Purpose of 1. Competitor Analysis

What is the purpose of competitor analysis? Simply put, it is to enable companies to better understand themselves and their competitors so that they can make more informed decisions. Specifically, competitor analysis can help companies achieve the following goals:

Identify competitors. Competitors are not only companies that provide the same or similar products or services, but also include other stakeholders that may affect the interests of the company, such as suppliers, distributors, substitute providers, potential entrants, etc. By identifying competitors, companies can identify their competitive environment and determine their scope and object of competition.

Assess the strengths and weaknesses of competitors. The strengths and weaknesses of competitors refer to the competitiveness of competitors in the market relative to the enterprise, including competitors' resources, capabilities, strategies, products, prices, channels, brands, customers, finance, innovation and so on. By evaluating the strengths and weaknesses of competitors, enterprises can understand the gap between themselves and their competitors, find out their core competitiveness and competitive weaknesses, and formulate corresponding improvement measures.

Discover potential opportunities and threats. Potential opportunities and threats refer to the factors in the competitive environment that may have a positive or negative impact on the enterprise, including market demand, consumer behavior, technological change, laws and regulations, social culture, political economy and so on. By identifying potential opportunities and threats, companies can grasp market dynamics, predict market trends, seize market opportunities, and avoid market risks.

Develop effective competitive strategies. Competitive strategy refers to the action plan taken by an enterprise to gain competitive advantage in the market, including product strategy, price strategy, channel strategy, promotion strategy, brand strategy, innovation strategy and so on. By formulating effective competitive strategies, companies can increase their market share, enhance their market position, enhance their market influence, and achieve their market goals.

2. methods of competitor analysis

What are the methods of competitor analysis? According to different analysis purposes and analysis content, the methods of competitor analysis can be divided into the following:

Market research method. Market research is a method of evaluating the market performance and market potential of competitors by collecting, collating and analyzing market-related information to understand the current situation, characteristics, size, structure, changes, etc. The main methods of market research are questionnaires, interviews, observational studies, and experimental studies.

SWOT analysis. SWOT analysis is a method of assessing the overall strength and development prospects of competitors by analyzing their strengths (Strengths), weaknesses (Weaknesses), opportunities (Opportunities) and threats (Threats). The main steps of SWOT analysis include determining the object of analysis, collecting analysis information, constructing SWOT matrix, and formulating countermeasures and suggestions.

4P analysis method. 4P analysis is a method of evaluating competitors' marketing strategies and marketing effectiveness by analyzing competitors' products (Product), prices (Price), channels (Place), and promotions (Promotion). The main contents of 4P analysis include product characteristics, functions, quality, brand, packaging, etc.; price level, structure, elasticity, strategy, etc.; channel type, level, coverage, management, etc.; promotion objectives, means, content, effect, etc.

Value chain analysis. Value chain analysis is a method of assessing a competitor's ability to create value and the efficiency of value creation by analyzing the competitor's primary and ancillary business activities. The main framework for value chain analysis is Porter's value chain model, which includes major business activities (internal logistics, production, external logistics, marketing and sales, after-sales service) and ancillary business activities (procurement, technology development, human resource management, infrastructure).

Steps to 3. competitor analysis

What are the steps for competitor analysis? Depending on the analysis method, the steps for competitor analysis may vary, but can generally be summarized into the following five steps:

Identify analysis objectives. The goal of analysis refers to the purpose and significance of the enterprise's competitor analysis, which is the starting point and destination of competitor analysis. Determining analysis objectives can help companies clarify the direction and scope of analysis, select appropriate analysis methods and tools, and develop a reasonable analysis plan and analysis budget.

Identify the objects of the analysis. The object of analysis refers to the main body of the enterprise's competitor analysis, which is the core and focus of competitor analysis. Identifying the object of analysis can help companies identify and screen out competitors with whom they have direct or indirect competition, determine the type and number of competitors, and analyze the characteristics and attributes of competitors.

Collect analysis information. Analysis of information refers to the enterprise to carry out competitor analysis of the basis, is the competitive analysis of competitor information, is the basis of competitor analysis, is the key and difficult point of competitor analysis. Collecting analytical information can help enterprises to obtain and integrate all kinds of data and information about competitors, establish a competitor's information base, and improve the effectiveness and accuracy of competitor analysis. The main sources for collecting and analyzing information are public sources (such as official websites, annual reports, news, advertisements, etc.), private sources (such as insiders, suppliers, customers, partners, etc.), and professional sources (such as industry associations, consulting institutions, research institutions, experts and scholars, etc.).

Analyze the analysis information. Analysis and analysis information refers to the process of processing, processing, summarizing and summarizing the collected analysis information by using appropriate analysis methods and analysis tools, so as to obtain valuable analysis results. Analysis and analysis of information can help enterprises to reveal the characteristics of competitors, laws, trends, problems, opportunities, etc., the formation of competitor analysis report, for the formulation of competitive strategy to provide a basis and reference.

