Four pitfalls of competitor research

Competitor research refers to the process of collecting, collating, analyzing and evaluating competitors' relevant information to understand competitors' strategic objectives, core competencies, market performance, strengths and weaknesses, etc., so as to provide reference and basis for enterprises to formulate strategies and marketing decisions. Competitor research is an important part of corporate strategic management and one of the important services that consulting firms provide to their clients.

However, many companies will fall into some common misunderstandings when conducting competitor research, which will lead to the distortion or invalidity of the research results, and even cause wrong decisions and adverse consequences. As a professional consulting firm, in the process of providing customers with competitor research services, Shangpu Consulting has found four major pitfalls in competitor research, namely:

The question itself.

The Misdirection of Quantitative Data

Bias in Questionnaire Understanding

The Dilemma of Reversal of Responsibility

Below, we will analyze these four traps and propose corresponding solutions to help companies better analyze their competitors and enhance their competitiveness.

1. questions themselves.

The question of the question itself means that when designing the research questionnaire or putting forward the research question, the rationality, validity and objectivity of the question are not fully considered, which leads to the subjectivity, ambiguity and guidance of the question, thus affecting the understanding and answer of the researcher, resulting in the deviation and distortion of the research results.

Therefore, to avoid asking the question itself, we need to pay attention to the following points:

Questions should be in line with the purpose of the research and avoid irrelevant or meaningless questions.

Questions should be clear and unambiguous to avoid vague or ambiguous questions

Questions should be objective and neutral, avoiding subjective or leading questions

Issues should be appropriately open to avoid being too closed or too broad

Questions should be logically ordered to avoid random or confusing questions

When providing competitor research services to customers, Shangpu Consulting will design reasonable and effective research questionnaires or questions according to customers' needs and objectives. At the same time, it will combine observation, interview, experiment and other methods to deeply understand the situation of competitors from multiple angles and levels. For example, when conducting a competitor survey for an electronic product manufacturer, Shangpu Consulting not only investigated consumers' cognition, attitude and behavior towards competitors' products through questionnaires, but also visited competitors' sales outlets on the spot to observe competitors' product display, promotion activities and service quality, and experienced competitors' product functions, performance and user feelings through mysterious customers, in order to get a more comprehensive, more in-depth, more real competitor information.

2. the misleading quantitative data

The misleading of quantitative data means that when collecting and analyzing the quantitative data of competitors, the source, quality and background of the data are not fully considered, which leads to the one-sidedness, limitation and failure of the data, thus affecting the correct judgment and evaluation of competitors, resulting in biased and invalid research results.

For example, when analyzing the market share of competitors, some companies rely too much on public or third-party data, believing that these data are objective, authoritative and reliable. However, there are often some problems with these data, such as the definition, scope, method, time and source of the data may be inconsistent, there may be errors in the collection, collation, analysis and release of the data, there may be bias in the interpretation, utilization and dissemination of the data, there may be lag in the changes, trends and impacts of the data, and so on. These problems will affect the authenticity, accuracy and validity of the data. If you blindly believe or use these data incorrectly, you will have a wrong understanding and judgment of the strength and trend of competitors.

Therefore, to avoid misleading quantitative data, the following points need to be noted:

Data should be clearly defined to avoid vague or ambiguous data

Data from reliable sources to avoid uncertain or untrustworthy data

Data should have reasonable methods to avoid unscientific or non-standard data

Data should have valid time to avoid outdated or non-updated data

Data should have a complete background, avoid isolated or detached data

When providing competitor research services to customers, Shangpu Consulting will collect, analyze and process quantitative data from multiple channels and platforms according to customers' needs and goals, and combine qualitative views and insights from multiple dimensions and perspectives, comprehensive, accurate and effective analysis and evaluation of competitors' market share, sales, profit margin, cost structure, customer satisfaction, brand awareness and other indicators. For example, when conducting a competitor survey for an automobile manufacturer, Champ Consulting not only collected and analyzed publicly available or third-party data such as competitors' financial statements, market reports, and industry data, but also surveyed and interviewed stakeholders such as competitors' suppliers, dealers, partners, and customers, as well as purchased and test-drove competitors' cars, this results in a more realistic, comprehensive and valuable competitor data.

Bias in 3. Questionnaire Understanding

The deviation of questionnaire understanding refers to that when designing and using the questionnaire, the background, characteristics and psychology of the investigated person are not fully considered, resulting in the content, form and method of the questionnaire not suitable for the actual situation of the investigated person, thus affecting the understanding and answer of the investigated person, resulting in the distortion and invalidity of the research results.

