Why Competitor Analysis is important for business development

Competitor analysis is very essential for the growth of your business.

It helps you to understand your target audience’s needs, to know more about the advantage of your market competitors, why they had one more step forward faster than you?

What new actions competitors do?

The deeper competitor research you do, the more success in your business you will get. 

By gathering more information about your competitor, it will support you to know where is the weak points, what efforts you need to do to improve your products and grab the attention of your potential customers.

To know more about this critical issue, you could listen to our webinar about competitor analysis.

Now, let us know more about the meaning of competitor analysis:

It is a system that provides you with your current position regarding other market competitors.

It supports you with the required data and information, on which you could design your new strategy.

It gives you a clear vision for your business plan, you’ll be positioned to outshine your rivals and draw loyal customers.

However, there are some vital tools that empower your competitor analysis such as planning, research, and honest introspection. Moreover, Competitor analysis is essential to your marketing success and the first step to earning a larger slice of the market share.

Why is competitor analysis important?

Besides it helps in the development of your business, it adds more other features and benefits in running regular competitor analysis for customers are:

– The competitor analysis helps in determining the products and services of your market competitors and know their features.

– It gives you updated data about your market competitor.

– It gives you the opportunity to understand what your target audience wants or talking about, understand your market from your customers’ perspective.

– You could now the common language of your potential customers, and how you interact with them through social media platforms.

– You could identify customer priorities, threats that you might face in the future, how you could work on mitigating them earlier, it will lead to effective results in a competitive edge over others in your sector.

– It is a good opportunity to recognize how you can enhance your own business strategy.

Here are some steps to enhance your competitor analysis

1- Narrow the gap with your competitor:

To get excellent results from the competitor analysis, you have to compare yourself with other market competitors to know how you can out-do your competitors in these areas to keep your customer’s attention.

Three items you have to keep following during your analysis

(services – target audience – operating process).

Besides, don’t think about direct competitors only, because there are also indirect competitors, Substitute competitors when another company offering a product or service to your customers that you also provide.

To Find your market competitors,

– Use keywords that describe your company in a Google search. Try to search every term and combination of terms you can think of, don’t forget to include terms that cover your indirect competitors as well.

– Ask your sales dept. about several competing organizations, why customers purchase their products.

Before starting your competitor analysis, you have to identify your top five direct competitors.

Put yourself in the customer’s shoes, think about the companies your customers would choose if they weren’t buying from you.

For deep analysis for your market competitor strategy, you could contact their current and former employees.

They provide invaluable insight into how a competitor’s business strategies, best practices, and potential pitfalls.

2- Review your competitor strategy:

I mean here the content they use to attract other customers or lead new generation, convert prospects?

What you want to focus on is the number of posts they publish, the quality of it, the language they use?

And compare to your content strategy.

There are multiple content strategy you could search in such as:

Blog posts, Case studies, Podcasts, Webinars, Videos, eBooks.

Blogs could contribute to the enhancement of both content strategy and SEO.

3- Competitor analysis SWOT:

At the last two steps, you’ve identified your main competitors, analyze their capabilities.

Now you could use SWOT analysis which focuses on four sectors’ strengths, weaknesses, opportunities, and threats.

For each competitor, design a table and divide it into four equal parts.

The top two quarters contain strengths and weaknesses refer to real assets and tangible factors that affect a business, the bottom two contain opportunities and threats that refer to external factors that can positively or negatively impact a business.

4- Determine SEO competitor analysis:

It is an essential part of your overall competitor analysis and will help you to know the most keywords for the traffic of your competitors’ websites, the ranking of your competitors on search engines.

There many different SEO competitor analysis tools it will help you to identify which search terms drive the most traffic for your competitors compared to your website, among other useful data.

How Often you should conduct a Competitor Analysis?

It is important for the growth of your business to conduct competitor analysis anytime one quarter or one time annually.

However, the type of your business controls the number of times you do the competitor analysis.

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