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Competitive Analysis

Competitive Analysis

Business takes place in a highly competitive, volatile environment, so it is important to understand the competition. Sometimes companies compete by offering a unique product or service. However, other times, it’s not the actual product or service that creates competition, but rather the way in which it is sold. For example, people have been buying music recordings for much of the last century. But ever since music became available on the Internet (whether streaming or downloads), companies have been competing to find the best way to deliver what is essentially a commodity.

If you can solve a problem or provide a radically new experience for customers, you have a better shot at competing. The process of identifying and researching your business competitors is called a competitive analysis, which this article discusses in more detail.

Why You Need This is Business

The competitive analysis has several different moving parts, so take your time. The following questions will help you get started: Who are your five nearest direct competitors? Is their business growing, steady, or declining? How does their product or service differ from yours? What are their strengths and weaknesses? Who are your indirect competitors? What can you learn from their operations or from their advertising?
Start a file on each of your competitors including advertising, promotional materials, and pricing strategies. Review these files periodically, determining how often they advertise, sponsor promotions, and offer sales. Study the copy used in the advertising and promotional materials, and their sales strategies.

How To Analyse the Competition

Names of competitors – List all of your current competitors and research any that might enter the market during the next year. Summary of each competitor’s products – This should include location, quality, advertising, staff, distribution methods, promotional strategies, customer service, etc. Competitors’ strengths and weaknesses – List their strengths and weaknesses from the customer’s viewpoint. State how you will capitalize on their weaknesses and meet the challenges represented by their strengths. Competitors’ strategies and objectives – This information might be easily obtained by getting a copy of their annual report. It might take analysis of many information sources to understand competitors’ strategies and objectives. Strength of the market – Is the market for your product growing sufficiently so there are enough customers for all market players?

Some Ideas For You

Internet – The internet is a powerful tool for finding information on a variety of topics. Personal visits – If possible, visit your competitors’ locations. Observe how employees interact with customers. What do their premises look like? How are their products displayed and priced? Talk to customers – Your sales staff is in regular contact with customers and prospects, as is your competition. Learn what your customers and prospects are saying about your competitors. Competitors’ ads – Analyze competitors’ ads to learn about their target audience, market position, product features, and benefits, prices, etc. Speeches or presentations – Attend speeches or presentations made by representatives of your competitors. Trade show displays – View your competitor’s display from a potential customer’s point of view. What does their display say about the company? Observing which specific trade shows or industry events competitors attend provides information on their marketing strategy and target market. Written sources – General business publications; marketing and advertising publications; local newspapers and business journals; industry and trade association publications; industry research and surveys; computer databases (available at many public libraries).

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Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506

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About the Author

People who want a lot of Bull go to a Butcher. People who want results navigating a complex legal field go to a Lawyer that they can trust. That’s where I come in. I am Michael Anderson, an Attorney in the Salt Lake area focusing on the needs of the Average Joe wanting a better life for him and his family. I’m the Lawyer you can trust. I grew up in Utah and love it here. I am a Father to three, a Husband to one, and an Entrepreneur. I understand the feelings of joy each of those roles bring, and I understand the feeling of disappointment, fear, and regret when things go wrong. I attended the University of Utah where I received a B.A. degree in 2010 and a J.D. in 2014. I have focused my practice in Wills, Trusts, Real Estate, and Business Law. I love the thrill of helping clients secure their future, leaving a real legacy to their children. Unfortunately when problems arise with families. I also practice Family Law, with a focus on keeping relationships between the soon to be Ex’s civil for the benefit of their children and allowing both to walk away quickly with their heads held high. Before you worry too much about losing everything that you have worked for, before you permit yourself to be bullied by your soon to be ex, before you shed one more tear in silence, call me. I’m the Lawyer you can trust.