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How well do you know your competitors? Are they working on anything new? Do you know anything about the strategies they’re using for success? If you don’t then maybe you should. Conducting a competitor analysis is vital for not only matching your competitors, but giving you an edge. When it comes to analysing competitors, the importance of being proactive rather than reactive is vital to your business success. Here at Kayo Digital, we are always looking for growth opportunities whilst keeping an eye on our competitors, and this is where an effective competitor analysis can work. If you aren’t already. You should be doing the same. But why is it useful and how do you conduct one? We’re about to tell you how, so take some notes. What is the point in doing a competitor analysis?The purpose of a competitor analysis is to understand your competitors’ strengths and weaknesses in comparison to your own and to find a gap in the market. A competitor analysis is important because:
The importance of comparing yourself to your competitorsBefore you can start you need to understand who your competitors are. But how do you do this? The best way to determine if another business is a key competitor you need to ask yourself:
You’ll have the competitors you typically think of locally, but also those competing for the same search terms as you too. According to Study.com there are 3 main types of competitors: Direct competitors:“A direct competitor offers the same products and services aimed at the same target market and customer base, with the same goal of profit and market share growth. This means that your direct competitors are targeting the same audience as you, selling the same products as you, in a similar distribution model as you.” Indirect competitors:"An indirect competitor is another company that offers the same products and services, much like direct competitors; however, the end goals are different.” Substitute competitors:“Another company offering a product or service to your customers that you also provide.” Once what sort of competitors you would like to
be compared against has been considered, it is important to understand how you stand out. That’s the next part of the analysis. Questions you need to be Asking in your Competitor AnalysisThe Product
The Brand
Marketing
Technology
Customers
Then, add anything else that you think would be useful in formulating your strategy. Now you can begin to identify what your competitive advantage is (if you have one), where you need to improve and how you can act on this information. How Often Should I Conduct a Competitor Analysis?To stay ahead you will need to continue to understand your customer requirements while keeping up with the latest industry trends. Whilst this can differ depending on the industry, we recommend conducting a competitor analysis anytime from once a quarter to once a year. This gives you time to react to your discoveries and benchmark your progress. Concluding RemarksIn an ever-changing industry, there are always new innovative ways to expand your strategy to stay ahead of your competitors as well as keeping the attention of your customers. The importance of a competitor analysis cannot be over-estimated. Analysing your competitors is a simple, yet effective marketing tactic to make sure you are keeping up and matching the efforts of others in the industry. This prevents you from getting ‘lost in the noise’ of your competitor’s efforts, so you can implement a marketing strategy that will strengthen your online position and expand your online footprint. If you're looking for assistance in conducting a competitor analysis as part of your wider marketing strategy, Kayo Digital agency in Kent can help. We offer Kent digital marketing services, as well as SEO, software and app development, website hosting, cutting-edge web design and more. To find out how we can help your business, don't hesitate to get in touch. What is strategic analysis and why is it important?Strategic analysis refers to an evaluation of an organization's work environment. This work environment generally defines how the organization operates its business. It helps to determine the mood functioning of the organization and whether the goals and objectives set by the organization can be met.
What is strategic analysis?Strategic analysis refers to the process of researching an organization and its working environment to formulate a strategy. There are many other definitions of strategic analysis with a different perspective. But they all involve a lot of common factors.
Why strategic analysis is important in business strategy?It gives a company the ability to understand its environment, and formulate a strategic plan accordingly. Strategic analysis is paramount in any organization because it provides the context and backbone upon which the strategy and overall position of the business is formulated.
Why is analysis of the environment important for effective strategic management?Environmental Analysis gives the strategic manager time to anticipate opportunities and to plan alternative responses to those opportunities. It also helps them to develop an early warning system to present threats or develop strategies, which can turn a threat to the organizations advantage.
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