Benefits of competitor analysis: A step-by-step guide
It’s a busy, crowded and competitive world out there.
While competition isn’t a bad thing, it is essential to be aware and also keep one step ahead of what your competitors are up to. Staying ahead of the competition is a necessity for business growth and success.
Conducting a regular competitor analysis is a powerful tool that can help you gain that competitive edge. By understanding what your competitors are doing, you can identify opportunities, mitigate threats, and refine your marketing strategy to attract and retain customers.
In this guide, we’ll take you through the step-by-step process of competitor analysis, highlight the numerous benefits of competitor analysis and what it will bring to your business.
Why competitor analysis is important
Competitor analysis offers invaluable insights into your industry and helps you make informed decisions about your business strategy, so it’s really important to understand why it holds such significance. Here is why competitor analysis is important.
Understanding the market dynamics
Competitor analysis allows you to gain valuable insights into the dynamics of your industry. By studying your competitors, you can identify market trends, consumer preferences, and emerging opportunities, which are essential for shaping your marketing strategy.
Uncovering strengths and weaknesses
Analysing your competitors helps you benchmark your own strengths and weaknesses against industry standards. By understanding where you stand in comparison to your rivals, you can capitalise on your strengths and address your weaknesses more effectively.
SWOT analysis: A strategic approach
SWOT analysis, an acronym for Strengths, Weaknesses, Opportunities, and Threats, is a strategic planning tool used to identify and evaluate the internal and external factors that affect a business or organisation.
This structured approach enables you to identify internal ‘strengths’ and ‘weaknesses’, as well as external ‘opportunities’ and ‘threats’, that may impact your business.
One of the key benefits of competitor analysis is it provides a comprehensive understanding of your business, offering clarity that will guide strategic decision-making.
Catch up – stay ahead – overtake
Depending on where you are at with your business, a competitor analysis will give you valuable information on how to either catch up with your competitors or ensure you have the time and knowledge to stay ahead of them in the market.
The business world is littered with examples of industry leaders, who rested on their laurels and forgot to keep a close eye on their competitors, and then fell behind! You’ve only got to think of the mobile phone industry, and Blackberry and Nokia will quickly spring to mind!
However, the aim should not be just keeping up with your competitors. Did you set up your business to be average? Probably not. You can use the benefits of competitor analysis to catch up, and then to overtake them!
The step-by-step guide to competitor analysis
Now that we’ve established the importance of competitor analysis, let’s break down the process into actionable steps.
Step 1: Identify your competitors
It may seem obvious but the first step is to identify who your competitors are. These could be direct competitors offering similar products or services, as well as indirect competitors targeting the same target market but with different offerings. You don’t want to just be comparing yourself to average, but against the very best in your industry and in the market more widely.
Step 2: Gather information
Once you’ve identified your competitors, gather lots of information about them. This could include their market share, strengths and weaknesses, target market, target audiences, products and services, pricing strategies, and marketing tactics.
Step 3: Conduct SWOT analysis
With the gathered information, conduct a SWOT analysis for each of your competitors. Identify their strengths, weaknesses, opportunities, and threats, and compare them to your own.
Step 4: Analyse competitive landscape
Analyse the competitive landscape by assessing the overall market dynamics, including industry trends, regulatory factors, and technological advancements. This will provide context for understanding your competitors’ strategies.
Step 5: Identify competitive advantage
Based on your analysis, identify your competitive advantage – what sets you apart from your competitors? Whether it’s superior product quality, exceptional customer service, or innovative marketing strategies, leverage your strengths to stand out in the market. Also ask yourself the question, how are you going to stay competitive?
Step 6: Refine your marketing strategy
Finally, use the insights gained from competitor analysis to refine your marketing strategy. Identify opportunities to differentiate your brand, address potential threats, and capitalise on emerging trends, ultimately strengthening your position in the market.
Why is competitive analysis important in SEO?
Competitive analysis in SEO (Search Engine Optimisation) plays a huge role in increasing online visibility and driving organic traffic to your website.
Staying updated on your competitors’ SEO efforts enables you to adapt and maintain a competitive edge in search engine results pages (SERPs), allowing you to tailor your approach for maximum impact and ultimately driving more organic traffic to your website.
So, what does an SEO competitor analysis involve?
Keyword research
Analysing competitors’ keyword strategies helps to discover new keyword opportunities and refine keyword targeting.
Backlink analysis
Understanding competitors’ backlink profiles provides insights into effective link-building strategies and potential link opportunities for your website.
Content gap analysis
Identifying gaps in competitors’ content allows the opportunity to create unique and valuable content that fills those gaps and attracts more organic traffic.
Harness the power and benefits of competitor analysis with Growth by Design!
In conclusion, competitor analysis is a vital component of any successful digital marketing strategy.
But you don’t have to do this yourself, we have a team of marketing experts who are highly skilled in digital marketing and have access to a range of tools to give you the insights you need to create a powerful marketing strategy that delivers results, so you can reap the benefits of competitor analysis.
At Growth by Design, we take the time to research and analyse your competitors thoroughly. The insights we gain for you will be invaluable for driving growth and success for your business.
Why not take advantage of our expertise and discover the benefits of competitor analysis with Growth by Design?
Contact the team at Growth by Design today and let us help pave the way for your sustainable growth and success.
