If you’re starting a new business, chances are you’re doing it because you saw an opening in the market. You’re providing a unique solution, a better product, or a superior service for consumers. Those differentiators — unique, better, superior — are used in comparison to the competition. This research is critical to a successful launch. As a new business owner, you must know the playing field. How are they doing things? How can you model your business initiatives on their successes (while avoiding the pitfalls)? A competitor analysis will help answer those questions from day one.
A competitor analysis is the process of researching your competitors, their audience, and their actions. While conducting this study, you’ll be able to identify:
- Who your competitors are
- Their marketing/business strategies
- What’s working for them, and what isn’t
- Who their (and your) audience is
- Market trends/gaps