One of the keys to success is being able to differentiate from the competition. The process starts with analyzing your competition. Read on below to find how why competitor analysis is important, how to do one, and how you can then use that analysis to continue growing your brand.
The Importance of a Competitor Analysis
If you are always on the lookout for growth opportunities for your business, then you want to keep a close eye on your competition. A competitor analysis can help you do just that.
It is important because it helps you understand your competitor’s strengths and weaknesses compared to your own. This kind of information helps you find a gap in the market that your business can fill.
It will allow you to gain an understanding of how your existing customers rate the competition, provides you with the chance to develop more effective strategies within your target market and provides you with strategies on how you can expand your business into a new market.
How to Do a Competitor Analysis
To begin, identify the current and potential competition. Next, look at their business strategies. You can then create a grid that highlights the key assets and skills you and your competitors have in specific areas. A few areas to include in your analysis are product, distribution, pricing, promotion, and advertising.
Using Your Analysis
Now that you have all this vital information, you can begin to identify market gaps, follow through with product development, spot new market trends, and follow through with better marketing practices. With your competitor analysis, you can better gauge what the competition is up to so you can find ways to improve your own business and develop a more competitive strategy.