Competitor analysis is nothing but strength and weaknesses of current and potential competitors. It is essential to have an in depth knowledge of competitors. Monitoring the competitors may help you out to understand the customer needs. The best advantage of competitor analysis is to identify the current and potential competition. Once you got the list of competitors you can start analyze their strategies and find out the areas where they are more likely vulnerable.
Competitor analysis has two primary activities
- Gaining the data about important competitors
- Using that information for predicting the competitor behavior.
Goals of competitor analysis
- How competitors react to firms actions
- With which competitors to compete
- How to influence competitor behavior to the firm’s own advantage.
- Competitors planned and strategies
Concentrating on your competitors is also an important task in your online business. Keep tracking on the services they offer work for them and how they are getting visitors to their site will sure help in improving your business. There are many tools raised in the market for analyzing and tracking the competitors. By using that you have to point on some manual strategies.
Product launch: Keep an eye on the services and products which are launched by your competitors in the market place. To identify this you need to be aware of the company details. Observe the customer response to the new product or service.
Recent investments: Analyze the property, equipment and plant that competitors acquired and how they plan to use it? Monitor what competitors are trying to expand the capacity, changing processes or potentially going to launch.
New distribution channels: Concentrate on the new distribution channels which are used by your competitors to get their products and services to the customers.
Promotional efforts: These are one of the easiest competitor elements which are usually in the public eye.
Partnerships & Acquisitions: Observe whether your competitors acquired a stake in any other company or they got any partnership with enterprise. Partnership and acquisition are the two major skills and technologies in competitor analysis.
People movements: Analyze your competitors whether they have lost any talented people from their organizations or not. A single talented person can make a lot of difference in the company.
Financial performance: Monitor the revenue and profitability of your competitors business.
Process improvements: These can change the experience of the customers. Mainly process improvements will be followed by new investments and also by changing customer perceptions.
Things to be considered while analyzing the competitors
Identify your competitors: Find the sites which are similar to your websites. Similar sites will give a clear view of your competitors.
Traffic: Analyze your competitor’s traffic which gives a clear picture on the no.of visitors they get.
Search engine ranking: You can also identify the competitors based on the page rank. Most of the search engines ranks based on the popularity which gives an idea on how competitors use their resources.
Value of keywords: Based on the keywords you can find the similar sites related to your content. Selecting the wrong keywords may dip you down with no traffic. A successful competitor knows what keywords to be used for harvest visitors to their site.
Backlinks: Back links can promote the site. If the referring site is having high standards then this will act as a tunnel from website to your site.
Social networks: Follow social networks because these became more popular. So subscribe to the newsletters and blogs to get more updates from the competitors.