This task may be more challenging than you expect.įor example, Coke’s most obvious rival is Pepsi. But, they’re also competing against every other beverage brand that makes cola. And, they’re also competing against every other non-cola beverage. When conducting a competitive analysis, take a broad view of who your competitors may be. You may be missing out on a crucial group of competitors simply because you’ve kept your scope too narrow.īut, it’s also possible to cast your net too wide. So, how do you tell who your actual competitors are? If a potential competitor targets customers who are not your customers, they’re not truly your competition. So, start with a broad view and then narrow your list. This will give you the most accurate picture of your competitive landscape. Now that you know who your competitors are, it’s time to start gathering the information that will allow you to make informed decisions about your own business. This step will represent the bulk of your effort in your competitive analysis. The more comprehensive your research is, the better equipped you’ll be to draw informed conclusions and design effective strategies. Identify the products or services your competitor offers.ĭo they offer a wide range of products that support up-selling and cross-selling? Do they provide the same or similar products to yours? How are they different? Do they offer any products or services that you don’t? (And vice versa.) What are their unique selling propositions? How do they compare on quality and ease of use? Take note of the following topics when reviewing a competitor’s website.Īs every business’s online ambassador, websites should be dense with valuable pricing, product, and branding information. You must have a clear, unbiased understanding of how your product or service really stacks up to the competition. Rose-tinted glasses are not your friend here. What is your competitor charging for comparable products? Are they consistently charging more or less than your business? Are they building in additional value through gifts? Or do they lean on discounts to lower their prices? How do their prices compare to your other competitors? Do they offer a robust refund policy or money-back guarantee? Research their pricing (including discounts and gifts). Some businesses build their entire brand around competing on price. That may or may not be a model you want to embrace. Knowing how the competition is pricing their products and services is likely to reveal essential pricing trends that will help you price your products appropriately. Who is this business? What is their brand voice? Are there particular “personality” traits or values that stand out? Are there clear visual cues that support those traits and values? Do they have a strong logo? What is the most important brand message on their website?Ī well-composed business website should reveal the competitor’s brand positioning. If it doesn’t… well, that’s critical data, too. Once you’ve discovered your competitors’ branding weaknesses, it may become easier to see your own mistakes and opportunities for growth. Only 24% of people answer all 5 questions correctly.
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