Develop a competitive strategy. The formulation of competitive strategy refers to the process by which an enterprise determines its competitive objectives and competitive advantages according to the results of the analysis, chooses the appropriate competitive mode and means, and formulates specific competitive actions and measures, so as to gain competitive advantage in the market. Developing competitive strategies can help enterprises achieve their competitive goals, improve their competitiveness, and enhance their competitiveness.

Case for 4. competitor analysis

What are the cases of competitor analysis? In order to enable enterprises to better understand and apply competitor analysis, this article will introduce some cases of competitor analysis provided by Champ Consulting for customers, as well as the professional services and successful experience of Champ Consulting in competitor analysis.

Case 1: Competitor analysis of an e-commerce platform. The platform is an e-commerce platform that focuses on providing personalized customization services, mainly for young consumers, providing customized services for clothing, accessories, home furnishings and other products. The platform hopes to understand its competitive position in the e-commerce industry through competitor analysis, evaluate its competitive advantages and disadvantages, discover its own competitive opportunities and threats, and formulate its own competitive strategy. Champ Consulting provides the following competitor analysis services for the platform:

Identify competitors. Through market research, Shangpu Consulting has determined that the main competitors of the platform are as follows: one is e-commerce platforms that provide the same or similar products and services, such as Taobao, Jingdong, Vipshop, etc.; the second is to provide different but alternative E-commerce platforms for products and services, such as Amazon, Dangdang, Netease, etc.; the third is to provide different e-commerce platforms with potential competition, such as Duoduo, Meituan, Hungry, etc.

Product strategy: adhere to the characteristics of personalized customized services, provide more product types and customization options, meet the needs and preferences of different consumers, and improve product differentiation and added value.

Price strategy: Adopt high-end pricing strategy to reflect the quality and value of the product, attract high-end consumers, and improve the profit margin and brand image of the product.

Channel strategy: Use our own platforms and social media to establish direct contact with consumers, provide better services and experiences, and enhance consumer loyalty and reputation.

Promotion strategy: Use online marketing and word-of-mouth marketing to increase the visibility and influence of the platform, attract more potential consumers, and expand the market share of the platform.

Brand strategy: create the brand image of personalized customized services, convey the core values and concepts of the platform, shape the professionalism and reputation of the platform, and enhance the competitiveness and attractiveness of the platform.

Innovation strategy: strengthen technology research and development and innovation, improve the function and efficiency of the platform, optimize the design and process of the platform, and improve the level and standard of the platform.

Case 2: Competitor analysis of an automobile manufacturer. The manufacturer is an automobile manufacturer focusing on providing new energy vehicles, mainly for consumers with strong environmental awareness, providing energy-saving, low-carbon, and smart new energy vehicles. The manufacturer hopes to understand its competitive position in the automotive industry through competitor analysis, evaluate its competitive advantages and disadvantages, discover its competitive opportunities and threats, and formulate its own competitive strategy. Champ Consulting provided the manufacturer with the following competitor analysis services:

Identify competitors. Through market research, Shangpu Consulting has determined that the main competitors of the manufacturer are as follows: first, automobile manufacturers that provide the same or similar products and services, such as Tesla, BYD, Weilai, etc.; second, automobile manufacturers that provide different but alternative products and services, such as Toyota, Honda, Nissan, etc.; third, automobile manufacturers that provide different but potentially competitive relationships, such as Mercedes-Benz, BMW, Audi, etc.

Develop a competitive strategy. Based on the results of the analysis, Champ Consulting developed the following competitive strategy for the manufacturer:

Product strategy: adhere to the characteristics of new energy vehicles, provide more product types and performance options, meet the needs and preferences of different consumers, and improve product differentiation and added value.

Price strategy: Adopt high-end pricing strategy to reflect the quality and value of the product, attract high-end consumers, and improve the profit margin and brand image of the product.

Channel strategy: Use our own platforms and social media to establish direct contact with consumers, provide better services and experiences, and enhance consumer loyalty and reputation.

Promotion strategy: use network marketing and word-of-mouth marketing to improve the visibility and influence of manufacturers, attract more potential consumers, and expand the market share of manufacturers.

Brand strategy: create the brand image of new energy vehicles, convey the core values and ideas of manufacturers, shape the professionalism and reputation of manufacturers, and enhance the competitiveness and attractiveness of manufacturers.

Innovation strategy: strengthen technology research and development and innovation, improve the function and efficiency of manufacturers, optimize the design and process of manufacturers, and improve the level and standard of manufacturers.

The competitor analysis service provided by Champu Consulting helps the manufacturer to better understand itself and its competitors, formulate effective competitive strategies, improve its market performance and market position, and achieve its market objectives.