How to Conduct a Competitive Analysis

Definition of Competitive Analysis: A competitive analysis is a strategic tool used to evaluate how a company compares to both direct and indirect competitors. Direct competitors offer similar products and services, while indirect competitors may provide different offerings that fulfill the same needs. Benefits of Competitive Analysis: Assists in strategic decision-making. Identifies strengths and weaknesses of both your organization and competitors. Uncovers potential market opportunities for exploitation. Informs the development of a unique value proposition. Four Broad Factors in Competitive Analysis Template: Company Highlights: Includes company profile, founding date, number of employees, and key competitive advantages. Market Information: Specifies target market, market share, and marketing strategies employed. Product Information: Describes products, pricing for key products, and distribution channels used. SWOT Information: Analyzes strengths, weaknesses, opportunities, and threats, considering broader market trends. Completed Competitive Analysis Example: Demonstrates a template with two companies, detailing their profiles, market information, product information, and SWOT analysis. Highlights differences in founding dates, target markets, pricing models, distribution channels, strengths, weaknesses, opportunities, and threats. Key Takeaways for Strategic Analysis: Strategic analysis aids in understanding competitive positioning. Useful for strategy development, identifying opportunities, and defining a unique selling proposition. Consideration of broader market trends is crucial in SWOT analysis. The provided template facilitates a structured approach to competitive analysis. Strategic analysis templates can be downloaded for practical application.