A competitive analysis allows you to assess your competitor’s strengths and weaknesses in the marketplace, providing you with fuel to drive competitive advantage.
No business exists in a vacuum—competitive analysis is an integral part of any business and market plan. Whether you’re just getting started, moving into a new market, or doing a health check of your business, a competitive analysis will be invaluable.
A researcher will typically choose a few of your main competitors and analyze things like their marketing strategy, customer perceptions, revenue or sales volume, and so on.
Secondary sources such as articles, references, and advertising are excellent sources of competitive information; however, primary research, such as mystery shopping and focus groups can offer valuable information on customer service and current consumer opinions.