How 1. define competitors

Competitors are other businesses or organizations that compete with the business for the same or similar customers and resources in the same market or industry. The definition of competitors is the first and most basic step in competitor research. If the definition is not accurate, it may lead to the scope of research is too large or too small, ignoring some important competitors, or wasting time and energy on some irrelevant competitors.

Competitors should be defined from the customer's point of view, taking into account the customer's needs, preferences, purchase behavior and other factors, to identify those who can meet the customer's needs of competitors, rather than just based on the similarity of products or services. For example, for a company that provides market research, investment consulting, IPO consulting and other services, such as Shangpu Consulting, its competitors include not only similar consulting companies, but also institutions that can provide similar or alternative services, such as accounting firms, law firms, appraisal agencies, investment banks, etc.

In defining competitors, care should also be taken to distinguish between direct and indirect competitors. A direct competitor is a competitor that provides the same or similar products or services in the same market segment as an enterprise. Indirect competitors are competitors that offer different but somewhat alternative products or services in different market segments. For example, for Shangpu Consulting, its direct competitors may be other consulting companies that also provide market research, investment consulting, IPO consulting and other services, such as Deloitte, PricewaterhouseCoopers, McKinsey, etc.; its indirect competitors may be companies that provide other types of consulting services, such as management consulting, strategic consulting, human resources consulting, etc., such as Accenture, Boston Consulting, McKinsey, etc.

When defining competitors, we should also consider the size, region, market share, growth rate and other factors of competitors to determine the strength and importance of competitors, so as to determine the focus and depth of research. Generally speaking, competitors with the same or larger scale, the same or wider region, the same or higher market share, and the same or faster growth rate should be regarded as important competitors and need more detailed and in-depth research; on the contrary, competitors with smaller scale, narrower region, lower market share and slower growth rate can be regarded as secondary competitors, only simple and general research is required.

2. how to collect and analyze competitor information

After defining the scope and focus of competitors, it is necessary to collect and analyze competitor information to understand the basic situation and competitive strategy of competitors, assess the strengths and weaknesses of competitors, and identify opportunities and threats of competitors. Competitor information can be obtained from a variety of sources and channels, including:

公开信息：这是最容易获取的信息，包括竞争对手的官方网站、公告、报告、新闻、广告、招聘、社交媒体等，可以了解竞争对手的企业概况、发展历程、业务范围、产品特点、品牌形象、市场动态、财务状况、组织结构、人才需求等。

Industry information: This is more professional information, including industry associations, industry media, industry reports, industry forums, industry exhibitions, industry experts, etc., you can understand the development trend of the industry, market size, market structure, market share, market demand, market forecast, industry standards, industry policies, etc.

Market information: this is more practical information, including customers, channels, suppliers, partners, employees, competitors, etc., can understand the competitor's market performance, market feedback, market satisfaction, market reputation, market influence, market problems, market opportunities, etc.

Secret information: This is the most difficult information to obtain, including competitors' internal documents, internal data, internal plans, internal strategies, internal personnel, internal resources, etc., to understand competitors' core competitiveness, core technology, core knowledge, core innovation, core team, core assets, etc.

When collecting competitor information, you should pay attention to the following points:

The sources of information should be as diverse as possible, and do not rely on only one or several channels, so as not to cause biased and one-sided information.

The quality of information should be as efficient as possible. Don't just pursue the quantity of information and ignore the validity, accuracy, timeliness and relevance of information.

Access to information should be as legal as possible, not to use illegal or unethical means, such as theft, bribery, deception, etc., so as not to create legal and moral and risk.

The use of information should be as reasonable as possible, do not abuse or disclose the information of competitors, so as not to damage the interests or reputation of competitors, or cause competitors to counterattack or retaliate.

When analyzing competitor information, the following points should be noted:

The purpose of the analysis should be clear, not to analyze for the sake of analysis, but to determine the focus and direction of the analysis according to the strategic objectives and problems of the enterprise.

