In a world where markets are changing rapidly and customers have ever-increasing expectations, understanding your competition is essential. Competitive analysis is a strategic tool that helps organisations define their position in the market, identify opportunities and improve their offerings. But what exactly does competitive analysis entail, and how do you approach it?
What is competitive analysis?
Competitive analysis is the process of examining who your competitors are, what they offer, how they position themselves, and what strengths and weaknesses they have. This helps you understand your own unique value proposition and how you can stand out in the market.
Why is competitive analysis important?
- Understanding the market position
Knowing who your competitors are and what they do gives you a better idea of where your organisation stands. This helps in defining your strategy and identifying growth opportunities. - Improve your offering
See that a competitor is successful with a certain service or functionality? Then you might consider offering something similar (or better) – in a way that suits your brand, of course. - Identifying risks early
Is a competitor’s strategy changing or is a new player entering the market? With good analysis, you can react to changes faster and mitigate risks. - Marketing more effectively
By knowing what your competitors are communicating and through which channels, you can sharpen your own message and channel choice for better positioning.
How do you conduct a competitive analysis?
1. Identify your competitors
Consider:
- Direct competitors (same target group, similar offerings)
- Indirect competitors (different offering, but solving the same problem)
- New market entrants
2. Gather information
Watch among others:
- Website and social media
- Pricing policy and product range
- Customer reviews and testimonials
- News articles or press releases
- Marketing campaigns
3. Use analysis tools
Make use of tools such as:
- SEMrush or Ahrefs (for SEO and online visibility)
- SimilarWeb (for website traffic)
- LinkedIn (for organisational information and vacancies)
- Google Alerts (for up-to-date updates)
4. Analyse strengths and weaknesses
A simple SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for each competitor helps to recognise patterns.
5. Translate insights into action
Use your findings to make strategic decisions. Think about improving your product, adjusting your pricing, or repositioning your brand.
Finally, keep analysing
Competitive analysis is not a one-off exercise. Markets are constantly evolving, just like your competitors. Therefore, schedule regular moments to update your analysis – for example, every quarter or at the start of a new project.
A well-executed competitive analysis provides valuable insights that help you stand stronger in the market. By learning from your competitors and keeping a keen eye on their movements, you will be better prepared for change – and may even stay one step ahead of your competition.
