4 best out line to do a Competitive Analysis of your business
Your search for simple competitive analysis framework will end with this”4 best out line to do a Competitive Analysis of your business”. The best way to compete with competitors is to know them. What does competitive analysis framework mean? It is also called corporate analysis framework, ro market analysis framework or competitor analysis model?
By Admin
How important for a business to get done competitor analysis before strategic planning process? For any business a competitor analysis is a prime part of the strategic planning process. Specifically, competitor analysis helps on discovering every move of the competitors uncover a company an advantageous position in business decision.
Whenever a business on verge of promoting the business or on the edge of building traffic to their homepage – the prime focus is looking out for competitor. That means, competitor analysis would help a competing firm to develop a profile for its nature and success. Similarly, it will help in outlining a response plan for each of competitor’s matrix for strategy changes. Moreover, a business can get a sense of to the array of industry changes and broader environmental shifts that might occur for each competitor’s probable action.
Similarly, competitor analysis helps in keeping track of competitor strategies. As a result, this would enable marketer to target right audience and win the industry. Hence, Senitih business consulting services is giving an outline to do a Competitive Analysis of your business.
With is competitive analysis outline a business professional can check and research for evaluating their competitor marketing strategy. Therefore, this competitive analysis out line they can gather vital information like competitor business strategies, products, services, discounts, deals to know competitor’s competencies.
“Competition whose motive is merely to compete, to drive some other fellow out, never carries very far. The competitor to be feared is one who never bothers about you at all, but goes on making his own business better all the time.” — Henry Ford
Why use this competitor analysis outline?
Competitor analysis has its prime importance in strengthening business strategies. This make a business analytical approach more professional and realistic. Moreover, there is many reason for adapting the analytical competitor analysis outline, or competitor analysis framework or corporate analysis framework or market analysis framework or competitor analysis model such as:
- Identified market shift: The market changes time to time. It is important for a brand marketer to be aware of it. Hence, a competitor analysis outline helps in visualize certain market shift, reveal the gaps, examine the business in a specific industry. Consequently, a marketers retract the gaps compare to your industry for a business idea, product or offer.
- Effective marketing Strategies: Competitor analysis outline will guide the marketers to build the most effective marketing strategies from scratch. Therefore, it will help in avoiding costly mistake while hosting marketing campaign for your brand. Farther on, let’s have a look at the four diagnostic components to a competitor analysis -Current Strategy; Objectives; Resources and capabilities; and Assumptions
4 Framework for Competitive Analysis
Competitor’s or the rival’s likely moves and countermoves- depends on the four factors.
Current Strategy
To understand competitor current strategy one will have to deep dive research. Some of the best resource for deep diving search for understanding competitor current strategy are – accessing company annual report, News, Media, etc. Companies do usually disclose their current and future strategic plan to its investor well in advance. Accordingly, this understanding can help competing farm to set moves and counter current strategic moves.
Objectives
What drives the competitor strategic and performance objectives? Competitor set objective can be anything like- being product leader, new product launch, improving financial standing, improving market standing, etc. Specifically, competitor will do everything to reach this objective. Usually, a deep market research will cover, annual report, website, press briefing, etc. can provide clarity of its objective. Therefore, a competing farm with this knowledge can set its own counter strategic objective.
Resources and Capabilities
The number of competitors is increasing, and are becoming more equal in size and competitive capability. Therefore, to have a competitive edge competitive analysis of rival’s strengths and weakness become mandatory.
Strengths
It analyse internal factors which can benefit the organization. For example, it can be work culture, highly trained staff, low fixed cost, etc.
Weakness
It pumps out disadvantages to save the farm from any loss. If a company high storage cost, it is logistic challenge for the company.
Assumptions
What the rival believes about itself and the industry. Sometimes, assumption can be very dangerous. For example – “We know all about our competitors because we compete with them every day.” This can be dangerous assumption. Similarly, Disney believe that it can launch Disney plus channels instead of selling it movies to Netflix. Consequently, Disney will not have to sell its movies to Netflix anymore and earn more revenue. This example shows what Disney believe and consequently its impact on a video streaming industry.
Takeaways
Understanding the four diagnostic components to a competitor analysis -Current Strategy; Objectives; Resources and capabilities; and Assumptions will allow an informed prediction of the competitor’s response profile. It is important to pay full attention to all fours diagnostic component to have an even competitor analysis. Please feel free to contact Senitih business consulting services to have more conversation for your competitor analysis question.
