Welcome to my Competitor analysis. Competitor Analysis in Practice: 10 Steps
If you are wondering "How to analyze the competition in practice?", Then you should read this article. With the help of our trained competitor analysis example, you will be able to assess the competitiveness of your company. In this example, the competitive analysis included 10 basic steps that must necessarily be made in the analysis of the competitive environment of the company. At the end of this article, you will find a comfortable pattern with tables that will help to structure all received in the course of information.
If you are wondering "How to analyze the competition in practice?", Then you should read this article. With the help of our trained competitor analysis example, you will be able to assess the competitiveness of your company. In this example, the competitive analysis included 10 basic steps that must necessarily be made in the analysis of the competitive environment of the company. At the end of this article, you will find a comfortable pattern with tables that will help to structure all received in the course of information.
Preliminary work
Before proceeding to a comparative analysis of competitors, conduct some preliminary work. At first,
Second, decide the motive of competitive analysis, not to analyze the "extra" information that does not give an answer to the right questions. Third, carry out a survey of consumers in the market to form an understanding of what the submission target audience has about your product and competitors products, assess the level of knowledge and loyalty.
Carry out analysis of competitors for the first time?
We recommend reading the essay " memorandum competitive analysis of the enterprise", which contains all the necessary information about the main stages and principles of the analysis of the competitive environment of the company.
So, we proceed to the analysis.
№1 Rate the overall level of intra-industry competition
The more intense competition in the industry:
the faster the changing market environment
the more important mobility and quick reaction to changes
the higher the level of required costs, staff development and the expectations of the product
the more difficult to find a free niche and successful competitive strategy
the higher downside risks to long-term profit
the higher the level of development and market saturation
In the first stage of competition analysis, determine the number of players, the market growth rate, the dynamics of the emergence of new product categories and products in the industry. Conclusions at this stage should be made with respect to the intensity of competition, the prospects of its tightening and forecasts market trends for the next 3 years. A comparative analysis of the portfolio
Define the list of competitors and compare it with a portfolio of your company. Be sure to note the key business areas of each player (in the table key business lines - pink cell):
Key business areas - product categories that provide the highest proportion of sales and profit share
Before proceeding to a comparative analysis of competitors, conduct some preliminary work. At first,
Second, decide the motive of competitive analysis, not to analyze the "extra" information that does not give an answer to the right questions. Third, carry out a survey of consumers in the market to form an understanding of what the submission target audience has about your product and competitors products, assess the level of knowledge and loyalty.
Carry out analysis of competitors for the first time?
We recommend reading the essay " memorandum competitive analysis of the enterprise", which contains all the necessary information about the main stages and principles of the analysis of the competitive environment of the company.
So, we proceed to the analysis.
№1 Rate the overall level of intra-industry competition
The more intense competition in the industry:
the faster the changing market environment
the more important mobility and quick reaction to changes
the higher the level of required costs, staff development and the expectations of the product
the more difficult to find a free niche and successful competitive strategy
the higher downside risks to long-term profit
the higher the level of development and market saturation
In the first stage of competition analysis, determine the number of players, the market growth rate, the dynamics of the emergence of new product categories and products in the industry. Conclusions at this stage should be made with respect to the intensity of competition, the prospects of its tightening and forecasts market trends for the next 3 years. A comparative analysis of the portfolio
Define the list of competitors and compare it with a portfolio of your company. Be sure to note the key business areas of each player (in the table key business lines - pink cell):
Key business areas - product categories that provide the highest proportion of sales and profit share
Identify competitors bestsellers for each product category and prepare a comparative analysis of each "hit" a competitor to your product. Be sure to mark the key properties of the products.
The evaluation of properties is more convenient to carry out on a 5-point scale, where 0 points - the absence of property, and 5 points - the best deal in the market
Analysis of the competitive environment
Analysis of the competitive environment contributes to the whole spectrum of marketing and production objectives of the organization. On this basis, we can predict the outcome of the competition and to select the optimal model of promotion and positioning of the company's products.
Qualitative analysis of the nearest competitors allows you to simulate the diversity of scenarios and in time to make necessary changes in the company's activities.
Depending on the objectives of the study carried out an analysis of the competitive environment on several fronts. The main objectives of assessment include:
monitoring shares of major market participants,
compilation of rating companies according to certain parameters,
drawing positioning cards (cards of employees competitors market niches)
Analysis of prices on competitors' products,
assortment competitor analysis.
On the basis of these data, mathematically calculated the success of any company. The evaluation results make it possible to respond quickly to changes in consumer preferences and to take corrective measures positioning and promotion strategies.
A comparative analysis of the competition on time and other parameters reveals the dynamics of changes in marketing strategy, to evaluate the most effective moves the market leader, providing the best results. Implementing this knowledge into practice the company will help to minimize errors in the planning and implementation of its own marketing strategy, as well as to achieve increased revenue and market share.
The most effective methods of competitive analysis
Basic methods of analysis of competitors:
assessment of shares of all market participants;
Comparative analysis of competitors according to certain parameters;
Ranking the companies;
drawing positioning cards;
analysis of the range of its competitors;
monitoring of the value of goods and services.
Analysis of the competitive environment contributes to the whole spectrum of marketing and production objectives of the organization. On this basis, we can predict the outcome of the competition and to select the optimal model of promotion and positioning of the company's products.
Qualitative analysis of the nearest competitors allows you to simulate the diversity of scenarios and in time to make necessary changes in the company's activities.
Depending on the objectives of the study carried out an analysis of the competitive environment on several fronts. The main objectives of assessment include:
monitoring shares of major market participants,
compilation of rating companies according to certain parameters,
drawing positioning cards (cards of employees competitors market niches)
Analysis of prices on competitors' products,
assortment competitor analysis.