The method of analysis should be scientific, not relying on subjective assumptions or one-sided impressions, but using appropriate analytical tools and techniques, such as SWOT analysis, Porter's five-force model, value chain analysis, core competitiveness analysis, etc., to carry out systematic, objective and logical analysis.

The results of the analysis should be useful, not just at the level of description and comparison, but to distill the strengths and weaknesses of competitors, opportunities and threats, strengths and weaknesses, as well as the impact and enlightenment on the enterprise, to provide the basis and suggestions for the strategic decision-making of the enterprise.

3. how to use competitor information

The ultimate purpose of collecting and analyzing competitors' information is to use competitors' information, formulate effective competitive strategies, enhance their competitiveness, and achieve the development goals of the enterprise. The use of competitor information should pay attention to the following points:

The principle of application should be reasonable, do not blindly imitate or attack competitors, but according to their own advantages and disadvantages, choose appropriate competitive strategies, such as differentiation, focus, cost leadership, alliance, etc., in order to achieve effective differentiation and complementary advantages with competitors.

The way of application should be flexible, do not stick to one or several competitive strategies, but according to the changes in the market and the dynamics of competitors, timely adjustment and optimization of competitive strategies to cope with different competitive situations and challenges.

The effect of application should be evaluated, not only focusing on the implementation process of competitive strategy, but regularly checking and evaluating the implementation effect of competitive strategy, such as market share, customer satisfaction, brand awareness, profit margin, etc., as well as the relative advantages and disadvantages with competitors, so as to find and improve the deficiencies and problems of competitive strategy in time.

Shangpu Consulting is a company specializing in market research, investment consulting, IPO consulting and other services. Its customers include small and medium-sized enterprises in various industries, as well as some government agencies and social organizations. The company followed the above principles and methods when conducting competitor research, and made some valuable discoveries and gains, such:

The company found that among its direct competitors, there is a company called Huaxia Consulting, whose scale, region, market share and growth rate are comparable to those of Shangpu Consulting, and the content and quality of services provided are also similar. it is the biggest competitor of Shangpu Consulting. By collecting and analyzing the information of Huaxia Consulting, the company found that the core of its competitive strategy is specialization, that is, by providing professional, customized and high-quality consulting services to attract and retain customers and establish a good brand image and reputation. In response to this competitive strategy, Shangpu Consulting has formulated a differentiated competitive strategy, that is, by providing diversified, flexible and efficient consulting services to meet the different needs of different customers, provide more choices and convenience, and create Own competitive advantage and characteristics.

The company found that among its indirect competitors, there is a company called Financial Star, whose scale, region, market share and growth rate are far higher than that of Shangpu Consulting, and the service content and quality provided are also higher, which is the biggest threat to Shangpu Consulting. By collecting and analyzing the information of Financial Star, the company found that the core of its competitive strategy is comprehensiveness, that is, by providing all-round, one-stop, high-end consulting services to cover customers in all fields and levels, and establish a strong market position and influence. In response to this competitive strategy, Shangpu Consulting has formulated a focused competitive strategy, that is, by focusing on the consulting services that they are good at, in demand, and profitable, to concentrate resources and energy to improve their professional level and service quality. Build your own core competitiveness and value.

By using the information of competitors, Shangpu Consulting has successfully improved its competitiveness, won more customers and markets, and achieved steady development and growth.

Conclusion

Competitor research is an important market research activity, which can help enterprises understand the competitive environment, formulate effective competitive strategies and enhance their competitiveness. Competitor research should avoid some common misunderstandings and traps, pay attention to some principles and methods, from three aspects: how to define competitors, how to collect and analyze competitor information, and how to use competitor information. Taking Shangpu Consulting Company as an example, this paper introduces the methods and experience of the company in conducting competitor research, as well as what misunderstandings and traps it avoids, and provides some reference and enlightenment for enterprises and individuals engaged in competitor research.