What are the key competitive advantages and disadvantages of your industry?

2 How to conduct a competitive analysis

Identifying your main competitors and their market share is the first step in conducting a competitive analysis. You can use online tools, industry reports, customer feedback, and your own observations to find out who they are and how they operate. Additionally, you can segment your competitors into direct, indirect, and potential competitors, depending on how closely they offer similar solutions to your target customers. To evaluate your competitors' strengths and weaknesses, you can use a SWOT analysis. This framework helps you assess the internal and external factors that affect your competitors' performance. After synthesizing your findings, you can draw conclusions about your competitive position and strategy. You can use a matrix or a chart to summarize and compare your SWOT analysis with your competitors', and a scoring system or a rating scale to rank them according to different criteria. This will help you identify the key competitive advantages and disadvantages of your industry and how to leverage or mitigate them.

3 How to use competitive analysis for strategic planning

Competitive analysis is an ongoing process that requires regular monitoring and updating. You can use it to inform and refine your strategic planning and decision making. For example, you can set realistic and measurable goals and objectives based on your competitive position and potential. Additionally, you can develop and implement strategies and tactics that address your strengths, weaknesses, opportunities, and threats, and that differentiate you from your competitors. Furthermore, you can allocate and optimize your resources and budget according to your priorities and opportunities. Lastly, you can monitor and evaluate your performance and progress against your goals and objectives, and your competitors' actions and results, and adjust and improve your strategies and tactics based on your feedback and learning.

4 How to avoid common pitfalls of competitive analysis

Competitive analysis is a powerful tool for strategic planning, but it also has some limitations and challenges that you should be aware of and avoid. For instance, it is important to keep your customers' needs, preferences, and expectations at the center of your strategic planning and competitive analysis, and to consider other factors that influence their behavior and satisfaction, such as social, economic, technological, and environmental trends. Additionally, you should not rely on outdated or incomplete information about your competitors, or assume that they will not change or innovate. Instead, you should monitor and anticipate your competitors' moves and responses, and be ready to adapt and respond accordingly. Moreover, you should not try to replicate or match your competitors' strategies and tactics, or follow their lead. Instead, focus on creating and delivering value to your customers that is unique and superior to your competitors, and seek to create and maintain a distinctive and consistent brand identity and image that sets you apart from your competitors.

5 How to get started with competitive analysis

If you want to get started with competitive analysis, you should first define your industry and market, as well as your target customers and segments. Then, identify your main competitors and their market share, and segment them into direct, indirect, and potential competitors. After that, use a SWOT analysis to evaluate your competitors' strengths and weaknesses, and compare them with your own. Synthesize your findings and draw conclusions about your competitive position and strategy, and identify the key competitive advantages and disadvantages of your industry. Use your competitive analysis to inform and refine your strategic planning and decision making, and to develop and implement effective strategies and tactics that differentiate you from your competitors. Lastly, monitor and update your competitive analysis regularly, and adjust and improve your strategies and tactics based on your feedback and learning.