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.

There are three types of business competitors

  • Direct competitors: Have goods or services that are identical to yours.
  • Occasional competitors: Sell services or goods that are slightly different from yours or are located in a different area.

  • External competitors: They are not normally in competition with you, but they can become so if circumstances change.
Starting-Business

How to Do a Competitive Analysis

You will build a more knowledgeable and productive marketing strategy if you know how to perform a competitive analysis. Monitoring the industry’s competition allows you to see the competitive landscape clearly, where your brand fits in it, and what you need to do to stand out and succeed.

Zen Malik will take you through the idea and advantages of a competitive analysis, as well as how to conduct one and share competitor analysis resources to assist you.

What Is the Aim of a Competitive Analysis?

A competitive analysis is a technique that identifies your competition and compares their brands, positioning, strengths, and weaknesses to your brand. It’s a form of study that can assist you in answering competitive research questions such as:

What is the status of our brand?

  • What should we do that is similar to what our competitors are doing?
  • What should we do to put ourselves apart from the competition?

  • What opportunities do we have in our market?

  • What should we do to outperform our competitors?

  • Where do we need to target our efforts?

competitor-analysis

Simple Steps to Conduct a Competitive Analysis

Zen malik put together this guide to help you learn how to perform a competitive analysis. It discusses what to do at each stage, what competitor analysis tools you can use to discover the data, and how to use the data to guide your marketing plan.

Identify your competition

You can only perform competitive analysis in marketing if you know who your competitors are. Start by researching your industry to identify top businesses and leading brands.

Compare marketing positioning

take out the list of your competitors from search engine results and analyze them .what marketing they are doing what kind of marketing plan what type of keywords are giving most of the benefits.

Compare site traffic and performance

Then, compare the impact of your competitors’ websites to the one of your own and those in your industry. Collect information about how users interact with other websites.

Compare keywords

Analyze your web presence in comparison to competitors by examining competitor keywords. Conduct a keyword testing to identify which organic keywords are the most effective in driving traffic to their website. Also, take a look at the paid keywords they use and see what terms they are willing to pay to advertise.

Compare backlinks

Examining the rivals’ backlink portfolio is another way to assess their online authority. Compare the number and quality of backlinks pointing to your site versus those pointing to your competitors’ sites. Also, take a look at the connecting sites shared by your rivals. If your rivals have links from the same website as you, you can try to get a connection from the same website as well.

Compare the performance of SEO

You’ll be able to understand whether and how your on-page, off-page, and technological SEO health is impacting your ability to succeed in search by using SEO as a benchmark in your competitive analysis.