However, competitive analysis also makes it possible to verify the feasibility of a project. When there is too much competition in the market, we talk about saturation because supply exceeds demand. It is very difficult to establish yourself in such a market, and in this case it is certainly better to check your offer. Competition is also a source of improvement through a benchmarking approach. In fact, the best practices are rich in lessons to make their processes even more efficient. After all, it is important that every company knows its competitors, because in this way it can better train itself to react to an attack and be able to defend itself in the best possible way. On the other hand, if the company takes the initiative to attack, it must recognize the strengths and weaknesses of its competitor in order to make the best decisions to deal with them. On the Internet, competition is omnipresent and evolving. How do you identify your competitors and how do you differentiate your content offering from the crowd? It is a question of describing the competitors by remembering their history, their characteristics, their location, their organization, their strategy, their technical mastery, their size, their offer, their price, their distribution policy, their communication policy, etc.

The data can be presented in the form of a competitive comparison table (this is called competitive benchmarking). Finally, be careful, in any case it is important to analyze direct, indirect, but also potential competition. Indeed, indirect competition may, in some cases, have a greater impact than direct competition. Direct competition includes all companies offering a similar good or service. Indirect competition consists of companies that offer a different product or service, but that meet the same needs. This competitive study should be included in your business plan. So this is something that can be crucial if you want to be backed by investors, for example. However, competitive analysis is a very important tool for any market-oriented business. Whether you`re an experienced entrepreneur looking to re-evaluate your vision of the current market or preparing to start your business, here are the steps and tools you need to conduct in-depth competitive research and identify key points (presence on social media or in search results, pricing, etc.).

Once all the information about the competition has been received, it is now time to analyze this data. This step is called a competitive benchmark, for which we use several tools: in the end, the analysis of the competition must lead the manager to decide on a competitive strategy: here you will find everything you need to know about the competitive analysis. An up-to-date competitive analysis is a powerful tool for assessing how your brand compares to the competition at any given time, while giving you a clear direction to follow to shine in the future. Home » Management » Strategy / Marketing » Competitive Analysis: 4-Step Methodology In the end, the analysis of the competition must reveal what could be the best place of the company on the market. It presents the strategy for the future and in particular the price-product positioning and justifies it. When launching a new product, it is also customary to conduct a thorough investigation of the competition. This allows: Competitive analysis is the process that a company puts into practice to know how to act in the competitive environment, which begins by recognizing its competitors to determine their main objectives, strategies, strengths and weaknesses. Competitive analysis has several purposes: These questions allow you to have an overview of what distinguishes these companies from each other and how they want to differentiate themselves from their own competitors in their market. The objective will very often be to differentiate itself from the competition. To do this, it is therefore necessary to know what the latter proposes. Indirect competition, on the other hand, concerns potential new entrants.

This is a hypothesis that must be considered beforehand. The study of the contest is a basis for reflection, no list of articles to copy / paste, stay ethical! Would you be happy if your website interface is reproduced, the only difference being pink instead of blue? If you start your competitive analysis without setting a direction or achieving an end goal, the task becomes much more difficult. Before you dive headfirst into the research process, define your goal and what you want to learn about your competitors. The study of competition is mainly based on 3 points: however, the stages of the analysis of competition consist first of identifying competitors, then knowing and evaluating their actions in the market and determining the strategies exactly how we will defend ourselves or how we will face competitors. For all these reasons, it is important to understand the positioning of your competitors based on a competitive matrix. You will learn how to stand out and build a solid reputation in the eyes of consumers. By standing out from the competition, you improve your brand awareness. It will also justify the price of your products and ultimately improve your bottom line. When setting up a company, the study of competition will allow the following: In the case of the automotive industry, Toyota competes with Nissan because they are competitors in the same sector, which is why any company that produces automobiles is considered a competitor in the same sector. To structure your analysis, the SWOT model known in the world of marketing and management can help you. You will focus your attention on 4 parameters in your competitors and especially on you in relation to the competition: strengths, weaknesses, threats and opportunities. Tags: competitive analysis coursedefinition of competitive analysiscompetitive analysis pdfCompetitive analysis of the consumer of direct and indirect competitorscompetitive study method competition analysis gridCompetition comparison table At this point, it makes sense to create a competition table by listing the essential information (market share, positioning, etc.) for each entry.

Competitive data is essential to starting a business. By performing competitive analysis and improving your understanding of the market over time, you can always be one step ahead of your competitors. You`ll be able to conquer new markets, bring new products to market, and keep an eye on your competitors` customer base. This modern approach to entrepreneurship allows you to ensure the success of your business. While a true competitor is any company that we can easily identify because it is currently competing in our market, it is easy to know it and how it behaves in the competitive environment. Market research makes it possible to analyze the market of a company and in particular to present opportunities and threats. In this last part, we can meet the analysis of competition, that is to say the study of the intensity of competition on the market.