Competitive analysis

Competitive analysis is a critical step in the market-driven decision making process. By assessing what your competition is doing and how they operate, you can gain valuable insights that help you develop a competitive edge.

It involves gathering & analyzing data on competitors while understanding their strengths, weaknesses, strategies, products & services, as well as their customer base.

A Scenario : Competitive analysis

John is the CEO of a green-friendly startup that operates in the e-commerce space. While the company has seen success over the past year, with rising competition, John is worried about how it will fare against its rivals in the future. He is looking for ways to stay ahead of his competition and ensure steady growth of his business.

John wanted to gain improved insights on the competitive landscape, so he hired a market research firm to do an in-depth competitive analysis. This involved looking into details such as products, pricing, promotional tactics and targeted customers of his rivals.

After a few weeks of research, the firm gave John an all-encompassing report on the competitive landscape. According to the report, there were numerous companies that operated in the same field as them but with greater size and customer base.

Using the insights from his competitive analysis, John identifies opportunities for improvement & differentiation for his business. He chooses to focus on creating a strong brand reputation & introducing environmentally friendly products to give them an edge in the market.

Following these changes, John’s startup experienced a noticeable boost in sales and market share. This has allowed it to become better established in the market, resulting in additional customers and investors.