How to analyze competitor’s strategy?

 In order to survive well and to win in the market, there is requirement that your product or the service should stand out of the crowd and should be better in every sense from the product or the services that your competitors are serving.

The company or the organization can make their product and the services better from the competitors by knowing the strategy of the competitors. When the organizations is informed about the strategy that their top competitors are applying to run their business, the organization will get the option to formulate a even better strategy and thus can make their product and services stand out of the crowd.

In order to analyze the strategy of the competitors, the company requires to apply the competitive analysis strategy. In this strategy, the company gathers the information related to the major competitors and then research their product and services, marketing strategy, sales, and many more. After getting the information about the competitors as mentioned above will help the organization to develop a better strategy and make their product or services different from the market and thus better performance in winning the attention of the target consumers.

For a successful business also, the organization should be aware of the competitor’s strategy and they should introduce the product in the market that stand out at different level in the market.

This is possible only when the company knows who are their major competitors, and what are their strategy, strengths and weaknesses, their product or service varieties, and many more. But sometimes, the company run out of budget in order to hire a professional competitive analyzing firm. No need to worry, as here we are presenting a guide that will help you do simple research and learn many things about the major competitors.

Following, we are listing five simple research steps that will allow the company to know more about the competitors:

Identify the major competitors of the organization

For an organization, knowing about the major competitors is very important. It s required that the company is having the information about the company who is also targeting the same segment in the market with the same product or the service range that you are offering.

Competitors are those that are serving the same clients as you are with the same product or service range or with the similar product or service range. The competitors that the company might need to compete with are categorized into three categories and these are:

Direct competition: These are those competitors that offers the same product or the services that you are serving and are also offering their services to the same segment of the customers as you are. They are providing your company the direct competition and these companies are included in your list of major competitors.

Secondary competitors or the indirect competitors: These are another group of competitors that are serving the same area where you are serving but are providing a little bit different product or the service. The product or the services offered by the indirect competing companies are not same but are similar to your products or services.

Substitute competitors: These competing companies serve in the same territory as you are but with different product or the service.            

Collect more information about the major competitors of the company

After identifying all the competitors, it’s time to collect the information related to the major competitors. The company should first invest their time and efforts in collecting the information related to the major or the direct competitors, and the next target should be on the indirect competitors. There is less requirements for the collection of information related to the substitute competitors. 

For collecting the information related to the major competitor company of the organization, one should focus on the following information:

Services and products: After identifying the major competitors, the company should gather information regarding the product and the services of the competitor company. It is possible either by buying their product and service and then comparing them with your product and services. Evaluate their quality, access if they are better or poor then your product or services, make the list of the features that you like in the product or the services of your competitors and also make the list of the features that you dislike. Analyze if the competitor’s product or services are meeting the requirements of the customers. DO not forget to gather the information about their suppliers.

Pricing: The next thing that impact majorly on the sale is the pricing of the product. After evaluating the quality of the competitor’s product or services, now check the pricing of their product. Try estimating their cost structure. Also, gather information related to their discount policy.

Branding and position: Now check Competitor’s websites, and catalogs, brochures, and other product documents. Also, follow them on their social media and get informed for their marketing strategies and selling propositions.

Market reputation: Talk to customers and collect the information regarding the market reputation of the competitors. Try getting information about the opinions of the customers regarding he product and services of the competitors.

Analyze their strengths and weaknesses

On the basis of above collected information, now make a list of the strength and the weaknesses of the major competitor companies. List what gives them popularity. This will help the company in building their strategy and perform better then the competitors in the same market.

Talk to your competitors directly

It might sound weird but is a great step for building a better relationship with your competitors. Though it is next impossible for the company to cooperate and compete at the same time. But, instead of contacting your direct competitors, you can contact with your indirect or substitute competitors. When you have good relation with them, they might refer the customers to you for the niche that they do not serve.

Take advantages of the weaknesses

When you are aware of the weaknesses of the competitors, you can take advantage of them and make their weakness your strength.

The bottom line

So these are simple five steps to do competitive analysis in affordable budget!