On the basis of these data, mathematically calculated the success of any company. The evaluation results make it possible to respond quickly to changes in consumer preferences and to take corrective measures positioning and promotion strategies.
A comparative analysis of the competition on time and other parameters reveals the dynamics of changes in marketing strategy, to evaluate the most effective moves the market leader, providing the best results. Implementing this knowledge into practice the company will help to minimize errors in the planning and implementation of its own marketing strategy, as well as to achieve increased revenue and market share.
The most effective methods of competitive analysis
Basic methods of analysis of competitors:
assessment of shares of all market participants;
Comparative analysis of competitors according to certain parameters;
Ranking the companies;
drawing positioning cards;
analysis of the range of its competitors;
monitoring of the value of goods and services.
Rating companies are calculated on the basis of data about consumer preferences. Clients and customers need to select and evaluate the degree of importance of each of the proposed parameters of the firms operating in a given market. All the obtained characteristics are summarized, processed and analyzed. On this basis, the total score is calculated for each subject. The competitive analysis allows accurately rank the list of subjects to determine the leading companies on the market. The rating shows consumer perception presented in the industry. the results often do not coincide with the rating, compiled on the basis of shares held by the participants. These mismatches can use for their own purposes.
Maps positioning is actively used for annual monitoring of the development of the market in certain geographical areas and the selection of optimal segments from the point of view of the maximum possible profit.
positioning the card can be visually differently decorated, but usually, are presented:
in the individual descriptions of each entity of the market according to certain parameters;
in the bulk matrix with a fixed position of the company.
In the second case, the division of the market clearly shows the most important criteria and parameters (for example, in terms of prices and service).
Maps positioning is actively used for annual monitoring of the development of the market in certain geographical areas and the selection of optimal segments from the point of view of the maximum possible profit.
positioning the card can be visually differently decorated, but usually, are presented:
in the individual descriptions of each entity of the market according to certain parameters;
in the bulk matrix with a fixed position of the company.
In the second case, the division of the market clearly shows the most important criteria and parameters (for example, in terms of prices and service).
Methods of analysis based on a competitor positioning card is an integrated approach to the study of the market situation, that allows considering the most important issues and trends. Positioning Maps help find additional sales markets and customer segments.
For manufacturers, wholesalers and suppliers are important to analyze the activities of competitors in the parameter "range". This must be done before the launch of a new product market, the development of other segments and monitoring the presence of market trends. Assortment often performs the most important factor determining consumer choice. The results of independent studies confirm this. Regularly conducted a competitive analysis of the market must include an examination of:
consumer preferences;
Consumer assessment of the range of companies;
"Obsolete" range;
financial performance of each product line.
Marketing methods of competitive analysis are the main source of representative information and a guarantee of effective recommendations for all market participants.
Analysis and monitoring of competitors' prices
The cost of goods is one of the major criteria for the selection, even for the most affluent people. For manufacturers and retailers is important as the analysis of competitors' prices before the conclusion of a new product on the market and the development of other segments, as well as for monitoring the presence of market trends.
Retailers sell thousands of items a variety of positions, so the product range list and the cost of them is huge. For manufacturers, this list is much smaller as it requires comparisons of production cost, usually in one or two product groups.
Information on the cost contributes to the definition of the boundaries of the price for a particular product or service. Limited monitoring for retailers allows us to study the cost of goods in certain selected categories - goods markers. According to him, as a rule, the consumer makes general conclusions about the level of prices in a particular store.
Analysis of competitors' activities on certain parameters
Marketing competitor analysis involves the collection and analysis of business information of competing organizations. As a rule, it is difficult to hold their own. In this case, it is better to turn to research agencies.
BCGroup analyzes the competitive environment of the organization and on its basis compares the performance of the client company with other companies operating in the market, it gives practical recommendations to improve the activity of the individual parameters, and the exact same position.
competitors Market analysis can be carried out on a number of parameters:
share and market volume of competing organizations;
advantages and disadvantages from the standpoint of consumers;
margins;
sales volumes;
basic consumer segments;
average receipts;
cost structure and sales.
Analysis of the industry and competitors provides a complete representative information, the use of which has enormous advantages: understanding the tactics and strategies of nearest rivals, how they advance, the possibility of optimal choice for mergers and acquisitions.
BCGroup Agency uses efficient criteria, methods, and principles of competitive analysis. An integrated approach to research ensures the best results, makes it possible to predict the development of the situation in the market to minimize the risks competently build promotion strategy and positioning.
How to conduct a competitor analysis: fundamentals and stages of
Analysis of competitive environment begins with the identification of the share of each company's market share. This indicator should be regularly monitored. Market share in the dynamics of development and shows the results of operations of each organization. It does not depend on changes in market capacity. A comparison with the previous period, allows you to make valid conclusions about the success of the current work. The main indicators, which are calculated on the basis of market share are financial (at least - natural).
Basics of the competitive analysis suggest knowledge and monitoring a plurality of market performance, combining several research methods most suitable for solving the existing problems. This allows you to accurately calculate the amount of revenue to get real opportunities to expand the scope of influence on the market, the competition to identify the most vulnerable places. The dynamics of development of the organization, effectiveness of the management and marketing solutions are evident in the analysis based on the results of research. Market share of the market allows us to separate the effect of growth on the growth of the organization.
Data on shares and capacities of market agents, published in the media and presented the results of extensive market research, are very different. This is due to the fact that the participating companies are providing information to the media on their own, and marketing agencies based on objective market indicators. Strategic competitive analysis conducted by an independent agency, to provide reliable data on which to develop a truly successful tactics and strategy for the company. Stages of the competitive analysis, in this case, be sure to include the collection of primary information consumers. This is the most accurate way to obtain the necessary marketing data.
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