{"id":436598,"date":"2022-07-30T11:00:09","date_gmt":"2022-07-30T18:00:09","guid":{"rendered":"https:\/\/www.questionpro.com\/blog\/?p=436598"},"modified":"2023-08-07T07:26:11","modified_gmt":"2023-08-07T07:26:11","slug":"competitive-analysis","status":"publish","type":"post","link":"https:\/\/www.questionpro.com\/blog\/competitive-analysis\/","title":{"rendered":"Competitive Analysis: A Step-by-step Guide"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">No matter what you do, you will find other companies that offer similar products and services. You need much knowledge and insight about your competitors to get ahead of them in a competitive market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Competitive analysis can be useful here. Analyzing your competitor will help you identify their marketing methods and evaluate your company&#8217;s strengths and weaknesses in the marketplace.<\/span><\/p>\n<p style=\"text-align: center;\"><em><strong>LEARN ABOUT:\u00a0<\/strong><a href=\"https:\/\/www.questionpro.com\/blog\/market-evaluation\/\">Market Evaluation<\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">This post outlines a complete guide for any business to conduct a competitive analysis. Add your knowledge of your industry and business with this, and you&#8217;ll have something practical.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What is a competitive analysis?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A competitive analysis is a method of finding your competitors in the marketplace and analyzing their plans to identify their strengths and weaknesses compared to your business. This analysis aims to acquire information and develop your marketing strategy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Marketers and business owners can learn more about their competition using modern software and technologies. It is critical to conduct competitive analyses regularly to stay one step ahead of the competition. Knowing your opponents helps you beat them.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Why should you conduct a competitive analysis?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Are you going into business? Before you start, it&#8217;s always a good idea to conduct an analysis of the competition. Not just for startups, every step of the company&#8217;s lifecycle can benefit from its use. Let&#8217;s figure out why you should conduct a competitive analysis:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Competitive analysis reveals your competitor&#8217;s actions and identifies how they can affect your company&#8217;s success.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It helps you identify places to position yourself for a winning outcome.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Assists you in better understanding how to optimize your <a href=\"https:\/\/www.questionpro.com\/blog\/how-to-do-market-research-for-a-business-plan\/\">business plan<\/a>.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It helps you determine your product&#8217;s brand values and what sets it apart from the competition.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It provides you with a way to measure your development.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It will help you find new <a href=\"https:\/\/www.questionpro.com\/blog\/market-research-trends\/\">market research trends<\/a> and keep you ahead of other companies in your industry.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><em><strong>LEARN ABOUT:\u00a0<\/strong><a href=\"https:\/\/www.questionpro.com\/blog\/market-research-stats-and-trends\/\">Market research industry<\/a><\/em><\/p>\n<h2><span style=\"font-weight: 400;\">Comparative analysis: A step-by-step guide<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When you&#8217;re ready to start your competitive analysis, use the methods described here to keep your research structured and organized. Make a spreadsheet to keep all this information in one place.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Find out your competitors<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Identifying the appropriate competitors to analyze is the essential part. To begin, you must determine who you are truly competing with. If you don&#8217;t, your research will be useless. For better or for worse, your company&#8217;s overall impression is shaped by the competitors you choose.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Start by identifying your competitors as primary or secondary. This will assist you in determining their business relationship.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Direct competitors:<\/b><span style=\"font-weight: 400;\"> These competitors are businesses that sell similar products or services to the same customers as yours. They are also known as primary competitors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Indirect competitors:<\/b><span style=\"font-weight: 400;\"> These are secondary competitors, offering the same or related services and products as you do but for a different need or audience.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tertiary competitors:<\/b><span style=\"font-weight: 400;\"> This is the third kind of competitor. They sell a product that might be related to yours in some way, but it doesn&#8217;t really compete with yours.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You also need to know the position of your competitors. Competitor positioning is essential to set yourself apart and establish a positive reputation among your clients. You can analyze these channels to identify your competitor&#8217;s position:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Social media<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Online communities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Keyword research<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Search engine results page<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Website copy<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Press releases<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Product Offering and Pricing<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">After knowing your competitors, you can look at what they are selling. List all of your competitor&#8217;s product features and explain the value that each one provides to customers. Please take note of their pricing and any discounts they may be offering customers. Consider the following questions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What are the most important parts of your competitors&#8217; products?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How much is your competitor&#8217;s lowest price?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What are the most significant things that affect the price?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What makes your competitor&#8217;s product better than yours?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What are the things that your competitor&#8217;s product doesn&#8217;t do well?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How do customers feel about your competitor&#8217;s products?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How do they get their products and services to people?