Each company that enters the market or plans to do this is faced, first of all, with an obstacle. Other competitors act as such a barrier, that is, firms whose activities are related to the given market of goods or services. Competition is the relationship between these firms. And this forces us to regulate our activities, clearly adjust it to market parameters, analyze competitors, study their activities, successes and mistakes.
The market situation is volatile. If competitors act in a timely manner, then your position and importance in the market may change. Therefore, strong marketing and timely action are essential. After all, a marketing strategy is needed today, and it will help to become stronger. A strategic decision that is made on time and correctly can play a key role in the success of your organization. It is such decisions, in the long run, that can have a decisive influence on your products, their competitiveness and the enterprise as a whole.
An analysis of the activities of competitors will show their strengths and weaknesses , will help to find out the most effective strategies that are appropriate to apply. Also, an analysis of the question of who should be considered a competitor in this area can provide a lot of information. After analyzing competitors, you will know what steps they can take in the near future. And this, in turn, will help to offer the market exactly the product with which competitors will be squeezed and the market captured.
It is very important to pay great attention to obtaining timely information about your competitors, their new services and products. This will provide an opportunity to quickly analyze and respond, protecting your market share.
What does the analysis of competitors imply? First of all, this is a thorough study of existing as well as potential rivals. You determine and evaluate their positioning strategies, identify and analyze their strengths and weaknesses. Assess competitors' perceptions by target consumer groups. And even more important is the analysis of PR activities of competitors, as well as their advertising campaigns.
Here's what you get by conducting a marketing analysis of your competitors:
- A comparative analysis of all market participants. This includes identifying your company's competitors, assessing the market share they occupy, assessing the possible reactions of competitors, etc .;
- determination of the strengths and weaknesses of each of the participants in the market;
- identification of barriers to market entry;
- information on the prospects of competition;
- recommendations related to the development of measures that will enhance the competitiveness of the enterprise.
If the analysis of competitors is carried out, the basis is formed on competing firms and products. At the same time, you should rely on issues such as: market share by type of goods that competitors occupy; turnover volume of each competitor, sales organization, price policy, terms and conditions of delivery, and much more.
As a result of such a check, you have the opportunity to understand why your competitors act in this way. Based on this, you will choose your strategy.