Businesses these days are starting to recognise the importance of performing competitive analysis. Competitive analysis is the process of finding out the strengths and weaknesses of your competitors in the market.
Moreover, competitive analysis also helps you know strategies that will provide your business with clear advantage over the competitors. It also keeps you aware with the trend that can be developed to foil competition from entering the market, and any weaknesses of the competitors that can be exploited for getting edge over the competitors.
The first step in competitive analysis is to categorise your current as well as your future competitors. You can either look at the market from the customer’s viewpoint and group all your competitors by the degree to which they compete for the market share; or you may group competitors according to their various market oriented strategies so you understand what motivates them.
Once the competitors are categorised, you can now start to evaluate their strategies and determine the most vulnerable areas of the competitors. This can be done through an assessment of the competitors’ weaknesses and strengths.
Not only that you can determine your competition’s strength and weaknesses, but you can also know the current products in the market, what has to improve and focus on those products, how you can promote them, etc.
For more competitive analysis, read this: http://www.business2community.com/strategy/step-step-guide-conducting-competitive-analysis-01841377#ugu8ZwypUwSuQWLo.97