It is often said that you should keep your friends close and your enemies closer. Nothing could be further from the truth. The same logic could be applied to business too. This leads us to the context of competitive analysis.
Competitor analysis is nothing but analyzing your competitor’s strategy so that you always stay two steps ahead of the game. This is akin to a chess game where strategies rather than chess pieces on board determine the result of the game.
Analyzing a competitors profile includes games, moves and additional manipulations and maneuvers your competitor puts into play. This is done so that he/she can stay ahead of the market race.
Obviously when we are talking about a competitor, we mean several competitors. In the real world there are a thousand sellers trying to entice buyers to purchase their product. And the situation is the same across all market segments (unless we are talking about a monopoly or a duopoly in which case the number of sellers are countable).
The advantages of competitor profiling are many. It helps you know the strategy that your competitors are employing using which you can employ your own accordingly. It helps you know the kind of product/service that your competitor specializes in as well as any strategic weaknesses which can be taken advantage of. Above all, it could help you capitalize upon any market advantages and act upon them before your competitor is able to.
Advertisement/Social Media Activity:
You would be surprised by the kind of information that can be garnered through social media.
Social media activity reveals a lot about the kind of values your competitors hold, the kind of customers and market segment they are trying to attract, whether they have introduced any new product/services in the market or are wishing to launch one, etc.
All this and much more can be garnered by the kind of advertisements the market entrant holds dear.
This can give you a better idea about the current trends in the market and the common strategies that your major competitors are relying upon.
New Entrants In The Market:
Care should be taken that while you are evaluating your old rivals and competitors, you make room for new entrants in your Business research outsourcing. This would keep you abreast of the competition, help you gauge the size of the entrant market and the kind of effect it could have on how much you produce.
Habitually, when it comes to analyzing competition and market behavior, most companies stay in the dark, as in, they rely on crude techniques and estimations to sail them through. But this isn’t how a business operates or should operate. If you are planning on surviving the onslaught of competition you have to employ better techniques.
A detailed competitor profiling analysis is necessary, but if you are unsure how to go about it, you could always get in touch with Market Quotient, an Business research outsourcing firm headquartered in NJ, USA before plunging headlong into a serious business without initial preparation.