For example, some companies use standardized or generic questionnaires when investigating the customer satisfaction of their competitors, believing that this ensures the scientificity and comparability of the questionnaires. However, such questionnaires often have some problems. For example, the language, terms, concepts, scales and options of the questionnaires may not conform to the level, habits, culture and preferences of the respondents. The length, complexity, difficulty and sensitivity of the questionnaires may exceed the tolerance, patience, ability and willingness of the respondents, the distribution, filling, collection and feedback of questionnaires may not be suitable for the time, place, mode and needs of the respondents, etc. These questions will lead to deviations, errors or deficiencies in the understanding and answers of the respondents. If they are not corrected or supplemented, they will produce wrong assessments and judgments on the customer satisfaction of competitors.

Therefore, to avoid the deviation of questionnaire understanding, we need to pay attention to the following points:

Questionnaires should be tailored to the level of the respondents and avoid too high or too low questionnaires.

Questionnaires should conform to the habits of the respondents and avoid unfamiliar or unsuitable questionnaires.

Questionnaires should take into account the culture of the respondents and avoid questionnaires that are not respected or understood.

Questionnaires should meet the preferences of the respondents and avoid questionnaires that are not liked or satisfied.

The questionnaire should be adapted to the situation of the investigated person and avoid inconvenient or inappropriate questionnaires.

When providing competitor research services to customers, Shangpu Consulting will design and use a research questionnaire suitable for the investigated person according to the background, characteristics and psychology of the investigated person, and at the same time combine other research methods, such as interviews, observations, experiments, etc., to obtain the true and effective information of the investigated person from multiple channels and angles. For example, when conducting a competitor survey for a restaurant chain enterprise, Shangpu Consulting not only designed and used different questionnaires for different age, gender, income, education, occupation and other groups, but also conducted different interviews, observations and experiments at different times, places, occasions and ways, this results in competitor information that is closer to and reflects the needs, feelings and behaviors of the respondents.

The Dilemma of Reversal of 4. Responsibility

The dilemma of reversal of responsibility refers to the failure to fully consider the purpose, significance and value of the research when conducting and using competitor research, resulting in unclear responsibilities, rights and obligations of the research, thus affecting the implementation and application of the research and causing waste and uselessness of the research results.

For example, when some enterprises entrust consulting companies to conduct competitor research, they will think that this is the responsibility and obligation of the consulting company, and they are only the recipients and users of the research. Therefore, they do not need to participate in or cooperate with the research process, nor do they need to pay attention to or evaluate the results of the research, but only need to wait for or accept the report or suggestion of the consulting company. However, such an attitude often leads to some problems. For example, the needs, objectives, expectations and standards of the enterprise may not be clear or clear, resulting in the research plan, method, content and scope of the consulting company may not be suitable or meet the actual situation of the enterprise, and the information, resources, support and feedback of the enterprise may be insufficient or not timely, as a result, the research process, efficiency, quality and effectiveness of the consulting firm may be affected, and the understanding, recognition, adoption and implementation of the enterprise may not be in place or consistent, resulting in the research results, suggestions, value and significance of the consulting firm may be ignored or wasted, and so on. These problems will lead to the responsibility and rights of research being reversed, the significance and value of research being weakened, and the purpose and effect of research being lost.

Therefore, to avoid the dilemma of reversal of responsibilities, the following points need to be paid attention:

The purpose of research should be clear, avoid aimless or meaningless research.

Research to clear needs, avoid unclear or unclear research

Research should be conducted in cooperation and cooperation to avoid non-participation or unsupported research.

Research should focus on evaluation and avoid research that does not care or feedback.

Research should be applied and implemented to avoid non-adoption or non-implementation of research.

When providing competitor research services for customers, Shangpu Consulting will establish good communication and cooperation with customers according to the purpose, significance and value of the research, clarify the responsibilities, rights and obligations of the research, and combine the needs, objectives, expectations and standards of customers to provide research plans, methods, contents and scope suitable for customers, as well as high-quality research process, efficiency, quality and effect, and valuable research results, suggestions, value and significance, as well as effective research application, implementation, monitoring and improvement, so as to maximize the benefits of research. For example, when conducting a competitor survey for a clothing brand, Shangpu Consulting not only clarified the purpose, demand, expectation and standard of the survey through full communication and consultation with customers, but also provided customers with detailed survey plans, methods, contents and scope, as well as efficient survey process, quality, effect and feedback, as well as useful survey results, suggestions, value and significance, as well as effective research application, execution, monitoring and improvement, thus helping customers to increase competitiveness and market share.

In short, competitor research is an important basis for enterprises to make strategic and marketing decisions, but there are also some common misunderstandings and traps that need to be paid attention to and avoided by enterprises and consulting companies to improve the quality and effectiveness of research. As a professional consulting company, Shangpu Consulting has rich experience and ability in competitor research, and can provide customers with comprehensive, in-depth, accurate and effective competitor information and suggestions to help customers better analyze competitors and enhance competitiveness.