How to Do Competitive Analysis
In order to stay ahead of the competition, it is important to understand what they are doing. Competitive analysis allows you to see what strategies your competitors are using and how they are performing. This information can help you adapt your own strategies and stay ahead.
Do you want to know how your company differs from competitors? Then make a competition analysis. You take a close look at your own organization and compare it with competitors. Based on the results, you will work on a better business position. We explain in ten steps how to make a complete competition survey.
- 1. Determine the goal
- 2. Describe your own organization
- 3. View the market
- 4. Search for competitors
- 5. Determine the main competitors
- 6. Write down your findings
- 7. Analyze your findings
- 8. Make a conclusion & Present it well
- 9. Map out your areas for improvement
- 10. Implement your areas for improvement
1. Determine the goal
The research into competitors can take a long time, so it is important – for an effective process – to determine the goal first. Do you want to determine the market position? Or just an overview of competitor activities? Once you have determined the goal, you will also define the focus. What is important to you to know about the competitors? Is that the product range, the pricing policy, the place of sale, the service, the degree of promotion, etc.?
2. Describe your own organization
For a good comparison with the competitors of your company, it is important to have your own organization clearly in mind. For this you can use the business plan and / or the marketing plan grab it. What exactly is your target group, which products do you offer, for what price and how do you distinguish yourself?
3. View the market
Do a little research on your organization’s market. Look at developments in the sector, the number of companies and the distribution of these companies. Are there many new entrants and is the entire industry under attack? Lots of industry relevant information can be easily found online. News sites and the trade association can also help you to map developments.
4. Search for competitors
The real investigation begins with the investigation of your fellow players. First make a list of the companies you see as competitor. Then go online and search for even more competitors using a search engine. If you work for a hairdresser in your area, search “hairdresser near me” and view the search results. Search for providers of services and / or products that meet the same needs as your organization promises.
5. Determine the main competitors
An investigation into all comparable organizations is not realistic and relevant. The compiled list of competitors can be divided into different levels: Competitors who are in the same waterway as you. These companies have the same target group in mind, have the same pricing policy and / or fulfill the same need. Companies that may focus on a different segment, operate from a different place or have a different business form.
6. Write down your findings
Depending on the focus, an overview is drawn up of the factors you want to investigate. This can be done over the average price, the range and / or the means of promotion. For a complete survey, look at the so-called ‘4 Ps’: Product, Price, Place and Promotion. You can add the fifth P to this: Performance of staff.
7. Analyze your findings
When all the results have been collected it is time to analyze. Describe your competitors per factor examined. What price do they charge? Which target group is mainly targeted? How is the Facebook page used? This part of the survey gives you an idea of what competitors are doing.
8. Make a conclusion & Present it well
What stood out when you formulated the findings? In this part of the research you will compare.
Do you use presentation material? May not be necessary but if you do use it, make sure that the material is only supportive: cool, striking image, sample videos. You an easily find google slides templates online to make sure that you have covered everything that reinforces your story. but no lengthy text slides: reading slides is an absolute no go!
You can easily create a strong presentation with google slides templates from hislide. If you are not a graphic designer yourself, but still want a PowerPoint presentation with a beautiful design then google slides templates by hislide are ideal for you. You rank the action points by priority and determine which points can quickly generate profit. Then draw up a schedule and implement the points for improvement in your organization.
9. Map out your areas for improvement
Based on the conclusion, you can identify areas for improvement. Where can profit be made for your organization? Should your organization work on better distinctiveness? This advice is also important if your organization has the desired position on the market. See what you can achieve in the short term and what should be put on the long track.
10. Implement your areas for improvement
After identifying areas for improvement, you know what your company can work on. Discuss the points for improvement with management and your employees and convert them into concrete action points.