How do you analyze your market to stay competitive?

1 Define your market

The first step is to define your market in terms of size, segments, geography, and growth potential. You can use secondary sources such as market reports, industry publications, and online databases to gather relevant data and statistics. You can also use primary sources such as surveys, interviews, and focus groups to collect feedback and insights from your target customers and stakeholders. The goal is to narrow down your market to a specific and realistic scope that matches your business goals and capabilities.

2 Analyze your customers

The next step is to analyze your customers in terms of their needs, preferences, behaviors, and pain points. You can use tools such as customer personas, value propositions, and customer journeys to create detailed profiles of your ideal customers and how they interact with your products or services. You can also use methods such as segmentation, targeting, and positioning to identify and prioritize the most attractive and profitable customer segments and how to differentiate your offerings from the competition.

3 Analyze your competitors

The third step is to analyze your competitors in terms of their strengths, weaknesses, strategies, and performance. You can use tools such as SWOT analysis, Porter's five forces, and benchmarking to evaluate your competitive position and advantage in the market. You can also use methods such as competitive intelligence, mystery shopping, and online reviews to monitor and assess your competitors' actions and reactions in the market.

4 Analyze your industry

The fourth step is to analyze your industry in terms of its structure, dynamics, and trends. You can use tools such as PESTEL analysis, scenario planning, and trend analysis to identify and evaluate the external factors that affect your industry and how they might change in the future. You can also use methods such as industry analysis, market mapping, and gap analysis to understand and anticipate the opportunities and threats that arise from the industry environment.

5 Analyze your business

The fifth step is to analyze your business in terms of its capabilities, resources, and performance. You can use tools such as VRIO analysis, balanced scorecard, and KPIs to measure and improve your business value and efficiency. You can also use methods such as SWOT analysis, BCG matrix, and Ansoff matrix to assess and optimize your business portfolio and growth strategies.

6 Apply your findings

The final step is to apply your findings from the market analysis to your business development strategy. You can use tools such as SMART goals, action plans, and feedback loops to translate your insights into actionable and measurable steps. You can also use methods such as experimentation, validation, and iteration to test and refine your assumptions and hypotheses in the market.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?