The Importance of 1. Competitor Research

In today's market environment, competition is becoming increasingly fierce. If enterprises want to gain advantages and growth in the market, they must understand their competitors, as well as their strategies, advantages, disadvantages, opportunities and threats. Through competitor research, companies can:

-Understand the current situation and trends of the market, as well as their relative position and competitiveness in the market;

-Identify and evaluate the core competencies and differentiating advantages of competitors, as well as their possible actions and reactions;

-identify and analyze competitors' weaknesses and vulnerabilities, as well as the threats and risks they face;

-Seek out and capture customer needs and market openings that competitors fail to meet or ignore, as well as opportunities and resources that they fail to take advantage of or give up;

-Based on competitors' information, formulate your own competitive strategy and action plan to improve your competitive advantage and market share.

Methods and procedures for 2. competitor research

Competitor research is a systematic process that needs to be carried out in accordance with certain methods and steps. In general, competitor research can be divided into the following four steps:

-Identify the scope and type of competitors. The scope of competitors refers to all enterprises that compete with the enterprise in the same market or the same market segment, and the type of competitors refers to the classification of competitors into different categories, such as direct competitors, indirect competitors, potential competitors, etc., according to the size, position, strategy, objectives and other factors of competitors. Identifying the scope and type of competitors helps companies narrow the scope and focus of their research, as well as determining the depth and breadth of their research.

-Collect competitor information. Competitor information refers to all kinds of data, facts, opinions, evaluations, etc. related to competitors, including competitors' basic information, products and services, prices and costs, channels and distribution, marketing and promotion, technology and innovation, finance and quality, manpower and organization, culture and value, etc. Collecting competitor information requires the use of a variety of information sources and information tools, such as public information sources (such as official websites, annual reports, news, social media, etc.), private information sources (such as insiders, suppliers, customers, partners, etc.), first-hand information tools (such as interviews, questionnaires, observations, trial purchases, etc.), second-hand information tools (such as reports, databases, analysis software, etc.).

-Analyze competitor information. Analysis of competitor information refers to the collation, induction, comparison, evaluation, interpretation, etc. of the collected competitor information in order to arrive at valuableConclusionand revelation. Analyzing competitor information requires the use of various analytical methods and models, such as SWOT analysis, Porter's five-force analysis, value chain analysis, strategic group analysis, and market community analysis.

-Develop competitive strategies and action plans. Developing a competitive strategy and action plan refers to determining one's competitive objectives, competitive advantages, competitive strategies and competitive actions based on the results of competitor information analysis in order to respond to competitor threats and seize market opportunities. The development of competitive strategies and action plans requires consideration of one's own resources and capabilities, customers and needs, markets and the environment, as well as the possible reactions and changes of competitors.

3. Competitor Research Cases

In order to better illustrate the process and effect of competitor research, the following shows how to identify and seize market opportunities through competitor research, combined with some cases provided by Shangpu Consulting for clients.

Case 1: Providing competitor research services for an e-commerce platform

An e-commerce platform wants to enter a new market, but lacks understanding of its competitors and market opportunities, so it entrusts Champu Consulting to provide competitor research services. Champ Consulting conducted a competitor survey as follows:

-Identify the scope and type of competitors. Through market research and Internet search, Shangpu Consulting has identified five major competitors in the market, namely A, B, C, D and E, of which A and B are direct competitors, C and D are indirect competitors, and E is a potential competitor. Champu Consulting decided to conduct an in-depth survey of these five competitors to understand their strategies, strengths, weaknesses, opportunities and threats.

-Collect competitor information. Through a variety of information sources and information tools, Champ Consulting collects all aspects of competitors' information, including their basic situation, products and services, prices and costs, channels and distribution, marketing and promotion, technology and innovation, finance and quality, people and organization, culture and value, etc. Champ Consulting has compiled this information into a detailed competitor information report for customers' reference.

-Analyze competitor information. Champ Consulting used SWOT analysis and Porter's five-force analysis to analyze competitor information and came up with the followingConclusionand revelation:

A is the leader in this market, with the most users and the highest market share, its advantage is the diversity and quality of products and services, as well as brand awareness and loyalty, its disadvantage is the high price and cost, and the dependence of channels and distribution, its opportunity is the growth and innovation of the market, and its threat is the challenge of competitors and the change of policies.

B is the challenger of the market, with more users and higher market share, its advantage is the low price and cost, as well as the active marketing and promotion, its disadvantage is the single and low end of products and services, and the lack of technology and innovation, its opportunity is the expansion and differentiation of the market, and its threat is the loss of users and quality complaints.

