Why You Need a Competitor Analysis
Recently, a business owner posted on social media about dealing with intense competition in their field. They stated - “Unless you’re selling technology from Area 51 with an exclusive patent, you have to face competition in today’s world.”
Irrespective of the industry or size and scale, no business operates in a bubble. If you’re a business owner, you have competition; in most cases, it’s pretty stiff. However, while 90% of Fortune 500 Companies use competitive intelligence to gain an edge, small businesses are still warming up to this idea of competitor analysis.
In this blog, let’s go over what are the benefits of competitor analysis in developing a marketing plan -
5 Not-to-Miss Benefits of Competitor Analysis
Here’s why competitor analysis is an integral part of a business plan -
Learn from Your Competition's Successes (and Failures)
Competitor analysis allows you to learn from the successes of others. Identify new opportunities and strategies to implement in your business by studying what your competitors are doing well.
For example, if your competitor has a tight-knit community, you may want to invest more resources in building your loyal following.
Also, most importantly, track their mistakes so that you know what not to do in your business’s future.
Identify Industry Trends
You can gain insight into where the industry is headed by watching your competitors and ensuring your business is positioned to capitalize on new opportunities.
Let’s understand it with a competitor analysis example - you may consider offering more sustainable products within your product line if you observe that your competitors offer eco-friendly products.
Benchmark Your Prices
Another crucial benefit of competitor analysis is that it helps determine the ideal pricing strategy for launching a new product or service. Studying the prices your competitors charge can help you position your business to attract more clients by keeping your costs competitive.
So, if your competitors are charging significantly more, you may want to consider lowering your prices to attract more price-sensitive customers.
Differentiate Your Business
Find ways to differentiate your business from the competition to succeed in any industry. It’s where competitor analysis plays a pivotal role. It allows you to determine areas where your competitors are weak, so you can focus on those and set your business apart.
Must Read: Savvy Business Owners are All Using this, Don’t Miss the Boat!
Monitor Your Competitors' Movements
Do you wish to stay one step ahead of your competition? If yes, keep an eye on their movements through competitor analysis.
Monitor your competitors' activities to stay informed about new products, promotions, and other developments that may impact your business. It allows you to quickly adapt to any changes in the dynamic market and keep your business competitive.
In conclusion, competitor analysis is a powerful business tool that can help you thrive in a competitive marketplace. The competition is fierce, but with competitor analysis on your side, you'll be able to rise above it and unlock new heights for your business.
If you’re wondering how you would analyze the competitive environment for your business, get help from Walibu. We’re a full-service digital marketing agency helping small businesses kick-start their online marketing journey with strategic competitor analysis.
Speak to our digital specialists today at (916) 358-3950 to develop scalable marketing plans for your business.