Change. In the online world, change has become fundamental in order to remain competitive, relevant and current. And with change, comes improvement, growth and expansion. By regularly comparing your product to that of a competitor, sets a standard your business aims or maintains to meet. This standard reminds you of what you need to improve on, so as to retain market leadership.
It’s no secret that there is a countless number of businesses out there who does exactly what you do, yet tries to do it better. Why? Because ?better? differentiates them in the eyes of the public and equipts them with marketing ammunition (?why settle for less??). Differentiation comes from analyzing what your competitors are doing and how you can improve on it.
By including a regular competitor analysis in your business practice, allows you to evaluate and compare:
- The need for product development
- The need for marketing
- Your pricing model
- And the growth of your market share
A competitor analysis further brings your attention to shortcomings in your points of interaction with your customers.
- How is your product perceived by others?
- Are you a quality king or an affordable alternative?
By shedding light on your strengths, weaknesses, opportunities and threats, you identify your:
- Points of Difference (what makes you unique and preferred)
- And Points and Parity (what do you have in common with market leaders).
In a nutshell, your competitor analysis should include:
- Your swot analysis
- Your points of interaction
- Product development
- Product usability/functionality
- Marketing channels
- Pricing models
- Your plan going forward
By identifying, analyzing and implementing action points from the above, you strengthen the overall presence of your product and business and ultimately, set long-term goals with direction and drive.