Competitive Analysis

Competitive Analysis


One of the major hurdles that a company perhaps has to face is the threat by competitors. There is a constant pressure to shine in the market and the more the competitors the more the opposition your company possibly has to face. It can be thought of in one of two ways. Either as a threat who reduces the market size for your product, or as a way of learning to become better. Proper research and analysis will allow a competitor to help you grow than fall down.

First things first, you need to identify who your competitor is. Then, you categorize it as either a direct or an indirect competitor. To identify your competitor, you need to ask yourself one major question, What decides who the competitor has to be? It cannot be someone who’s so top-notch it makes no sense and it cannot be a company who’s struggling that much for you to compete with them. So you need to choose your parameter and line carefully.

Once the competitors have been identified and listed, a profile is created for each which outlines the history of the company, the details of management, profiles of their customer database, the objectives and vision of the company.

After that being done and dusted, the important value proposition is defined for the competitor and the specific need the competitor is aiming to target is pinpointed.

Financial Reviews are part and parcel of any business organization and it should be ensured that all revenues are recorded and accounted for. Assessing the risk would be a great idea at this juncture and it can be done easily by assessing the cost trends.

The list of products and services are provided and the reviews about the same are analysed. The R & D department is in the process of launching new products and services. The competitor’s strategies such as Policing, Promotion and Pricing is studied. Their growth is recorded and reasoned. Customer Satisfaction is also recorded.