Competitors strategies analysis
Every enterprise has to know its competitors, meaning that it has to have the full list, made according to the rate: the main competitor, market’s leader, direct and potential competitor, etc. Such a register is compiled because of an analysis of competitors’ activities.
This crucial component in exploring of the sales market allows to determine all the main types of competition. In the course of a detailed analysis of competitors’ strategies, information is collected on:
- Advantages and disadvantages of rival parties;
- The competitor’s potential;
- The level of their technical capabilities;
- Quality parameters of products or services;
- Price policy.
Analysis of competitors’ actions
This method of marketing includes obtaining specific information about the functioning of competing companies that have similar business, and their work can affect the promotion of your products and, consequently, the level of sales.
By the degree of impact on the success of your enterprise, competitors are divided into:
- The main ones that have a significant influence and draw customers to themselves;
- Indirect ones that occupy a neighboring position with a similar business;
- Intense and weak;
To get benefits for your business, you should conduct a thorough study of your competitors’ work. When planning your product line, the analysis of the competitors’ offer will help you navigate along the part of the demand for a particular product, the buyer’s interest in it, and the volumes of market trade.
To calculate the future profit, the analysis of the costs of competitors and their income will guide you in setting the price policy and the amount of investment in the enterprise.
When tracking successful competitors you get a number of advantages like:
- Avoiding repeating other people’s mistakes and ideas;
- Using the experience gained to effectively introduce your product to the market;
- Acting to strengthen their own positions;
- Studying the feedback of their clients to determine how to attract new customers;
- Reducing risks in the formation of new proposals.