A competitor analysis’ purpose is to provide you with information that will help you make better product development and marketing decisions.
Complete the steps below to unearth those “hidden-in-plain-sight” knowledge nuggets.
1. Identify your competitors.
To climb a mountain, you must first choose which mountain you want to climb. Hiking up a 1650-foot hill with clearly marked paths isn’t the same as climbing Kilimanjaro.
You’ll need a variety of preparation, equipment, and assistance. You’ll need to look at three categories of rivals to figure out how difficult your “climb” will be:
An eCommerce business that provides similar products to the same target market (both geographically and demographically) at a similar price point is referred to as direct competition.
Step 2: Analyze Competitors’ Market Positionings
The next step is to look at how your competitors market their products and services to their target market (who is also yours).
Your competitor analysis guide should cover the following areas:
- Brand positioning
- Ecommerce website
- Customer experience
- Sales strategy
- Pricing strategy
- Marketing strategy
- Content strategy
- Shipping strategy
- Discounts/Promo strategy
Compare and contrast the weaknesses of your competitors with your own. Pay attention to the opportunities they’re passing up. Is there any way you could use them to your advantage?
On the contrary, knowing your strengths and weaknesses can help you better assess the overall market circumstances and entrance barrier – and prepare you to overcome it.
Step 3: Analyze Competitor’s Content
It’s no longer a secret that content reigns supreme. As a result, looking at what kind of content your competitor post might reveal a lot about their business approach.
Furthermore, evaluating your competitors’ content should be pretty simple: you may do so right away by visiting their websites and social media profiles.
Step 4: Competitor Price Analysis
Collecting information on your competitors’ pricing strategy should be simple: list the prices of their products and/or services and compare them to your own.
Step 5: List Their Strengths
Now that you’ve analyzed how your competitor’s business propose their value and their online presence, we can put together a list of their strength.
There may be several aspects to consider here depending on your business type and/or niche, such as:
- Company size
- Location (for local business)
- Value proposition, as discussed above
- Pricing strategy
- Product/service quality
- Specific target market
- Website traffic
- Social media engagement
- SERP ranking for valuable keywords
Step 6: Develop Your Strategy
After you’ve completed the steps above, you’ll have a better understanding of your competitors, and our goal in this phase is to put that knowledge into action.
Make a thorough list of competitive analysis data and utilize it to make the necessary modifications to your business and/or marketing strategy.
For example, consider whether you’ll need to change your pricing strategy to compete more effectively, whether you’ll launch a new product/service, or whether you’ll target a different market entirely.
You can safeguard your business from strong competition by adjusting your strategy. Keep in mind that your competitors are likely to conduct a competitive analysis of your company as well.
You now have more knowledge and insights into what your competitors are doing after conducting a thorough competition analysis.
Analyze any information you can about each competitor and look for ways to improve your own business. Remember that the purpose of your competitive analysis is to help you outperform your competitors.