What are the most effective ways to ensure your competitive analysis is thorough and accurate?

Market Research: Thoroughly investigate industry trends, customer behavior, and emerging players. Competitor Profiling: Create detailed profiles, covering strengths, weaknesses, opportunities, and threats. SWOT Analysis: Evaluate internal strengths and weaknesses alongside external opportunities and threats. Customer Feedback: Incorporate customer reviews and feedback for insights into competitor strengths and weaknesses. Benchmarking: Compare key performance metrics against industry standards for context. Continuous Monitoring: Regularly update your analysis to adapt to dynamic market changes. #CompetitiveAnalysis #BusinessIntelligence #MarketResearch

The point that we should pay attention to is: have we chosen the right competitors? First of all, we need to determine who we are really competing with. This kind of comparison is more accurate. But how do we do this? Our competitors are divided into two categories: direct and indirect.

begin by obtaining thorough information from a variety of sources, including industry reports, financial statements, and customer reviews, about the products, tactics, and market positioning of competitors. Interview stakeholders and industry experts in-depth to obtain insightful opinions and insights that might not be easily obtained through conventional means. Finally, to ensure that your insights are still applicable and useful for making strategic decisions, update your competitive analysis on a regular basis to keep up with changes in the market and emerging plans.

Always start by thoroughly analyzing the competitor set you have identified. Multiple times I have seen people select companies that are not a proper competitor. I usually create a funnel that includes direct competitor in terms of size, products and geographies. One step up - larger/bigger players than my base company and one step down - smaller players than my base company.

I will make one absolutely critical point that's invariably overlooked. Good advice says analyse the competition thoroughly. However, to beat the competition you need to analyse from the perspective of clients and prospects, NOT your own perspective. You have in-depth knowledge and will do thorough analysis, that's irrelevant if clients/prospects don't do the same. Clients/Prospects will judge you and your competition from their own perspective; you must do the same. Wear your client's/prospect's shoes. For example what information will they most likely have access to; which competitors will they talk to; what news articles will they read etc. What counts is not the actual competition it's the client perspective of the competition.

My advice here is simple; triangulate your data. Seek out verifiable sources of quantitative and qualitative data and cross check. Make sure you’re aware of your own biases in selecting sources. Consider buddying up with another to ensure you’re creating a truly holistic view.

Most of the time, people rely on single or very few data sources. Gathering data from a variety of sources is essential for a balanced view. Utilize industry reports, financial statements, customer reviews, and social media. This multifaceted approach helps in understanding your competitors from different angles.

4 things to keep in mind while choosing Data sources for the analysis: 1. Reliability: Rely on reputable industry reports and established market research firms to ensure data accuracy. 2. Timely Data: Prioritize recent information to capture current market dynamics and competitor activities accurately. 3. Granularity Balance: Find the sweet spot between broad industry trends and specific competitor insights for a comprehensive understanding. 4. Data Diversity/Triangulation: Combine primary sources like interviews with secondary sources to cross-verify information and obtain a holistic view. Have a happy consulting career!

Depending on the scope of the analysis will help guide you to the most relevant sources of information. Whilst taking data from company websites may be the quickest and easiest route to information, in many occasions it can be biased and paint a “nicer” picture. Interviews with 3rd parties and independent bodies can prove more fruitful.

I like to include a very broad range of sources as a procurement consultant. Eg choosing suppliers for an RFP. There will be many suppliers you know who can do the job and automatically make your list —but it’s worth extending the supplier list to include diverse or small owner operator suppliers that you would like to develop to become a regular supplier.

You can analyze the data in so many ways. What matters is what the expected outcome is by your client and how the data can further ensure success in that regard. Data, metrics, objective information and visuals usually work best to gaining further buy in from your client on the path on which you are leading them and can provide the tools needed for them to release the reins to let you ensure a successful outcome.

I'd suggest to do an 'analysis dump ' on a whiteboard or similar to start. Ideally, you will see if there are gaps in your scan (as compared to your original goals). I would plan for a few iterations of scan-analysis.

Consistent data, same time periods and from a variety of broad sources eg business units large and small in your company will ensure your comparison is thorough and meaningful

Very often data tells more than one story. Hence, the analysis must allow room for different views without dropping the logic and with a contingent approach to account for intangible variables. They will serve as axes of review and readjustment when they crystalized over time.

Set your milestones and continually compare results with milestones. When results differ markedly form expected milestones, determine why and then decide whether to revise your original plans/strategies and milestones. Furthermore, always look ahead and start planing your next steps/strategies to try to achieve your next goal. Money never sleeps. Competition never sleeps.

The highly critical step is to consult with Experts: Sometimes, it's beneficial to consult with industry experts or market analysts who can offer deeper insights or different perspectives on your data.

update should be of two types, the first update has to be planned to consolidate and validate assumptions as they mature, the second type of update is called on by major elements change and should run in a fast track room.

5 best practices for conducting competitive analysis: 1. Holistic Approach: Consider a 360-degree view, incorporating market trends, competitor actions, and internal capabilities for a comprehensive analysis. 2. Continuous Monitoring: Establish a dynamic system to track changes in the competitive landscape 3. Scenario Planning: Anticipate various industry scenarios to prepare for uncertainties and adapt strategies accordingly. 4. Cross-functional Collaboration: Engage teams across departments to gather diverse perspectives and insights for a richer analysis. 5. Actionable Insights: Prioritize findings that directly inform strategic decisions, ensuring the analysis adds tangible value to the business. Have a happy consulting career!

Competitive analysis is incredibly valuable for a company specifically when a key competitor is the “alter ego” of a company. Very often, having a strong competitor is a blessing in disguise, as it pushes a company to take their strategy and performance to the next level. Think of Coke and Pepsi, or GE and Honeywell, or Google and Meta, or again Nestle and Mars. In this cases, it is worth spending a lot more time and resources on these close competitors to further improve against them and learn from them. At the same time, very often in the long term is also key to watch for potential industry disruptions, particularly when technology or business model innovation can change the game of an entire industry.

Netflix CEO Reed Hastings says "Sleep is our competition". Always consider indirect (overlooked) competitors and your customer's behavior patterns i.e. what are their alternatives, and when/ why do they choose them over your company. This can help differentiate your product/ offering along those parameters.

Other things to consider include market forces, internal pressure or competing agendas that could impact your competitive analysis, plus the decision making process after you have completed your analysis. What resources are required to action any decisions or recommendations. Who needs to approve, contribute or veto final decision. Should you socialize a draft outcome of your competitive analysis before seeking a decision?

By defining a clear scope, identifying both direct and indirect competitors, and gathering diverse data from financial reports, customer feedback, and social media. Conducting a SWOT analysis for the business and competitors. Utilize benchmarking against industry standards, monitor market trends and changes, and analyze competitor pricing and positioning. Assess market share, growth rates, and technological innovation. Collaborate with internal teams, industry experts, and customers for diverse perspectives. Regularly update the analysis to adapt to evolving market conditions and maintain accuracy. This holistic approach ensures a thorough understanding of the competitive landscape and informs strategic decision-making for the business.