Competitor analysis is the process of identifying businesses in your market that offer
similar products or services to yours and evaluating them based on a set of predetermined business
criteria.
A good competitor analysis will help you see your business and competitors
through your customer's eyes to pinpoint where you can improve.
A competitor analysis focuses on identifying market participants positioned to encroach on your
opportunity and isolates each participant's operational strengths, substantive weaknesses, product
offerings, market dominance, and missed opportunities
1. Analyzing your business against your competitors can help you in many ways. For example, it will reveal which areas of your business, product, or service need improvement. With this knowledge, you can adjust your processes to better serve your target market and increase profit. It can also show you new strategic opportunities to enhance your products or services and grow your business.
2. Once you conduct a competitor analysis, you can use it for benchmarking and measuring future growth.
3. Routine analyses will reveal market trends to keep track of and new players to be aware of.
4. It will also help reveal who your current competitors are throughout every stage of business. Be sure to keep your analyses up to date.