The significance of competitor research

Competitor research is an important source of enterprise innovation, mainly in the following aspects:

Raise awareness of competition. Competitor research can make enterprises clearly aware of their competitive environment, as well as the strength and trend of competitors, so as to enhance the enterprise's sense of crisis and urgency, and stimulate the enterprise's sense of competition and innovation.

Optimize competitive strategies. Competitor research can help companies analyze their strengths and weaknesses, as well as the strengths and weaknesses of competitors, so as to develop appropriate competitive strategies, such as attack, defense, cooperation, avoidance, etc., and the corresponding marketing mix, such as products, prices, channels, promotions, etc., to improve the competitiveness and market share of enterprises.

Discover innovation opportunities. Competitor research can help companies discover market opportunities and threats, as well as competitors' innovative behaviors and results, thereby stimulating their innovative thinking and innovation capabilities, and prompting companies to innovate in products, services, technologies, and models to meet customers The needs and expectations of the company, as well as the performance of surpassing competitors.

Creating differentiated value. Competitor research can help companies identify their own and competitors' differentiators, such as brand, quality, function, design, service, etc., so as to create valuable differentiated products and services to attract and retain customers, as well as improve customer loyalty and satisfaction.

Methodology for competitor research

There are several main methods of competitor research:

Desktop research. Desktop research refers to the use of existing public information, such as competitors' official websites, annual reports, news, social media, patents, papers, etc., to collect and analyze competitors' basic situation, strategic direction, product characteristics, market performance, technical level, etc. The advantages of desktop research are low cost, fast speed, and wide range, but the disadvantage is that the information may be inaccurate, incomplete, and untimely.

Field trips. Field visits refer to the observation and evaluation of competitors' production capacity, crisis management and other aspects of information by personally or entrusting third parties to competitors' factories, stores, exhibitions and other places. The advantages of field visits are that the information is true and reliable, intuitive and specific, in-depth and detailed, and can obtain internal and dynamic information of competitors, but the disadvantages are that the cost of information acquisition is high, the operation is difficult, and it may cause resentment and obstruction from competitors.

In-depth interviews. In-depth interviews refer to communicating and communicating with competitors' employees, customers, suppliers, partners, industry experts, media professionals and other relevant personnel through telephone, video, email, face-to-face, etc., to collect competitors' information. The core and key of opponent research. In-depth interviews can help companies obtain information about competitors' strategic intentions, development directions, innovation plans, product optimization, price changes, marketing strategies, channel expansion, service improvement, etc., as well as competitors' strengths and weaknesses, opportunities and threats, and problems. Information about challenges, satisfaction and loyalty. The advantages of in-depth interviews are rich and diverse information, timely updates, depth and breadth, and the ability to obtain internal and dynamic information about competitors, but the disadvantages are high cost of information acquisition, difficult to operate, and may involve sensitive and confidential information.

Network monitoring. Network monitoring refers to the real-time tracking and analysis of competitors' activities and performance on the network through professional software or platform to collect competitors' information, which is the emerging trend of competitor research. Network monitoring can help companies obtain information about competitors' website traffic, search rankings, social media, online reviews, online advertising, online activities, online public opinion, etc., as well as competitors' online influence, online word-of-mouth, online crises, etc. Information. The advantages of network monitoring are low cost of information acquisition, simple operation, rapid update, wide coverage, access to competitors' internal and dynamic information, but the disadvantage is that the quality of information is different, difficult to verify, the need for professional technology and tools.

Steps for competitor research

The main steps of competitor research are as follows:

Identify competitors. Identifying competitors is the first and most important step in competitor research. The purpose of identifying competitors is to clarify the scope and object of competitor research and to avoid wasting time and resources on irrelevant or unimportant competitors. There are many ways to determine competitors. For example, according to market share, growth rate, profit margin and other indicators, the main competitors in the market are selected; according to product categories, functions, characteristics, prices and other attributes, the direct competitors on the product are selected; according to customer needs, preferences, satisfaction and other factors, the potential competitors in the minds of customers are selected; according to the influence of industry trends, technological changes, policies and regulations, screening possible future competitors. The principle of determining competitors is to be comprehensive, objective, flexible and dynamic, and not to ignore any competitors that may pose a threat or opportunity to themselves.

