To be able to effectively gain an understanding of the Market you are preparing to enter, it is vital to have an in-depth knowledge of your competitors.
What is competitor analysis?
Competitor analysis is a critical part of any company’s BUSINESS PLAN. It is an overall assessment of current and potential customers.
A good competitor analysis is a delving process report of the actual market turf that your company must maneuver in order to be successful. And to write a good competitor analysis you must
- Conduct a thorough research
- Be a market savvy technical writer
- Be objective.
So now you know that you can write a competitor analysis; you should know what to write in the report.
A Competitor Analysis Report consists of mainly five points:
- A list of your company’s competitors
- Competitor’s product summaries.
- The strategies used by competitors.
- Competitor’s strength and weaknesses
- The market outlook.
Let’s understand all these points in brief:
A list of your competitors: The biggest and most important question is who all your competitors are?
Let me tell you who can be your competitors:
- Companies with a product or service, which are addressing similar needs.
- Products/services considered being close substitutes.
Competitors can be divided in 4 parts as follows:
- Direct competitors
- Indirect competitors
- Local competitors
- Cross-over competitors
Competitor product summary: Analyze your competitor’s products and services. What products do they sell? What are the features and value of their product?
The strategies used by competitors: Observe your competitors closely. What type of media do they use to market and advertise their product and services? Know their customers. Read their quarterly and annual reports. Combine all these research and you will surely get a complete picture of their strengths and weaknesses.
Competitor’s strength and weaknesses: Well you can find this information in many ways. Check their website. Check their USP. If they are growing so rapidly, so what is it about their product and services that is promoting their growth?
Market outlook: This point should cover that what is the market potential for your company’s product or service? Is it growing or flattening? This portion of your competitor analysis is the measure of market trends for your products and services.
So did you realize till now that the competitor analysis report in your marketing plan is as important as your business? So don’t ignore this report as it will teach you how to overcome new and different challenges.