Identifying your competitors and evaluating their strategies to determine their strengths and weaknesses relative to those of your own product or service. (Entrepreneur)
Evaluate your competitors by placing them in strategic groups according to how directly they compete for a share of the customer's dollar. For each competitor or strategic group, list their product or service, its profitability, growth pattern, marketing objectives and assumptions, current and past strategies, organizational and cost structure, strengths and weaknesses, and size (in sales) of the competitor's business. Answer questions such as:
- Who are your competitors?
- What products or services do they sell?
- What is each competitor's market share?
- What are their past strategies?
- What are their current strategies?
- What type of media are used to market their products or services?
- How many hours per week do they purchase to advertise through the media used in this market?
- What are each competitor's strengths and weaknesses?
- What potential threats do your competitors pose?
- What potential opportunities do they make available for you?
Across the top of the paper, list the main features and characteristics of each product or service. Include such things as target market, price, size, method of distribution, and extent of customer service for a product. For a service, list prospective buyers, where the service is available, price, website, toll-free phone number, and other features that are relevant. A glance at the competition grid will help you see where your product fits in the overall market.
Source : Entrepreneur
A competitive analysis is an important part of strategic planning because it helps a business understand how its products or services compare with current and potential competitors. The article clearly explains the importance of evaluating competitors' strengths, weaknesses, strategies, market position, and business characteristics when developing a marketing plan.
ReplyDeleteThe suggestion to group competitors according to how directly they compete for customers is particularly useful because it can make the analysis more structured and easier to interpret. Gathering and organizing this information requires careful evaluation of multiple factors, and a Data Analysis Course can help learners develop the skills needed to work with and interpret business data.
The emphasis on comparing profitability, growth patterns, marketing objectives, cost structures, sales, and strategic strengths provides a practical framework for competitive research. For working with larger datasets and organizing analytical information efficiently, a Pandas Course can also be valuable for developing practical data-analysis skills.
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