The complete guide for company directors: the all-in-one toolbox
How to conduct a competitive analysis?
How to define the market and identify key success factors?
Before starting a competitive analysis, it is crucial to understand the market in which the company operates. This involves identifying direct and indirect competitors, as well as market trends. To do this, it is necessary to define market boundaries and understand customer needs. Then, it's important to identify the key success factors that shape this market.
How to evaluate direct competitors?
Once the key success factors have been identified, the company must evaluate direct competitors. This involves analyzing their products or services, their market positioning, their reputation, their pricing strategy, their marketing strategy, and their distribution strategy. It's also crucial to understand their competitive advantages to determine the challenges to overcome to stand out from the competition.
How to consider market trends and opportunities?
Competitive analysis should not be limited to examining competitors. It's also important to consider market trends and opportunities for the company. This involves looking at changes in consumer buying behaviors, technological advancements, the arrival of new competitors, or the emergence of new markets. By examining these trends, the company can anticipate market developments and determine opportunities to seize.
How to use competitive analysis to differentiate in the market?
The ultimate goal of competitive analysis is to determine how the company can differentiate in the market. To do this, it's crucial to understand the forces shaping the market, competitors' competitive advantages, and market trends. The company can then develop a strategy to stand out from the competition by capitalizing on its strengths and improving its weaknesses.
How to regularly update the competitive analysis?
Competitive analysis shouldn't be considered as a one-time task. It's essential to update it regularly to account for market developments. Market trends and consumer buying behaviors can change rapidly, so it's crucial to stay vigilant to avoid missing opportunities or getting left behind by competitors.