Nearly all (92%) of stakeholders at large companies say competition intelligence is critical to their future success. Additionally, one study found that 72% of executives worry about digital disruption from competitors with better online tools.
What Is a Competitive Analysis?
A competitive analysis assesses the strengths and weaknesses of your existing and future competitors. It gives you a firm foundation on how to disrupt competitors and defend against new and existing companies offering the same products and services.
A competitor analysis includes information needed to assess the strengths and weaknesses of your company, including online reviews and social media content, as well as the competition. By partnering with a digital marketing company, you can focus on local or regional competitors and use the results to create a more effective marketing plan.
Why Should You Do a Competitor Analysis?
As a business owner or marketing manager, you’re probably juggling several things at once all the time. However, a competitive analysis can help you determine where to best allocate your time. A competitor analysis will accomplish the following:
- Identify your strengths and weaknesses
- Identify the strengths and weaknesses of competitors
- Provide a better understanding of the market
- Indicate industry trends
- Identify benchmarks for future growth opportunities
Why Is It Important To Understand the Competition?
By studying the strengths and weaknesses of your competition, you can strengthen your business practices. This gives you the information needed to focus on areas of weakness in your customer outreach strategy. Additionally, you can draw conclusions from the results of a competitive analysis that will help you shape your marketing, product development and business positioning.
Understanding your shortcomings can also help you better meet customer expectations. If your customers prefer the competitor due to product performance or customer service, you can work on the appropriate areas to gain a competitive advantage.
How Can a Competitive Analysis Help You Understand Industry Trends?
A competitot analysis does more than identify competitors. It gives you a window into local, national and global industry trends. If you don’t know who your competitors are, how can you gain market share?
When you work with the right digital marketing firm, you receive a thorough assessment of companies that pose the biggest threat to your growth.
By giving you a peek at where the industry is headed, a competitive analysis allows you to create a unique marketing strategy. This approach is far more effective than merely copying what your competitors are doing.
What Are the Benefits of a Competitive Analysis?
A competitive analysis gives you the edge because it allows you to develop unique ways to meet your customers’ needs. If you want to focus on areas where your business is doing well, the competitive analysis can provide you with current trends to stay ahead of other players in the market.
Complete a competitive analysis to help your company progress if growth has stagnated or competitors are winning over your customers. Be sure to include competitor features, pricing, differentiators, market share, strengths, weaknesses, culture, geography and customer reviews.
Don’t forget to include your own company in the analysis.
Where Can You Get the Most Effective Competitive Analysis?
Choose a marketing company that has broad experience with clients in your industry. You also need the right partner to produce an analysis that correctly identifies gaps in your marketing strategies.
Contact Kick Digital Media today to get started on a competitive analysis to help your company develop an effective marketing strategy.