Competitive analysis reports help professionals understand business environments. To create one, identify competitors, learn about their products, strengths, and weaknesses, and analyze market prospects and strategies. Objectivity is key.
Professionals in industries such as marketing and sales use competitive analysis reports to better understand certain business environments. For example, automotive professionals could write a competitive analysis report to show marketers, executives, and shareholders what the automotive market looks like, why competitors succeed, and where they fail. When used correctly, this type of report can help a business find an unsaturated niche market, intelligently price products, and appeal to the most promising demographics. To create a competitive analysis report, it is important to be absolutely objective. In other words, you need to keep your feelings and hopes out of the process and collect and analyze data without expectations
Your first step in creating a competitive analysis report should be to identify who your competitors are. Sometimes this can be easy to do. If you’re interested in learning about the grocery stores in your city, for example, you only need to visit each one. Find out if they sell similar products to what your store sells. If you find learning the identities of your competitors to be more difficult, you may want to hire market researchers. They can reach out to members of your target demographic and find out where they go for relevant products or services.
Once your competitors have been identified, the next step in creating a competitive analysis report is to learn about the individual products your competitors sell. For this task, you can definitely benefit from hiring researchers. You should know how many competitors they sell their products for and what features of the products distinguish them from others in the market. A good market research initiative can help you understand why consumers prefer certain products and how they think they can be improved.
It’s also important to familiarize yourself with the strengths and weaknesses of competing companies. Again, this is an area where you can benefit from having professional researchers. You should try to find out how much competitors are paying for materials, what types of profit margins they generate, and what types of product demographics they are most popular with. This type of information can be quite difficult to come by as companies may not be required to make this data publicly available.
A good competitor analysis report should also include information regarding market prospects and what strategies competitor companies are using. For example, if a market perspective suggests that a new technology is altering consumer concerns, the report could illustrate how competing companies are responding to new needs and keeping pace with new trends. While it’s important to learn from other strategies, it may be more important to formulate unique perspectives that set your business apart from the competition.
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