Purpose of 1. Competitor Analysis

The purpose of competitor analysis is to help companies gain competitive advantage in a highly competitive market, increase market share and profitability, and achieve sustainable development. Through competitor analysis, companies can:

Identify and evaluate your main competitors and learn about their size, products, price, quality, marketing, innovation, strengths and weaknesses;

Analyze the relative position of oneself and competitors, determine their core competitiveness and differentiation advantages, as well as the potential threats and opportunities of competitors;

Predict future trends and strategic intentions of competitors, as well as market trends and changes, so as to prepare for response and prevention;

Develop and implement effective competitive strategies against competitors, including offensive strategies, defensive strategies, cooperative strategies and adaptive strategies to improve their competitiveness and market position.

Methods and procedures for 2. competitor analysis

The methods and steps of competitor analysis can be adjusted and selected according to different situations and needs, but generally include the following aspects:

Determine the scope and type of competitors. The range and type of competitors can be divided according to different criteria, such as product category, market area, customer group, degree of competition, etc. Generally speaking, competitors can be divided into direct competitors, indirect competitors and potential competitors. A direct competitor is an enterprise that provides the same or similar products or services, an indirect competitor is an enterprise that provides substitutes or supplements, and a potential competitor is an enterprise that is likely to enter the market or expand its market share. Companies should focus on direct and potential competitors, as well as the impact of indirect competitors.

Collect competitor information. Competitor information can be obtained from a variety of channels and sources, such as public financial reports, official websites, social media, news reports, industry reports, customer feedback, market research, business intelligence, etc. The collection of competitors' information should follow the principles of legality, reasonableness and effectiveness, avoid infringement of competitors' privacy and trade secrets, and pay attention to the timeliness, accuracy and completeness of the information.

Analyze competitor information. Analyzing competitors' information is the core of competitor analysis and requires the use of various analytical tools and methods, such as SWOT analysis, Porter's Five Forces Model, value chain analysis, strategic group analysis, and competitive map analysis. The purpose of analyzing competitor information is to reveal the competitor's strengths and weaknesses, strategies and objectives, behaviors and motivations, capabilities and resources, risks and opportunities, etc., so as to assess the competitor's competitiveness and market position, as well as its own impact and threats.

Develop a competitive strategy. Developing a competitive strategy is the ultimate goal of competitor analysis, and it is necessary to select and implement a suitable competitive strategy based on the results of competitor analysis, taking into account one's strengths and weaknesses, objectives and resources. Competitive strategies can be divided into four basic types, namely, cost-leading strategies, differentiation strategies, concentration strategies, and integrated strategies. Cost leadership strategy refers to attracting customers at lower prices than competitors by reducing costs and improving efficiency. Differentiation strategy refers to the specific needs and preferences of customers by providing products or services that are different from those of competitors. A centralized strategy is one that gains loyalty and profitability by focusing on a particular market segment or customer group. An integrated strategy is the use of both cost leadership and differentiation strategies to outperform competitors on multiple fronts.

Case for 3. competitor analysis

Shangpu Consulting Company is a consulting company specializing in providing competitor analysis services. It has rich industry experience and professional team to provide customized competitor analysis solutions for customers in various industries. The following are specific examples of the competitor analysis services provided by Champ Consulting to its clients:

Case 1: An e-commerce platform company wants to enter the Chinese market, but faces fierce competition from local giants such as Alibaba, Jingdong, and Pinduoduo. Shangpu Consulting provides the company with competitor analysis services in China's e-commerce market, including detailed analysis of the size, products, prices, quality, marketing, innovation, strengths and weaknesses of major competitors, as well as forecasts of market trends and changes. Shangpu Consulting has also formulated a competitive strategy for the company in the Chinese market, including selecting appropriate market segments and customer groups, providing differentiated products and services, establishing cooperative relationships with local partners, and using social media and word-of-mouth marketing to improve brand awareness and reputation.

Case 2: An automaker wants to improve its competitiveness in the new energy vehicle market, but faces strong challenges from leading companies such as Tesla, BYD, and NIO. Shangpu Consulting provides the company with competitor analysis services in the new energy vehicle market, including in-depth analysis of the strategies, objectives, behaviors, motivations, capabilities, resources, risks and opportunities of major competitors, as well as forecasts of market trends and changes. Shangpu Consulting has also formulated a competitive strategy for the company in the new energy vehicle market, including choosing a cost-leading strategy, optimizing the supply chain, improving production efficiency, and reducing operating costs. to provide high-performance new energy vehicles at a price lower than competitors, but also pay attention to product innovation and brand building to improve customer satisfaction and loyalty.

Case 3: A catering chain company wants to expand its share in the domestic market, but faces fierce competition from international brands such as McDonald's, KFC, and Pizza Hut. Shangpu Consulting provides the company with competitor analysis services in the domestic catering market, including a comprehensive analysis of the products, prices, quality, marketing, innovation, strengths and weaknesses of major competitors, as well as a study of market needs and preferences. Shangpu Consulting has also formulated a competitive strategy for the company in the domestic catering market, including choosing a differentiation strategy to meet the diverse and personalized needs of domestic consumers by providing catering products and services that are different from competitors. At the same time, it also pays attention to product quality and safety to improve consumer trust and reputation.