Collect information. Collecting information is the second and most basic step in competitor research. The purpose of collecting information is to obtain all aspects of information about competitors and provide data and basis for subsequent analysis and utilization. There are many ways to collect information, for example, using desktop research, field visits, in-depth interviews, network monitoring, etc., to collect various information of competitors from different channels and angles; using professional tools and technologies to collect The information is sorted, classified, stored, and managed for subsequent use and update. The principle of collecting information is to be systematic, comprehensive, accurate and timely, and not to omit or ignore any information that may be useful or harmful to oneself.

Analyze the information. Analyzing information is the third and most central step in competitor research. The purpose of analyzing information is to understand and evaluate all aspects of the competitor's situation and to provide a basis and guidance for subsequent decisions and actions. There are many ways to analyze information, for example, using SWOT analysis, Porter's five forces analysis, value chain analysis, core competitiveness analysis and other models and frameworks to analyze competitors' strengths and weaknesses, opportunities and threats, value proposition and competitiveness; using comparative analysis, trend analysis, causal analysis, hypothesis testing and other techniques and methods, analyze competitors' strategies and behaviors, performance and results, trends and intentions, problems and challenges. The principle of analyzing information is to be objective, in-depth, logical and innovative, and not to view or evaluate competitors subjectively or unilaterally.

Use of information. Using information is the fourth and final step in competitor research. The purpose of using information is to develop and execute one's own strategies and actions based on the information and analysis of competitors in order to achieve one's own goals and vision. There are many ways to use information, such as identifying and grasping market opportunities, discovering and learning from competitors' good practices, avoiding and avoiding competitors' threats and risks, and improving and differentiating their competitiveness and value proposition based on competitors' information and analysis, formulate and adjust their own product strategy, price strategy, marketing strategy, channel strategy, service strategy, etc. to adapt to and lead the changes and needs of the market; according to the information and analysis of competitors, carry out and promote their own innovation projects, improvement plans, crisis management, risk control, etc., in order to improve their business level and management ability. The principle of using information is to be purposeful, targeted, planned, and executed, and not blindly or arbitrarily imitate or confront competitors.

Considerations for Competitor Research

Competitor research is a complex and important task that requires attention to the following aspects:

Compliance with the law and ethics. Competitor research is a legal and reasonable business activity, but it must also comply with relevant laws and regulations and business ethics, and do not use illegal or unethical means, such as theft, bribery, deception, threats, etc., to obtain competitors' information, otherwise it may cause legal liability and reputation damage.

Maintain objectivity and impartiality. Competitor research is an objective and fair analysis, do not be influenced by your own subjective emotions and biases, such as overconfidence, contempt, fear, jealousy, etc., to view or evaluate competitors, otherwise it may lead to distortion of information and misjudgment.

Protect the security and confidentiality of information. Competitor research is a sensitive and important strategic task. It is necessary to protect the information collected and analyzed by oneself and not to disclose it to competitors or other unrelated personnel, otherwise it may damage one's own interests and advantages.

Continuously updated and improved. Competitor research is a continuous and dynamic process. It is necessary to continuously update and improve your own information and analysis as the market changes and competitors change. Don't stay in the past information andConclusionOtherwise, the timeliness and accuracy may be lost.

Conclusion

Competitor research is an important source of enterprise innovation, which can help enterprises identify and grasp market opportunities, discover and learn from competitors' excellent practices, avoid and avoid competitors' threats and risks, and enhance and differentiate their own competitiveness and value proposition. Competitor research needs to follow certain purposes, methods, steps and precautions to ensure the effectiveness and reasonableness of competitor research. As a professional consulting company, Shangpu Consulting has rich experience and ability in competitor research. It can provide customers with customized competitor research services and help customers realize their own innovation and development.