How to Conduct a Competitive Analysis

Summary

This lesson introduces competitive analysis as a strategic tool for assessing how a company measures up against its direct and indirect competitors. It outlines the benefits, including informed decision-making, identification of strengths and weaknesses, and uncovering market opportunities. Key components of a competitive analysis template include company highlights, market information, product information, and a SWOT analysis. An example illustrates the comparison between a company and its competitor, emphasizing differences in marketing strategies and product offerings. The lesson concludes by highlighting the importance of strategic analysis in defining unique selling propositions and identifying growth opportunities.

Takeaways

• 😀 Competitive analysis is a strategic tool for comparing your company to direct and indirect competitors.
• 📊 Direct competitors offer the same products/services, while indirect competitors meet similar customer needs with different offerings.
• 🔍 Benefits of competitive analysis include improved strategic decision-making and identification of market opportunities.
• 🏷️ Understanding both strengths and weaknesses of your company and competitors is crucial for effective analysis.
• 📈 The competitive analysis template should cover four main areas: company highlights, market information, product information, and SWOT analysis.
• 📋 Company highlights should include the company profile and key competitive advantages.
• 🎯 Market information must define the target market, market share, and marketing strategies used by the company.
• 💰 Product information should outline the types of products/services offered, their pricing, and distribution channels.
• ⚡ SWOT analysis involves evaluating strengths, weaknesses, opportunities, threats, and relevant trends affecting the market.
• 🌐 Recognizing broader trends, such as the rise of online learning, can provide insights into potential opportunities for your business.

Q & A

What is competitive analysis?

Competitive analysis is a strategic tool that examines how a company compares to both its direct and indirect competitors.

How are direct and indirect competitors defined?

Direct competitors sell the same products and services, while indirect competitors offer different products that satisfy similar needs, sometimes switching industries.

What are the benefits of performing a competitive analysis?

Benefits include assisting in strategic decision-making, highlighting strengths and weaknesses, uncovering market opportunities, and informing the company's value proposition.

What are the four broad factors considered in a competitive analysis?

The four factors are company highlights, market information, product information, and SWOT analysis.

What is included in the 'company highlights' section of a competitive analysis?

This section includes a company profile, which provides a summary of the company, and identifies its key competitive advantage.

What kind of information is gathered in the 'market information' section?

This section covers the target market demographics, market share percentage, and the marketing strategies used to reach customers.

What does the 'product information' section entail?

It includes descriptions of products and services, pricing for key offerings, and the distribution channels used to deliver products to customers.

What does SWOT stand for, and what does it analyze?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and it analyzes both internal factors (strengths and weaknesses) and external factors (opportunities and threats).

How does trends analysis differ from traditional SWOT analysis?

Trends analysis broadens the focus beyond internal factors to consider significant market trends that can impact the business.

Can you provide an example of a competitive analysis from the video?

An example includes comparing two companies where Company A has a subscription model with a significant organic reach, while Company B sells individual courses. This highlights their key differences and opportunities.