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How is the company different from its competitors?<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Content comparison<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Now you can start your analysis to figure out what kind of content they&#8217;re putting out. Find out how often these content assets will be used. Do they put out new stuff every week or once a month? How often are new ebooks and case studies published? By looking at their content, you can see what changes you have to make better than your competitors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you find their content strategy, you may compare it to yours. For example, if your competitors post case studies regularly, this could be why your quality leads are moving to them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Check out their blog more closely. If your competitors publish three times a week and you publish once every two weeks, you can generate more website traffic by posting more regularly. Finding out what works is an important part, but there&#8217;s no point in trying to copy something that doesn&#8217;t work.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Understand competitor&#8217;s marketing strategy<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A good product or service gets you in the door, but marketing gets you to the top. Sadly, most businesses don&#8217;t look at how their competitors market themselves.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It takes a different point of view to understand your competitor&#8217;s marketing strategy. You need to understand and find out what offers they&#8217;re advertising, how they&#8217;re establishing and managing contact lists, and how they&#8217;re sharing material online.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can check out your competitor&#8217;s marketing like a potential customer. Here&#8217;s how:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Registering for their newsletters<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Blog subscriptions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Follow social media<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Buying anything<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You can also consider the following questions to understand the focus on competitor&#8217;s marketing strategies:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which keywords are your competitors targeting that you haven&#8217;t?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which of their content is popular?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How are your competitors using social media?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What drives visitors to the competitor&#8217;s website?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You may learn a lot about your competition&#8217;s strategies by analyzing these metrics and other support methods.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Check out their social media<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Next, Determine how your competitors utilize social media and promote. Find out what kind of information they post and how frequently they post it. Consider questions like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What&#8217;s their content?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are they using visual content to increase brand engagement?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do they upload events or cultural photos?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do people click on their posts?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Check out how they&#8217;re responding. Examine different social media platforms and note their total followers, post comments, reactions, and shares.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">SWOT Analysis<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Enhance your data with a <a href=\"https:\/\/www.questionpro.com\/blog\/swot-analysis-example\/\">SWOT analysis<\/a>. This means you&#8217;ll consider a competitor&#8217;s strengths, weaknesses, opportunities, and threats while assessing an overall grade.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Strengths and weaknesses are based on what is happening right now. You can alter them over time. Opportunities and threats are out of your reach. You can make plans for the future is possible, but you cannot affect them. Here are a few inquiries to get you going:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your brand&#8217;s competition<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your competitor&#8217;s weak point<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your brand advantage over competitors<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Threaten areas<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Assets<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It is a good practice to conduct A SWOT analysis once a year. You&#8217;ll see how your competitor&#8217;s weaknesses compare to yours and how your weaknesses compare to theirs. Doing this can put your business in a better position and start to see where your brand needs some work.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Conclusion<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Now you have an idea about competitive analysis and how to conduct one. Do a competitive analysis and use all the research findings of each competitor. Find the parts of your work that could be better. You&#8217;ll find something if you keep looking.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When starting a business, it&#8217;s essential to look at the competition. We suggest doing <a href=\"https:\/\/www.questionpro.com\/blog\/competitor-research\/\">competitor research<\/a> anywhere from once every three months to once every year. This gives you opportunities to think about what you&#8217;ve found and track your progress.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">QuestionPro is more than just survey software; it does a lot more. We have a solution for every industry and every type of problem. We also have platforms for managing data, such as our Insights Hub research repository.<\/span><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.questionpro.com\/research-edition-survey-software\/\" target=\"_blank\" rel=\"noopener\"><button>LEARN MORE<\/button><\/a>\u00a0 \u00a0 \u00a0 \u00a0<a href=\"https:\/\/www.questionpro.com\/a\/showEntry.do?classID=1053&amp;sourceRef=blog\" target=\"_blank\" rel=\"noopener\"><button>FREE TRIAL<\/button><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>No matter what you do, you will find other companies that offer similar products and services. You need much knowledge [&hellip;]<\/p>\n","protected":false},"author":49,"featured_media":436599,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[174],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Competitive Analysis: A Step-by-step Guide | QuestionPro<\/title>\n<meta name=\"description\" content=\"Competitive analysis is a kind of strategic research that focuses on gathering and analyzing data about competing businesses. 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