitor SWOT Analysis?
A Competitor SWOT Analysis is an analysis of your competitors’ strengths, weaknesses, opportunities, and strengths to gain competitive intelligence.
Competitor SWOT Analysis is the same as your company’s SWOT analysis, however, a competitor SWOT analysis turns this process outward looking at what your competitors’ strengths, weaknesses, opportunities, and threats.
The table below shows what you need to look out for when you dive into competitive intelligence research using competitive SWOT Analysis:
|Internal factors that give your competitor an advantage over you||Internal factors that you will use against your competitor||External factors that give your competitor opportunities||External factors that you can use against your competitor|
Why is competitors’ analysis an important part of a business plan?
1. Understand Competitor’s Products.
Using a competitive analysis on your business plan helps you understand the competitor’s products and how they differ from yours, the key questions answered by a competitors analysis include finding similarities between your competitors and your products, their products and services pricing model, their products and services unique selling points, and the strategies they are using to distribute their products.
2. Understanding the Competitor’s Brand.
You will be able to understand whether your competitor’s brand is the same as yours, who they are targeting with their brand, and how well they have put their name around the market, a strategy called market positioning.
3. Understanding your competitor’s marketing.
Understanding your competitor’s marketing strategy is one of the importance of working on a competitor analysis, the challenger can understand the competitor’s marketing channels they use to sell their products and services. They can understand their distribution model, their sales strategy, their advertising strategy.
4. Understanding your Market customers.
The challenger can understand the customers by looking at how they engage with the competitor, and how they communicate. The products they respond to well and what platforms they use to communicate and engage.
Five attack strategies in marketing.
There are three basic strategies you can use to enter the market. The first is to find a market that is not fully saturated. The second is to find a market that is already saturated, and the third is to enter a saturated market.
It is good to start with the easiest and easiest way to reach potential customers. Even if you are not using an effective method, you can still save on time and money.
Two things make a consumer choose one brand over the other, they include.
Price: If the price is cheaper on your competitor’s products and services and you offer similar products and services, the customer is more likely to purchase from the cheaper option.
Service: When it comes to services, customers want faster and personalized services at their convenience. When it comes to competitive analysis of competitors’ services the winner when it comes to personalization and faster services wins the largest market share as the lack of shows a weakness.
Quality: The quality of products and services matters a lot to customers, they want products and services that are long-lasting, stylish based on the new trends, and taste better.
There are five strategies to enter a new market, they include:
- Frontal attack
- Flank attack
- Encirclement “blitz” Attack
- Bypass attack
- Guerrilla warfare attack
1. Front attack market entry strategy
The frontal attack is usually done by a new entrant to the market and attacks the current market competitor marketing mix by producing higher quality products that fit the market, considering consumers’ pricing needs, promoting the products to consumers using a competitive marketing strategy, and finally offers better products distribution that the competitors. The frontal attack is done by the new entrants if they have enough resources in terms of funding and a qualified operational team than the competitor.
2. The flank attack market entry strategy.
When a new entrant to the market has fewer resources and capital than the competitor, the flank attack is one of the most efficient strategies they can use, they identify the market the competitor has not yet filled and fill it, and they later develop market segmentations around it. This includes the market trends, economic forecasts, and organizational changes that can affect the business. This is done by considering the personnel, resources, and the company’s customers.
3. Encirclement “Blitz” Attack market entry strategy.
The encirclement “Blitz” attack happens when the new entrant to the market challenges the competitor at different frontal levels, the new entrant has the resources to challenge the competitor to take a portion of the target market.
4. Bypass attack market entry strategy.
The bypass attack strategy is normally used by new entrants to the market with limited resources, they bypass the competitor’s target market by providing different products not offered by the competitor in a new target market that the competitor has not yet identified.
5. Guerrilla warfare market entry strategy.
Guerilla attack involves the new entrants to the market challenging the competitor in small attacks to demoralize the competitor, the new entrants, later on, follow with a major attack to get a stronghold on the target market.
How do you analyze business competitors?
You can analyze your competitors by using the following techniques:
1. You can analyze the market your competitors are targeting by observing their products.
2. You can analyze the services they provide by observing what they are advertising.
3. You can analyze the value of their products by observing the prices they are charging.
What should a competitor analysis include?
A competitor analysis should include the following:
1. Your competitors’ strengths and weaknesses.
2. What are the benefits and drawbacks of their products and services?
3. What are their strengths and weaknesses?
4. What are their offerings, and why are they considered better than yours?
5. What are their strategies in the marketplace?
6. What is their position in the marketplace, and what will happen to it?
7. What is the competition’s pricing strategy?
8. What is their customer service strategy?
9. What is their marketing strategy?
What is the competitor analysis process?
Competitor analysis identifies the competitors and the steps you can take to beat them. The process of competitor analysis is a very important tool in business and competition. It helps you identify the strengths and weaknesses of your competitors. The goal is to come up with strategies to beat them.
How do you write a simple competitor analysis?
Or services. You might want to know the size of your market, if it is growing or shrinking, and your name, address, and contact information. You should also get a You will need the competitor’s idea of their products and how many customers they have. You will also want to know if there is competition in the marketplace. You should also find out what the company’s strengths and weaknesses are. You will have a good starting point to begin writing your competitor analysis when you have all of this information.
What are the five steps and parts of competitive analysis?
The competitive analysis examines the market or your product and competitors’ products and analyzes what those products have in common. It is a step that is usually done before a new product is developed. It is important because it can help you decide what to do next. The steps of competitive analysis are:
1. define the problem
2. understand the problem
3. identify the current situation and analyze the current situation
4. decide the alternatives
5. develop the alternatives