Introduction to Competitive Analysis
What is Competitive Analysis?
Competitive Analysis is a crucial aspect of business development. Analyzing and understanding who are potential competitors of your business and idea can help you take the right steps to develop a unique value proposition. It is a process in which a business identifies its competitors and engages in analyzing their strengths, weaknesses and future strategies. Understanding your competitors and doing competitive analysis well sets the business at the correct path to develop their go-to-market strategy. If a go-to-market strategy is successful, that significantly increases the chances of business success.
Every business should identify both direct and indirect competitors. It is always important to understand competitors that are easy to identify and also the ones who might not compete with your business at one glance. In order to hold a competitive advantage over your competitors, it is necessary to conduct detailed research about their products, sales, and marketing plans/tactics.
5 Steps for conducting a Competitive Analysis