Posted in Marketing and Strategy Terms, Total Reads: 2563
Definition: Competitive Analysis
It is the process of identifying the competitors and evaluating their strengths and weaknesses against our own products or services. This forms an indispensable part of any company’s marketing strategy. Doing a competitor analysis helps a company, recognise it’s competitors and their products. This enables it to position it’s own products in a manner that attracts customers.
Process: To do a competitive analysis, firstly all the competitors are identified by the company. Next, these are classified in strategic groups based on factors like market share, similar target market etc. Secondly, for every competitor, we list down the products, market share, power, profit, strategies followed, strengths, weaknesses etc. This is generally done in a grid. Based on competitive analysis, the company can make sound strategies to tackle the competitors.
Example: If you plan to open a new restaurant in a locality, you will have to analyse what other restaurants are present nearby. Further we will also analyse what cuisine they are known for. Also, we will analyse their prices before making our price list.