How Competitor Research Helps Your Business
Competitor research is a disciplined, innovative, and analytical approach to understanding and measuring competitors and their activities. Competitive analysis in strategic management and marketing is a careful assessment of competitors’ strengths and weaknesses. This analysis offers both a defensive and offensive strategic context to identify threats and opportunities.
Competitor research originates from marketing and business studies and applies this methodology to competitive analysis and marketing campaigns. The core of Competitor Research is the application of basic economic theory. This theory recognizes that firms compete for market share, and that the size and scale of competitors affect demand. The theory further states that the size and scale alone cannot provide sufficient supply to sustain competitive advantage, so firms must diversify their activities to survive and excel.
Competitor Research methodology also involves a systematic evaluation of competitor strategies. A good competitor research program will cover a wide range of aspects of a firm’s strategic marketing and business plans. Key areas examined in Competitor Research include product and service design, pricing, advertising, promotions, branding and public perception. An important aspect of Competitor Research is developing a flexible strategic framework to complement the quantitative data generated during the process. Competitor Research should lead to the identification of future competitor goals and strategies and should forecast how those goals and strategies might be obtained by firms with the same size, products, and market segments.
Competitor Research can be used by firms to refine their own strategic designs. It can also be used by business rivals to detect weaker attributes of your company that could be used to surpass you. This type of analysis is particularly valuable for small companies and start-ups in growing markets. It is also useful for businesses that are entering new markets. By learning more about competitors, you can gain a competitive advantage through flexible strategic designs, low cost implementation, and rapid deployment. Competitor research can also help a firm to determine whether its current strategy or new strategy is more effective than its competitor’s strategies.
The results of Competitor Research can help identify and define target marketing opportunities. It can also help identify potential weak spots in your company’s overall marketing strategy. Through competitive research, firms have the opportunity to develop and test their own business models, identifying bottlenecks and other issues that hinder growth. When properly executed and monitored, Competitor Research can significantly improve your company’s brand voice, resulting in higher profits and more customer loyalty.
Competitor research can help you find innovative ways to connect with customers, such as testing new advertisement formats or developing a new ad campaign. In addition, you can uncover new and creative ideas to increase your company’s revenue. You can use competitor research to build a comprehensive database of search competitors and learn more about their strategies, products, and services. As well, you can uncover important details that can aid in establishing your company’s competitive advantage.
Competitive intelligence allows you to pinpoint the key areas in which your competition is weak and exploit these key areas for your own advantage. By closely examining the strengths and weakness of your rivals, you can develop new ideas and strategy to capitalize on their weakness. With this information, you can develop new products or services, launch new marketing campaigns, and reduce costs. If properly executed, Competitor Research can result in a long term strategy that establishes your company’s place in its industry.
Competitor analysis can help you understand the strategies and actions that your competitors are taking to position your brand. This analysis can provide you with the insight you need to make strategic decisions to improve your current performance. In fact, a recent survey by BT Customer Street indicated that consumers are increasingly aware of competitive analysis tools such as swot analysis and the concept of swot analysis. Therefore, a competitive research company can help you leverage the power of competitor analysis to help you increase your brand recognition, profitability, customer loyalty, and market share.