Your level of innovation, motivation and success in business is a function of your ideas, effort and knowledge. Knowledge of your competitors is also very important, it is as important as the innovation you want to work on.
Competitor Analysis will guide you in doing so many things and it also actually saves you the stress of taking the wrong turns your competitors took.
Meaning Of Competitor Analysis
This is the assessment or evaluation of the strengths and weaknesses of your businesses’ competitors.
This is a comprehensive analysis and evaluation of your competitors both directly and indirectly. The following can be used to compare your business with your competitors analytically
Financial resources, Staff, Products, Service, Market share, Pricing, Customers, Financial data, Brand recognition, Location, Marketing tactics, Logistics.
The following information can be found online and by doing research into the different firms. You can also patronise these firms to actually know more about their customer relations and product types.
Buying the product will help you to get to know how it is serving their customers and what you think you can add or subtract from your product.
An online search will help you with information that your competitors have shared for general consumption.
Uses of Competitor Analysis
Competitor analysis is mainly used to get into your competitor’s head to understand their reasoning. This will make you understand why the market is working for them or otherwise.
- This will help you to develop products around customer complains; that is, the cons of the products of other firms should be what you will work on for your product
- You will also be able to use the competitor analysis to acknowledge user bases currently ignored; you can start poking your finger into sub-niches that are ignored by the rest, as long as you are going to make money in those sub-niches.
When To Use Competitor analysis
You need this analysis to develop your firm as a whole and most importantly your products. As soon as you are planning to start a new project one of the first steps to take is to start a competitor analysis
Also, you can use competitor analysis when there are threats or potential challenges to get an edge against competitors.
Competitor Analysis is one of the most important analyses that you are to embark on as a business owner or manager. It will save you a lot of stress and resources.
Download a free competitor analysis template “Competitor-Analysis-template-billionairesclub ” and do not forget to drop a comment below.
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