When starting a business, you need to be aware of the market dynamics, and for that, you need to have a proper market and competitor analysis done to see how to make your business more successful. This can also include seeing the strengths and weaknesses of other competitors, which will help you gain an edge in the market.
We will discuss five steps to efficiently conduct competitor analysis and help make your business reach new heights of success.
1. Identify Your Top Ten Competitors
When you’re selling a new product, you want to make sure who you’re getting involved with or how many direct competitors you have. You can find your competitors through Google or using online tools and applications, which make your task easier. Identify at least ten companies that directly compete with you.
2. Analyze and Compare Competitor Content
After you have narrowed down your competitors, you need to analyze the kind of content they have so you can create a strategy to outperform them. Actively check everything they offer, including their products, services, price range, and customer service. You can also check their reviews, such as Google reviews, to see if there are obvious strengths and weaknesses that seem to be repeatedly mentioned.
3. Marketing Strategies
If you have products and services that are equally as good as those of your competitor, make sure you check the kind of marketing strategy they have. For example, they might have excellent search engine optimization, email marketing or social media advertising that is giving them an edge in the marketplace. You must check what it is that they have and you don’t. This will enable you to create a marketing strategy to outperform the competition.
4. Analyze Competitive Information
It is imperative to do your product evaluation based on your competitors. Check your quality, durability, and price compared to other sellers. It will help you see what your competitors provide to buyers compared to your offerings, which might include free customization, delivery, or other collaborations and incentives.
5. Determine Your Position and Analyze Your Mistakes
After you have completed all the steps, you can quickly analyze where your business stands in the marketplace and easily pick out the things you want to improve upon. This will help you get better in the game and help your sales skyrocket.
Your business is important to you. Doing competitor analysis will help you see what others are working on. This might help you identify opportunities for you to tailor your strategy to outperform all rivals.