There is a certain form of communication between a company and customers which is called marketing. The main goal of marketing is selling the product or service to current or potential clients. However, it happens, that despite constant efforts business does not manage to be profitable. There are many reasons why startup may fail but one of the most important is the inability to fight competitors. The article will serve as an excellent guide for those who on their way to success need to get familiar with some basis of competitive market analysis.
Competitive analysis is the first step in the marketing struggle
Before conducting competitive market analysis you need to know who competitors are. Actually, it may be any company that offers a similar product or service. Competitor analysis makes it possible for a company to flag competitors in their market and invent the ways to compete against them. First of all, competitive analysis is very important part of the marketing plan of your company. With the approach of competitive assessment you may find out what makes your product or service more exclusive and, consequently, what actions you need to take to captivate your target market. Competitor analysis is a part and parcel of successful business development and it should be your first step before developing marketing strategy of the product.
Correct information is the key to a profitable business
Analyzing market share and growth rate of the opponents can help you extract very important information about its performance. That is said, competitors with negative or low growth rates can serve as a good source for the growth of your own business and competitors with high growth rates can notify of successful sales techniques. In conditions of fierce competition, accurate analysis and evaluation of the company’s competitive environment allow creating a sustainable competitive advantage of your own product, choosing the right communication channels and reducing operational risks.
So what is competitive analysis main goal?
To sum up, the main goal of competitive analysis of any industry or market is to obtain sufficient information about the strengths and weaknesses of the competitor, his strategy, intentions and opportunities to improve the effectiveness of your own actions. It includes a detailed study of the activities of the main players in the industry. It also comprises the analysis of prices, advertising, and assortment that gives you the opportunity to develop and improve your own marketing plan.