Why is it important to do a competitor analysis?
The dream of every entrepreneur is to be the first in their field, undefeated and even a little envied by everyone. Perhaps even being the only one in your field: owning the whole market, dominating it and not having to face any rivals.
But unfortunately the reality of the situation is quite different. The market is constantly growing and so-called competitors are lurking around every corner. That is why it is important not to be found unprepared and to be able to face any challenge they may pose.
First of all, what is a competitor? A competitor is a company, firm or entrepreneur competing in the same market as others and trying to offer the same services to the same target audience. It is also possible to differentiate between the types of competition they may engage in: direct and indirect competition. The difference between the two lies in the type of offer made by the analysed competitors. If the companies analysed offer the same type of service, we speak of direct competition; if, on the other hand, the range of services is much broader but still related to the same branch of services, we speak of indirect competition. In addition, the possibility of potential competition can also be considered, i.e. all those competitors that operate in different markets but that may sooner or later change markets and become direct competitors.
In short, competitors are everywhere and can become a major threat to the success of the marketing plan a company has decided to follow. The best way to deal with this issue is through competitor analysis or ‘Benchmarking‘.
Benchmarking involves monitoring a number of important aspects including: financial information (such as share price), market share, brand awareness, positioning and marketing strategy, pricing strategy, strengths and weaknesses of their products and services but also of their customer experience, and of course the specific market segment they are targeting.
This type of study is carried out by sifting through different types of sources, in which you can find a range of useful information for analysing the competition. These include the content released by competitors themselves, such as advertising, company blogs, website and social pages, newsletters and press releases. In addition, an analysis of industry publications and blogs is essential to understand not only how other companies are talked about, but also to identify any emerging needs, trends, risks or opportunities that need to be addressed to maintain or increase competitive advantage. The more complete the press review, the more complete its analysis will be.
The competitor world is more complex and wide-ranging than you might imagine, which is why you need to rely on professionals: find out how to improve your marketing strategies with our Social Media Reporting service. Contact us, we will be happy to work out the best strategy for you!