If the thought of doing a competitive analysis makes you want to walk out of the office and never come back, we get it. It is such a time-consuming task that can get complicated and boring quite easily. If you have never done any before or simply hate the thought of doing it, lucky for you we have compiled an easy 6 step guide to completing a competitive analysis.
First of all, before we begin you need to understand what a competitive analysis is. It is essentially a way for you to spot your competition and to know how they have positioned themselves, presenting themselves in the market, and compare your strengths and weaknesses to theirs.
Now that you have a basic idea of what it is letโs talk about the 6 steps.
๐ฆ๐๐ฒ๐ฝ ๐ญ : ๐๐ผ๐ป๐๐๐ฟ๐๐ฐ๐ ๐ฎ ๐น๐ถ๐๐ ๐ผ๐ณ ๐ฐ๐ผ๐บ๐ฝ๐ฒ๐๐ถ๐๐ผ๐ฟ๐
This list should include anyone and everyone who you think is your field doing the same thing as you. It should also include anyone who could be a potential competitor. To give you a rough idea, if your company is a traditional athleisure brand your competitors could range from reebok, Adidas and Nike.
๐ฆ๐๐ฒ๐ฝ ๐ฎ : ๐๐ถ๐๐ถ๐ฑ๐ฒ ๐๐ต๐ฒ๐บ ๐ถ๐ป๐๐ผ ๐๐๐ผ ๐ด๐ฟ๐ผ๐๐ฝ๐
These two groups are your current competitors; brands that are of similar backgrounds and aspiring competitors; brands that you wish to compete with. Based on the previous example, let us take those three traditional athleisure brands as your current competitors. Now, the brands you wish to compete with could be luxury activewear brands.
๐ฆ๐๐ฒ๐ฝ ๐ฏ : ๐๐ผ๐๐ป๐น๐ผ๐ฎ๐ฑ ๐ฎ ๐ฐ๐ผ๐บ๐ฝ๐ฒ๐๐ถ๐๐ผ๐ฟ ๐ฎ๐ป๐ฎ๐น๐๐๐ถ๐
A quick search on google will help you find hundreds of pre-made competitor analysis templates. We recommend using the template on smartsheet.com. It is free and easy to work your way through.
๐ฆ๐๐ฒ๐ฝ ๐ฐ : ๐ก๐ฎ๐๐ถ๐ด๐ฎ๐๐ฒ ๐๐ต๐ฟ๐ผ๐๐ด๐ต ๐๐ต๐ฒ ๐๐ฒ๐บ๐ฝ๐น๐ฎ๐๐ฒ
This is when you start to analyze the competitors that you have listed in step 1. Be thorough and look at every aspect of that brand as this is the most important step in competitor analysis. From their mission and goals to their logos and visual aspects, make sure to fill every detail listed in your template.
๐ฆ๐๐ฒ๐ฝ ๐ฑ : ๐๐ ๐ฝ๐ฟ๐ฒ๐๐ ๐๐ผ๐๐ฟ ๐ผ๐๐ป ๐ถ๐ฑ๐ฒ๐ป๐๐ถ๐๐
Think of your company from all aspects; the good and the bad. Treat your brand as a competitor and document all aspects of your brand. Keep an open mind as you list out things that the brands you aspire to compete with doing and qualities you want to avoid that the brands you compete with do. For example, you might want to compete on pricing with Nike, but you might who their brand affiliates are so that is something you would want to avoid.
๐ฆ๐๐ฒ๐ฝ ๐ฒ : ๐๐ถ๐ป๐ฑ ๐๐ผ๐๐ฟ ๐ฐ๐ฎ๐น๐น๐ถ๐ป๐ด ๐ผ๐ป ๐๐ต๐ฒ ๐๐ฝ๐ฒ๐ฐ๐๐ฟ๐๐บ
When you have an overall idea of every brandโs image, grab that whiteboard and start mapping out where you lie on that Cartesian chart. Plot out several variations based on multiple polarities; for example low quality vs high quality or Niche vs. comprehensive.
As you have reached the end of conducting a competitor analysis you should now have a better undressing of your competition as well as an understanding of what your company excels at. Finally, you should be able to answer this simple yet important question; Why should a customer choose your products or services instead of the brands you are competing against.
