Competitive matrix definition - A competitive matrix is an industry analysis tool used that visualizes your competitive analysis. There are different kinds of competitive matrices to display different parts of your competitive analysis. You can use a competitive matrix to identify new opportunities for innovation, marketing opportunities, and new product opportunities.
You can use a competitive matrix to compare your business to the rest of your competitors and displays your competitive advantage in an easy-to-read format. They can help you see your company’s competitive landscape, opportunities to make your services and products stand out from the rest of the market, and your position relative to the rest of the competition.
We know companies that design and provide unique products earn more money. So you’ll want to find all the possible ways your products can stand out from the competition. That’s why competitive matrix analysis is so important. Visualizing your competitive analysis helps you identify your best path toward successful products.
When you consistently look for new ways to make your goods and services more distinctive and unique and provide more benefits to your customers, you keep your business on the right track for growth.
Competitive matrix analysis has many benefits. Here’s what a competitive matrix can help you do:
Identify what makes your product, service, or brand unique.
Analyze competitors based on their strengths and weaknesses.
Focus on the competitive market segments and niches.
Discover market opportunities and threats to your current position.
Uncover gaps in your market niche.
Optimize your content, marketing, and offerings.
Support the development of new features and tools.
Improve and review your pricing strategy.
Develop a long-term growth plan.
SWOT Analysis: SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. This competitive matrix format can help you evaluate your business from all sides.
Porter’s Five Forces - Porter’s Five Forces helps you analyze your standing in the market and plot out the threat of new entrants, the intensity of existing competitor rivals, the threat of substitutes, the bargaining power of customers, and the bargaining power of suppliers.
Gartner’s Magic Quadrant - Gartner’s Magic Quadrant gauges companies based on their ability to execute and complete their vision. It divides the market into four quadrants: challengers, leaders, visionaries, and niche players. You can identify your closest competition by plotting out all the players in your market.
Competitive positioning matrix - A competitive positioning matrix is similar to Gartner’s Magic Quadrant but lets you choose your quadrant categories. This lets you visualize your market position based on specific areas.