In marketing and brand management, competitive analysis is the evaluation of current and potential competitors’ strengths and weaknesses. This analysis identifies opportunities and challenges from both an offensive and defensive strategic perspective. In order to promote efficient and effective strategy formulation, execution, tracking, and modification, profiling brings together all applicable sources of competitor analysis into one system.
At the conclusion of this Blog, you will be able to do a competitor review and have answers to the questions that you should be asking yourself as a business owner. Will my business model be able to take off in the face of my competition and what they’re doing, or is it doomed to fail? Do you want to gamble anything for a small reward?
Before opening a new business, most business owners fail to prepare a business plan, or even worse, a thorough competitor study. They have a “wait and see” approach, which almost always leads to disappointment and poverty. Finding something that will determine how you can distinguish your business from the competition is an important part of every business strategy.
You must divide your competitors into categories as part of your research. This will help you recognize between direct competitors and others that will only sometimes steal your customers. You must also consider your political competitors, identifying who does not currently pose a danger but could do so in the future if circumstances change.