Crafting effective competitive analysis should be a priority for every business owner. The examples of the greatest business people show us how significant the process of keeping an eye on the competitors is. In fact, this is even more important for small businesses as they are more vulnerable to any competition.
Therefore, analysis of how well your company is doing is essential to your business. In case you don’t realize all the potential this analysis might have for your business, here is a list of advantages of competitive analysis plan.
Competitive analysis advantages
- Helps you see how well your company worked in the given period.
- Helps you see how competitors’ business grew. One should have a clear understanding of how well his competitors are doing, what in their strategies work better as well as what practices can be adopted.
- Makes it easier for you to see what changes should be added. One should not only check out his own performance in order to see what alterations need to be done as well as how exactly the strategy can be adjusted to the current situation on the market.
- Assists in marketing strategy adjusting.
- Points out points you missed or did not do to the full extent of your power. There might not only be errors to fix but also areas to pay closer attention to.
- Helps you see what errors your competitors do which makes it possible for you to use their mistakes to increase the presence and impact on the niche.
- Assists you in foreseeing the prospects. It is not only an analysis but also a good strategy planner. Thus, instead of merely looking at what is done, you can also consider making bold plans and assessing the results.
However, a lot of business owners are afraid of the business writing for any type of business, as this task seems to be overwhelming and tedious.
For this reason, we have decided to introduce you to an excellent guide on how to create a perfectly competitive business analysis step by step. You will see that it is as complicated as it seems when you have a good structure. So, save it and use for your own business.
Tips on how to craft effective competitive analysis
- Search for a good template or use our plan.
What we found on the resources of very influential business people is astonishing. There is a simple but powerful template which makes such writing easy and comprehendible. So instead of spending hours coming up with a brand new idea, use what has already been given.
- Identify your rivals.
Think deeper than just a couple of the nearest companies you are working next to. Think of the businesses which dominate the market. What are they? How did they get to this point in their development? How much influence they have in the niche and for how long have they held this area under their control?
By identifying your rivals and creating a better vision of who they are and what they are good at, you increase the potential of your analysis.
- Analyze your competitors.
One should ask several questions.
* First of all, think of the strengths your business rivals have. Are their prices lower while the quality is equal to yours? What about the quality of their product compared to yours? Do they have a wider range of goods available?
* Now proceed to their weaknesses (you will enjoy this part more!) Check out what they missed and think of how you can benefit from their loss.
* Analyse their goals. Maybe they have a mission or some strategy to achieve certain things within a limited amount of time. Are these goals suitable to you too? Can you learn from their example?
* What can you do to increase your influence on their market? How can you take over their area of control?
If you have no idea where this information can be found, check out their websites where clear missions are stated as well as visit their office. Experiencing collaboration with them was a client is essential to crafting a full picture of what the real situation is.
Besides, you can search for reviews on this company on resources like TopTenReview or read the feedback section on Twitter or Facebook where customers depending on the type of business we are talking about here rate the businesses and services they deliver. This will give you a better understanding of the situation.
So, use all the resources to analyze the current situation your rivals have.
- Think of business owners who become your rivals soon.
You might not be able to name those companies but if your current niche is profitable and has no giant companies dominating it, be sure that more businesses will want to join it.
Therefore, your task is to analyze your resources and think of the ways you will not let them win your share of the niche.
More rivals is not a bad thing unless you have no advantages to offer your clients when trying to keep them. Competitors help us grow and develop. Thanks to them we strive for the best results. However, we are to be always prepared to meet them and still keep all of our clients.
So, make sure you took all the potential rivals into account too.
- Evaluate your risks.
This point is closely connected to the one right above it. You need to know what resources you have to offer to your clients to keep them content with your product. Consider assessing your financial state whether you are standing on your own feet confidently.
Don’t miss the risks, as they might be a reason why your business might begin to show signs of strain.
So, take possible risks into consideration while working on the competitive analysis.
- Reconsider your marketing strategy.
Do you keep your target audience in mind when crafting content or customizing ads? We know a lot of examples when business owners created a perfect marketing strategy; however, later in the process of its implementation, they lose the focus. As a result, they don’t achieve what they were supposed to and don’t gain more influence in the niche.
Therefore, our recommendation is to check whether your marketing strategy is correct and oriented on the proper audience, as it is essential to your company’s success.
- Analyze your opportunities.
What opportunities do your customers get? Are they satisfied with what they get now? In case the answer is negative, think of what you can offer them on top of what they have now.
For instance, let them try your product out before buying it. Normally, when a person gets to touch and feel what he is about to purchase, the chances that he will buy this thing are much higher.
Besides, you can offer your clients a chance to suggest what exactly they want to see in your product. IS there something they would improve? How would they do it? Basically, you are asking what will make them happier and more willing to buy what your company is producing.
This method is highly effective. If your rivals do it, you can see that it works in almost 100% cases. Feeling that they have the power as well as the right to improve users’ experience, they will feel better about you and what you have to offer.
All in all, give your clients a chance to alter your collaboration.
Dedicating some time to studying the rivals you are in the same niche with is essential to your success. This is only one of the ways you can analyze the situation. But if you have some other ideas, please, share what your approach to such analysis is!