Almost every company belong to a competitive market, and that calls in the requirement of analyzing the competition. Every sector is growing as more and more people try to make a mark. You think of any industry like the automobile, electronics, FMCG, and so on, every sector is growing, and each organization is facing competition.
Irrespective of what industry you belong to, as long as it’s a monopoly, you have to consider ways to outperform your competition. However, you can only stand out when you know your game. This is precisely where competition analysis comes in the frame. Find out how and why you need to take this step.
Ways to analyze your competition
An expert SEO agency will dig deep into the following steps to help you analyze your market:
- Identify both current and upcoming competitions
To figure out current and upcoming competitors, you need to target products and services. Suppose you sell a branded sunscreen lotion, you need to know how many other people are selling sunscreen lotions.
You will find it easy to figure out how well the giants in the industry are doing. But you also need to see how many new companies have started up and what makes people buy their lotion.
You need to figure the percentage of customers preferring to buy your products against others and vice versa. It helps you know both direct and indirect competition, and that’s you how you complete the first step of the analysis.
- Find market share
The second step needs you to find out the market share. You will not know the strengths and weaknesses of your competition until you see the presence. If you manage to sell your products widely, you have to break down the region in territories. Find out the share of wallet in every province.
The process needs you to do mini market research that helps you know the sales of your competition. You can analyze if the sales happen due to quality, available, low price, and other factors.
- Perform SWOT analysis
The previous step will help you perform SWOT. The results will tell you where you stand against your competition and how well they’re doing. The process helps you set a benchmark to move ahead and know the strategies that are effective to be on top. It also keeps you away from lowering from the rank you already are in.SWOT helps you show the steps to capitalize and take the competition ahead.
- Build a portfolio for competition
After completing SWOT, you will be able to build a proper competition portfolio. It will include every product that your competitors sell along with the features, logistics, and more.
The best source that helps your portfolio is your sales force. It is always in touch with the market scenario and can quickly notify you about any changes in the market.
- Plan strategies
You will know the line of action once you create the competition portfolio. If the competition is very overpowering, you can either follow the same steps as the competitors did or get creative to offer something new in the market.
If competition is on par, you can add some more effort to outdo them. Don’t be satisfied with the average scenario as at any point your competitor can get ahead. If it is difficult to reach the top, you should try to build what you already have.
- Execute the planned strategies
Once you choose the plan of action, work on it effectively. There is no point in doing so much analyzation if you don’t plan to implement it. It is also essential to follow a contingency plan to see how your competitors react to your steps.
If they react strongly, execute the contingency plan to prevent long-term effect on brand or product. It is tough to make these strategies a hit at one go. This is also a reason why you need to consider contingency plans.
- Follow up
Statistics will help your firm make smart decisions. You need to follow up to find out both qualitative and of quantitative results, and measure the response of the strategy. Document it for the next generation of marketers, and they will be able to take cues from the right and avoid the wrong.
If your strategies get you a more extensive customer base, make sure you stick to it for a long time. You also need to follow up to find out how people respond – this step can get you the ultimate success!
No matter what strategy you follow, there will another competitor keeping an eye on you. They might also support your steps and outperform you. You need to continually keep up with such competition and find new ways to retain your customer base. Follow these steps, and you will always be on the right track.