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Competitive Analysis

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What is competitive analysis?

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Definition of competitive analysis

Competitive analysis is the process of identifying competitors and evaluating their strategies in order to determine their weaknesses and strengths in order to better your own company.

As the name states, competitive analysis is simply analyzing your competitors in order to better your own company.

Advantages of competitive analysis

Just as we mentioned above, this information and data is being gathered so that you can use it for your own advantages. Knowing the weaknesses of your competitors (something like bad customer service) can help you attract frustrated customers in the future.

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But more than that, there are plenty of reasons why you should be doing frequent competitive analysis:

  • Get benchmarks to help you measure your own success and growth.

  • Improve your brand by capitalizing on their weaknesses and building on their strengths.

  • Discover new market areas that aren’t covered by any competitors.

There are loads of reasons any business should be doing a competitive analysis. Perhaps the best reason of all is to simply know what you’re up against.

Who uses competitive analysis?

Truthfully, all businesses should be conducting competitive analyses. As long as you have competition, you have a use for competitive analysis.

Competitive analysis example

Depending on the industry, an analysis can be very different. For this example, we’re going to use a generic SaaS. There are a few things that you could easily track in order to have the upper hand:

  • Site loading speed

Loading speed is incredibly important. Customers sometimes won’t tolerate even the slightest hiccup.

Understanding how many people visit their main site each day is incredibly valuable.

  • Traffic sources

Where is this traffic coming from? What works well for them might very well work for you, too.

There are a number of simple metrics you can track through the competitive analysis that will give you very useful data.

General FAQ

How is competitive analysis valuable to startups?
For startups, competitive analysis is valuable for predicting your competitor’s reaction to you entering the market. It allows you to get a firm hold of the market, and understand your next moves as well as everyone else’s.
What is competitive analysis in marketing?
Competitive analysis is a crucial part of any marketing strategy. Documenting your competitor's pricing strategy and market strategies will help you make more strategic decisions and get a better grasp of the current market.

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