Have you been trying to create a successful business in the shortest time possible? A competitive analysis is one of the best places to start.
While some businesses may already realise it’s importance, others are yet to understand the benefits of competitive analysis.
This piece is for the latter.
Competitive analysis involves studying various businesses or groups in your industry. It requires a comparison between your company and another to identify gaps and ideas to improve your company rankings.
All in all, the online examination has distinct uniqueness; you can either compete by evaluating website rankings or the number of subscribers.
When choosing competitors, don’t just select anybody. Chose a business that’ll challenge you to work more.
In this article, we analyzed some of the undeniable proofs proving why you ought to study your competitors. We’ll also highlight options for doing it.
Importance of Competitive Analysis
Conducting this analysis brings with it numerous advantages. From being able to identify gaps in the market to identifying new keywords you could be targeting.
Below we highlight some of the more important reasons for conducting a competitive analysis.
– Identifying Weakness
Knowing how well you’re doing against your competitors is important for identifying your strengths and most importantly your weaknesses.
Otto Von Bismarck, a Prussian and German statesman of the 19th century. Once said “only a fool learns from his own mistakes. The wise man learns from the mistakes of others.”
Knowing where someone has failed in their business efforts or where they performed poorly will help you identify where their weaknesses lie.
Having identified their weakness, you will have to outsmart them in by making their weakness your strong point.
– Secure your USP
Conducting this analysis allows you to identify the skills or services you have that your competitors don’t. This is one unique thing you can offer that your competitors can’t.
Once identified, you must emphasis on your Unique Selling Proposition (USP). This can range from a variety of factors including your:
- Website navigation
- Product quality
- Speed or reliability of delivery
- Ease of ordering, etc.
Having this information allows you to stay a step ahead of your competition. As opposed to imitating competing businesses, this process allow for better brand recognition.
– Understanding the market
This analysis also helps you to understand the market you’re in and it’s changing business trends. In other words, ‘studying the enemy can you to understand the battlefield‘.
You’ll be able to identify gaps in the market and strategically position your company to take advantage of this gap.
While this process might not help with immediate business decisions, it does help to consider it with creating a strategy for the future.
– Business growth
A competitor analysis allows you to uncover potential opportunities in the market. These are opportunities where you can increase your market share, gain a competitive advantage etc.
When looking at growth planning, a competitor analysis allows you to put yourself in the shoes of your customers instead of looking at it from an internal perspective.
– Keyword ranking
By completing this analysis, you can identify where you rank compared to your competitors.
With this information, you can adapt your existing content or create new content based on the outcome of the analysis.
When done right, you can position yourself on the first page of google by creating highly informational and relevant content that readers will find helpful.
it’s important to note, there isn’t a ‘right’ period to do this. You can conduct this analysis at any point and frequency.
A popular quote by Rod Laver goes “The time your game is most vulnerable is when you’re ahead. Never let up.”
In terms of business, we take this to mean there’s no one approach for growth. It’s constant and ever changing and so should you.
– Identifying new opportunities
Analysing what other businesses do can give you new ideas to implement to your business.
A competitive analysis helps you learn the ins and outs of how your competition works. It also helps you identify what they’re doing right and opportunities where you can easily one-up them by using a strategy they haven’t taken advantage of.
For example, by examining the your competitors approach to advertising both online and offline, you can identify an area they neglected or a service they don’t provide.
With this process you can fill in areas where your competitors are lacking.
– Helps to determine budget
A competitor analysis helps to determine a budget for different departments.
With marketing for example, by monitoring the advertising efforts of your competitors you’ll be able to determine how much to allocate for your organisation’s advertising budget.
Competitive analysis is an underrated effort. While some marketers do understand it’s importance for business growth, a majority of them underestimate its effects.
Carrying out this process effectively will place you a step ahead of your competition and provide various financial benefits for your organisation.