The Importance of Competitor Analysis
Competitor analysis is about broadening perspectives, and keeping a track of what your competition is doing in the market. Competitive analysis is an assessment of the strengths and weaknesses of your current and potential competitors.
Honestly, there is no hard and fast rule as to when as to when a competitive analysis should be conducted. However it’s a good thing to stay ahead of your competitions plans. It is highly recommended to do a competitive analysis on a quarterly basis for the best results.
We know that industry trends and market landscapes are highly prone to volatile changes; and it is thanks to regular and ongoing competitive analysis that business can remain fast in the face of competition.
Why is competitor analysis important:
“Competitor analysis is a great opportunity to put yourself in your customers’ shoes and look at your market and business from the outside”
The very core purpose of competitor analysis is to understand the competitors strengths and weaknesses in comparison to your own, and find the gap in the market.
The competitor analysis is important as
– It will help you to know how to enhance your own business strategy
– It will give you an idea as to how to out – do your competition
– It will also provide you with a competitive edge.
1. It helps to establish Benchmarks
You can check out a competition similar to yours. Take the metrics for how well their Facebook posts do, combine them for an average and set that as the benchmark you have to surpass.
2. They help to know your why
This is a very crucial pointer. A competitor analysis will help you know the why! “why” should a customer buy your clients brand over the many others? After a good SWOT test, you can try keeping your product in a different light.
3. What does a competitor analysis help us to understand?
1) To know strength and weakness of your competition
2) Making effective strategies for your company
3) You can learn from the success and failure of your competition
4) You can identify the threats and challenges your competition brings
So, at the end of the day, a competitor analyses is very much needed. It will help to not only understand the competition; but also make sure you stay ahead of it.