Analysis of competitors by categories
The struggle for the market is the desire to win the best opportunities for the production and sale of the product. In the course of studying and analyzing the competitors of the industry in which the company is working, the information obtained about their activities makes it possible to determine the degree of their impact on the success of the enterprise.
By calculating the characteristics of the intensity of influence in the general area of commerce, competitors are divided into categories that need to be investigated:
- Analysis of the main competitors – the ones who can significantly influence your activities and pull customers;
- Analysis of key competitors – those who have to focus mainly in the course of building their own tactical moves;
- The study of direct and indirect competitors – the ones selling a similar product ;
- Analysis of potential competitors – new companies seeking to enter the market and compete.
Development of a strategic plan for the fight
Analysis of competitors’ companies, their strategies and promotion methods also provides an opportunity to establish a measure of their competitive activity:
- Weak – sources for business growth;
- Strong – with a larger market share, high investment, voluminous knowledge; a threat to business.
According to the desired outcome and method of competition with each particular opponent, the right tactics of behavior should be chosen:
- Protective – drawing up plans aimed at retaining customers and maintaining the level of the position (conducted against strong competitors);
- Attack – planning actions aimed at luring customers and seizing sales territories (relatively weak competitors).
Analysis of the company’s competitors
The main goals of this study are:
- To get an idea of the size of the competitive environment;
- To understand the difference in your assortment and competing;
- To note the differences in pricing policy;
- To identify changes in rivals and in their environment with subsequent data analysis;
- To find out the source of buyers, the effectiveness of PR campaigns;
- To implement actions attracting customers;
- To identify their vulnerabilities and develop a marketing strategy.
An adequate evaluation of competitors’ market strategy will help to plan the actions in such a way as to take the leading positions in the area of trade of interest and to acquire an extensive base of active users.