C is the follower of this market, has a small number of users and a low market share, its advantage is the wide range of channels and distribution, and the flexibility of manpower and organization, its disadvantage is the imitation and lack of products and services, and the brand is unknown and distrust, its opportunity is the segmentation and customization of the market, its threat is the suppression of competitors and the saturation of the market.

D is a new entrant in the market, with a trace of users and a very low market share, its advantage is the advanced technology and innovation, as well as the unique culture and value, its disadvantage is the unknown and unstable products and services, as well as financial and quality deficiencies, its opportunity is the market change and breakthrough, its threat is the market resistance and exclusion.

E is a potential competitor in this market, which has not entered the market at present, but is likely to enter in the future, its advantage is the adequacy of resources and capabilities, and the clarity of objectives and strategies, its disadvantage is the unfamiliarity and unadaptation of the market, and the ununderstanding and unsatisfaction of customers and needs, its opportunity is the gap and demand of the market, and its threat is the resistance and competition of the market.

-Develop competitive strategies and action plans. Based on the results of the competitor information analysis, Champu Consulting has proposed the following competitive strategies and action plans for its clients:

For A, a differentiated competitive strategy is adopted, I .e. by providing products and services different from A to meet different customer needs and market segments, thus forming a differentiated advantage with A. Specific action plans include: developing and launching some new products and services, such as personalized customization, social sharing, smart recommend, etc., to attract and retain more users; reducing and optimizing their own prices and costs to improve their own Profits and competitiveness; strengthen and expand their own channels and distribution to cover more regions and customers; increase and innovate their own marketing and promotion, to increase their brand awareness and loyalty.

For B, a quality leadership strategy is adopted, that is, by providing higher product and service quality than B, in order to win more customer trust and satisfaction, so as to form a quality leadership advantage with B. Specific action plans include: improving and ensuring the quality of their products and services, such as adopting better materials, processes, technologies, standards, etc., to improve their products and services; establishing and improving their own quality management system, such as establishing Quality inspection, quality control, quality improvement and other mechanisms to ensure the quality of their products and services; increase and strengthen their own quality publicity and quality assurance, such as the release of quality reports, quality certification, quality commitment, etc., in order to enhance their quality reputation and quality reputation.

For C, adopt a leader strategy, that is, by providing more advanced products and services than C to lead the development and change of the market, so as to form a leader advantage with C. Specific action plans include: speeding up and strengthening their own technology and innovation, such as investing more research and development resources, introducing more innovative talents, establishing more innovation platforms, etc., to launch more new technologies and new products; Seize and occupy market opportunities, such as using their own channels and distribution advantages to quickly and widely promote their own new technologies and new products, in order to win more market share; cultivate and shape the market demand, such as using their own marketing and promotion advantages, effectively and interestingly spread their own new technologies and new products to stimulate more market demand.

For D, the cooperative competition strategy is adopted, that is, through cooperation with D, in order to achieve mutual complementarity and win-win, so as to form a cooperative competitive advantage with D. Specific action plans include: looking for and establishing cooperative relations with D, such as signing cooperation agreements, establishing cooperation mechanisms, setting up cooperation projects, etc., to achieve the sharing and exchange of resources and capabilities of both parties; respecting and protecting the interests of cooperation with D, such as abiding by cooperation rules, maintaining cooperation trust, resolving cooperation conflicts, etc., to ensure the effectiveness and cooperation of both parties; explore and expand the cooperation space with D, such as seeking new areas, new ways and new goals of cooperation, so as to increase the value and opportunities of cooperation between the two sides.

For E, a defensive competitive strategy is adopted, that is, by preventing and resisting the entry of E to maintain its own market position and interests, so as to form a defensive competitive advantage with E. The specific action plan includes: monitoring and predicting E's entry intention, such as collecting and analyzing E's relevant information, evaluating and judging E's entry possibility, formulating and preparing E's entry response, etc., so as to prevent E's entry in advance; Set up and strengthen E's entry barriers, such as using its own product and service advantages to increase E's entry cost and risk.

-Set and strengthen E's entry barriers, such as using its own product and service advantages to increase E's entry costs and risks, such as using its own brand and customer advantages to reduce E's entry attractiveness and return, such as using its own channels and Distribution advantages, limit E's entry scope and speed, such as using its own marketing and promotion advantages, increase E's entry pressure and competition, such as the use of their own technology and innovation advantages to prevent E from entering breakthroughs and changes;

-Monitor and respond to E's entry actions, such as timely detection and feedback of E's entry signs, trends, impacts, etc., such as effectively adjusting and optimizing its own competitive strategies and action plans, such as actively striving for and maintaining its own market position and interests, such as effectively resisting and combating E's entry threats and challenges.

