A competitor analysis is a process of researching and evaluating your competitors to understand their strengths and weaknesses, as well as your own. It can help you identify opportunities and threats in the market, as well as improve your product, marketing, and sales strategies.
Here are some common steps that you can follow:
Start with a competitor overview. List your main competitors and their basic information, such as their products, target market, market share, pricing, and distribution channels. You can use a table or a chart to organise this information.
Conduct market research to uncover customer personas and industry trends. Find out who your ideal customers are, what their needs and preferences are, and how they perceive your brand and your competitors. You can use surveys, interviews, focus groups, or online tools to gather this data. You can also research the current and future trends in your industry, such as the market size, growth, opportunities, and challenges.
Compare product features in a feature comparison matrix. Analyze your competitors’ products and services and how they compare to yours. You can use a matrix or a table to list the features and benefits of each product, as well as the ratings or reviews from customers. You can also include any unique selling propositions (USPs) or differentiators that set you apart from your competitors.
Summarise your strengths and weaknesses with a SWOT analysis. A SWOT analysis is a tool that helps you evaluate your strengths, weaknesses, opportunities, and threats in relation to your competitors. You can use a diagram or a table to list these factors and how they affect your competitive position. You can also use a SWOT analysis to identify your goals and strategies for improvement.
Show where you fit in the competitive landscape. Based on your competitor analysis, you can create a positioning map or a perceptual map that shows how your brand and your competitors are perceived by customers on different dimensions, such as quality, price, innovation, or customer service. You can use this map to see how you can differentiate yourself from your competitors and appeal to your target market.
We hope this helps you create a comprehensive and effective competitor analysis. If you need help, please contact us at www.createabusiness.com.au
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