Future Forecast:

Forrester predicts that by 2030, companies that leverage competitive analysis will have a 50% higher market capitalisation than those that do not.*

   Competitive analysis involves evaluating several key elements to gain a comprehensive understanding of the market landscape. These elements include an examination of competitors’ products and services, where businesses assess the features, quality, and variety offered. Pricing strategies are also scrutinized, analyzing how competitors price their products, their discount strategies, and the perceived value they provide. Marketing tactics are reviewed, including branding, advertising campaigns, content marketing, social media presence, and public relations activities. Additionally, understanding the customer base of competitors—demographics, preferences, and behaviors—provides crucial insights.

   Other critical elements include assessing distribution channels to understand how competitors deliver their products, whether through online platforms or retail partnerships. Financial performance is evaluated by examining competitors’ revenue, profit margins, and market share. Technological capabilities are analyzed to understand the innovation and technology used by competitors. 

Competitive Analysis

Future trends:

   As the business landscape continues to evolve, competitive analysis is expected to become increasingly data-driven and technology-enabled. The proliferation of big data, artificial intelligence, and machine learning will enable companies to process and analyze vast amounts of competitive information in real-time, allowing for more accurate and timely decision-making (Calof, Richards, & Santilli, 2017). This will enable businesses to quickly identify emerging trends, anticipate competitor moves, and adapt their strategies accordingly.

   Additionally, the growing importance of digital channels and social media will necessitate a greater focus on monitoring and analyzing online competitor activity, such as customer reviews, social media sentiment, and digital marketing campaigns (Bose, 2008). As more consumers turn to online platforms for product research and purchase decisions, businesses will need to leverage competitive analysis to optimize their digital presence, engage with customers, and build brand loyalty. By staying attuned to the evolving digital landscape and using competitive analysis to inform their online strategies, businesses can position themselves for success in the digital age.

Competitive Analysis

Getting started:

  To get started with competitive analysis, businesses should first define their objectives and identify the key competitors they wish to analyze. This can be done by conducting market research, monitoring industry publications and events, and leveraging online tools such as Google Alerts and social media monitoring platforms. It is essential to cast a wide net and consider not only direct competitors but also potential substitutes and emerging players that could disrupt the market.

   Once the competitors have been identified, businesses should gather and organize relevant data, such as financial reports, product offerings, pricing strategies, and customer reviews. This information can then be used to conduct a SWOT analysis, benchmarking, and other analytical techniques to identify strengths, weaknesses, opportunities, and threats. Based on these insights, businesses can develop targeted strategies to exploit market gaps, improve their competitive position, and drive growth (Fleisher & Bensoussan, 2015). By continuously monitoring competitor activities and market trends, businesses can refine their strategies and stay ahead of the competition in an ever-changing business landscape.

References:

Note: Page hyperlinks can change overtime. If a hyperlink has a 404 error, please search Google for the new link.

Fleisher, C. S., & Bensoussan, B. E. (2015). Business and Competitive Analysis: Effective Application of New and Classic Methods (2nd ed.). Pearson FT Press. Link

Bergen, M., & Peteraf, M. A. (2002). Competitor Identification and Competitor Analysis: A Broad-Based Managerial Approach. Managerial and Decision Economics, 23(4-5), 157-169. DOI

Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press. Link

Henderson, B. D. (1989). The Origin of Strategy. Harvard Business Review, 67(6), 139-143. Link

Prescott, J. E. (1995). The Evolution of Competitive Intelligence. International Review of Strategic Management, 6, 71-90. Link

Wright, S., Eid, E. R., & Fleisher, C. S. (2009). Competitive Intelligence in Practice: Empirical Evidence from the UK Retail Banking Sector. Journal of Marketing Management, 25(9-10), 941-964. DOI

Crayon. (2020). The State of Competitive Intelligence 2020. Link

Cipher. (2021). The Impact of COVID-19 on Competitive Intelligence Practices. Link

Sim, G. (2020). Netflix: A Case Study in Strategic Management. Harvard Business Review. Link

Calof, J., Richards, G., & Santilli, P. (2017). Competitive Intelligence and Strategy Development: An Integrated Approach. Journal of Intelligence Studies in Business, 7(3), 5-17. Link

Bose, R. (2008). Competitive Intelligence Process and Tools for Intelligence Analysis. Industrial Management & Data Systems, 108(4), 510-528. DOI

Quantica is an Australian firm specialising in advanced digital solutions. Our core capabilities focus on addressing the challenges of positioning services, solutions, and products within the digital ecosystem. Each industry we serve requires a tailored approach and strategy. Our mission is to empower organisations with customised solutions, enabling them to thrive in a rapidly evolving digital landscape.

Benefits of Competitor Analysis:

How to create a Competitor Analysis:

How can my business exploit identified market gaps effectively?

Innovate and improve: Develop new products or enhance existing offerings that address the shortcomings of your competitors. Focus on quality, usability, and innovation.
Marketing differentiation: Create compelling marketing campaigns that highlight the unique aspects of your products or services, especially those aspects that address the identified market gaps.
Strategic partnerships: Form alliances with other companies to combine strengths in a way that better serves the market’s unmet needs, thereby creating a competitive advantage.

What are the common pitfalls in competitive analysis and how can I avoid them?

Overlooking niche competitors: Don’t just focus on major players. Niche and emerging competitors can provide significant insights into market trends and innovative approaches.
Static analysis: Market dynamics constantly evolve; regularly update your competitive analysis to maintain its relevance and effectiveness.
Bias in data interpretation: Ensure objectivity in your analysis by involving diverse team members in the process and considering multiple data sources to validate your findings.

How often should competitive analysis be conducted and updated?

Regular intervals: Conduct a full competitive analysis at least annually, with quarterly or bi-annual reviews depending on the pace of your industry.
Trigger events: Update your analysis more frequently in response to significant market changes such as new entrants, disruptive technologies, or major shifts in consumer behaviour.
Continuous monitoring: Keep a continuous watch on key competitors and industry trends through alerts and real-time data tracking to ensure timely responses to any critical market changes.

Quantica acknowledges the Traditional Owners of the lands across Australia as the continuing custodians of Country and Culture. We pay our respect to First Nations peoples and their Elders, past and present.

©2024 Quantica