The competitor analysis, refers to the study of resources, strategies, strengths, capacities, competitive advantages, weaknesses and other potential and competitive characteristics of a company, which are carried out in order to formulate strategies that allow its improvement.
Carrying out this type of analysis not only allows to prevent the strategies and actions of the competence, but also to be able to take advantage of their weaknesses, face their strengths and have as a reference their various strategies, products that give them the best results.
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Through a competitive analysis, it is possible to know what are the weaknesses that the competition has and the inability that it may have to maintain low prices and deficient attention to the customers and consequently, reduce their own prices and provide the best service to customers and thus beat the market to said competition.
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In this article you will find:
Objectives of a competitor analysis
No matter how big or small the business or company is, there are several objectives that must be taken into account when conducting an investigation to be able to analyze the competitors:
Know where and against whom to compete
The first impression is not the most important thing, it is convenient to investigate well to find out who the competitors are, who stands out the most and what are the trends that exist in the market. In that case, it is necessary to collect some questions, whose answers will allow to gather the important and necessary information for the growth of the company.
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Detect business opportunities
It is not easy, but it is probably possible to identify the type of market that is not well served by the competition.
Identify the elements that can make a difference
If the company or business enters a market where there are other competitors, it will have to offer products or services customers who are innovative and different to fully attract them.
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Avoid the reaction of the competition
Creating a business can provoke reactions from the competition and more if they lose their customers, in that case it is convenient to anticipate and prevent their reaction.
Types of competencies within the competency analysis
In order for an efficient competition analysis to be carried out, it is necessary to identify which is the competition. For this, the ideal is to differentiate the types of existing competencies:
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Direct competition
It is one that is not only within the same market, but is also disputed by the same customers. They mostly offer the same products, as is the case with florists, gift shops, among others.
In the same way, they can sell substitute products that can be a great competition and try to have the first place in the market.
Indirect competition
It refers to companies that can operate the same market and deal with the same customers, but that at the same time offer different products. In that case, the idea is not to take over those customers, but to make them understand that they can buy products from any company on the market.
Possible new entrants
Although the future cannot be predicted, any entry of a new business to the market must be taken into account to carry out an analysis of current and future competition.
Tips for an efficient competition analysis
As soon as the competition is known, the step of carrying out the analysis must be taken, following the following keys:
Verify the products or services of the competition
It refers to the properties and value of the products related to a certain company, the how they are produced, the benefits they generate and the possible long-term disadvantages they could have.
Divide sales strategies
Many times achieving the success of a product depends on its marketing and its publicity, including the different online marketing techniques, which at present tend to be forceful when it comes to achieving a position within the market.
It will improve the prices and the quantity of sales
In most markets, it is essential to offer comfortable prices to be able to compete with other brands that are within the market.
Having knowledge of the competition that a certain company has is an extremely important factor to be able to achieve the goals of its different marketing strategies.
Carrying out an analysis is a very useful factor for the company to face the competition, since it allows to obtain all the necessary information that can help to increase the growth of said company and to promote the product in a favorable way to the clients.
Therefore, it is of great benefit to develop a competitor analysis so that the brand can identify itself in the market, create new products or services, having knowledge of industrial trends, as well as promoting and selling effectively, in this way the company can be the best From the market.