Case 2: Competitor research for an automobile manufacturer

A car manufacturer wants to develop a new electric car, but lacks understanding of competitors and market opportunities in this field, so it entrusts Champ Consulting to provide competitor research services. Champ Consulting conducted a competitor survey as follows:

-Identify the scope and type of competitors. Through market research and web search, Shangpu Consulting has identified four major competitors in this field, namely F, G, H and I, of which F and G are direct competitors and H and I are indirect competitors. Champu Consulting decided to conduct in-depth research on these four competitors to understand their strategies, strengths, weaknesses, opportunities and threats.

-Collect competitor information. Through a variety of information sources and information tools, Champ Consulting collects all aspects of competitors' information, including their basic situation, products and services, prices and costs, channels and distribution, marketing and promotion, technology and innovation, finance and quality, people and organization, culture and value, etc. Champ Consulting has compiled this information into a detailed competitor information report for customers' reference.

-Analyze competitor information. Shangpu Consulting used value chain analysis and strategic group analysis to analyze competitor information and concluded the following.Conclusionand revelation:

F is the leader in this field, has the most users and the highest market share, its advantage is the high-end and innovation of products and services, as well as brand awareness and loyalty, its disadvantage is the high price and cost, and the saturation of the market, its opportunity is the growth and change of the market, its threat is the challenge of competitors and the change of policies.

G is the challenger in this field, with more users and higher market share, its advantage is the low price and cost, and the wide range of channels and distribution, its disadvantage is the low end and imitation of products and services, and the lack of technology and innovation, its opportunity is the expansion and differentiation of the market, and its threat is the loss of users and quality complaints.

H is a follower in this field, has a small number of users and a low market share, its advantage is the variety and customization of products and services, and the flexibility of manpower and organization, its disadvantage is the instability and ignorance of products and services, and the brand is unknown and distrust, its opportunity is the segmentation and customization of the market, its threat is the suppression of competitors and the saturation of the market.

I is a new entrant in this field, with a trace of users and a very low market share, its advantages are advanced technology and innovation, and unique culture and value, its disadvantages are unknown and unstable products and services, and financial and quality deficiencies, its opportunities are market changes and breakthroughs, and its threats are market resistance and exclusion.

-Develop competitive strategies and action plans. Based on the results of the competitor information analysis, Champu Consulting has proposed the following competitive strategies and action plans for its clients:

For F, a differentiated competitive strategy is adopted, that is, by providing products and services different from F to meet different customer needs and market segments, so as to form a differentiated advantage with F. Specific action plans include: developing and launching some new products and services, such as smart driving, wireless charging, environmentally friendly materials, etc., to attract and retain more users; reducing and optimizing their own prices and costs to improve their own Profits and competitiveness; strengthen and expand their own channels and distribution to cover more regions and customers; increase and innovate their own marketing and promotion, to increase their brand awareness and loyalty.

For G, adopt a quality leadership strategy, that is, by providing higher product and service quality than G, in order to win more customer trust and satisfaction, so as to form a quality leadership advantage with G. Specific action plans include: improving and ensuring the quality of their products and services, such as adopting better materials, processes, technologies, standards, etc., to improve their products and services; establishing and improving their own quality management system, such as establishing Quality inspection, quality control, quality improvement and other mechanisms to ensure the quality of their products and services; increase and strengthen their own quality publicity and quality assurance, such as the release of quality reports, quality certification, quality commitment, etc., in order to enhance their quality reputation and quality reputation.

For H, adopt a leader strategy, that is, by providing more advanced products and services than H to lead the development and change of the market, so as to form a leader advantage with H. Specific action plans include: accelerating and strengthening their own technology and innovation, such as investing more research and development resources, introducing more innovative talents, establishing more innovation platforms, etc., to launch more new technologies and new products; Seize and occupy the market opportunities, such as using their own channels and distribution advantages, quickly and widely promote their own new technologies and new products, in order to win more market share; cultivate and shape the market demand, such as using their own marketing and promotion advantages, effectively and interestingly spread their own new technologies and new products to stimulate more market demand.

For I, the cooperative competition strategy is adopted, that is, through cooperation with I, in order to achieve mutual complementarity and win-win, so as to form a cooperative competitive advantage with I. Specific action plans include: looking for and establishing cooperative relations with I, such as signing cooperation agreements, establishing cooperation mechanisms, setting up cooperation projects, etc., to achieve the sharing and exchange of resources and capabilities of both parties; respecting and protecting the interests of cooperation with I, such as abiding by cooperation rules, maintaining cooperation trust, resolving cooperation conflicts, etc., to ensure the effectiveness and cooperation of both parties; explore and expand the cooperation space with I, such as seeking new areas, new ways and new goals of cooperation, so as to increase the value and opportunities of cooperation between the two sides.