Purpose of Competitor Analysis

The purpose of competitor analysis is to understand the position and competitiveness of the enterprise in the market, as well as the strategy and behavior of competitors, so as to formulate the competitive strategy suitable for itself. Competitor analysis can help companies achieve the following goals:

Identify and assess the type, number, size, strength, strengths and weaknesses of competitors;

Analyze the characteristics and trends of competitors' products and services, price and promotion, channel and distribution, brand and image, technology and innovation, finance and quality;

Understand the logic and patterns of competitors' goals and motivations, strategies and tactics, opportunities and threats, priorities and preferences, reactions and changes;

Compare and contrast the differences and similarities between itself and its competitors, and find out its own strengths and weaknesses, as well as the weaknesses and opportunities of competitors;

Develop and execute competitive strategies against competitors, including offensive and defensive, cooperation and competition, leading and following, differentiation and standardization, etc., to increase market share and profitability, enhance customer satisfaction and loyalty, and build and maintain brand reputation and influence.

Methods of competitor analysis

The main methods of competitor analysis include the following:

Michael Porter's Competitive Strategy Framework: The framework divides competition into five forces: industrial competitors, buyers, suppliers, potential entrants and substitutes, analyzes their impact and threats to enterprises, and how enterprises respond to and use them;

SWOT analysis: The analysis divides the internal and external factors of the enterprise and competitors into four aspects: advantage (S), disadvantage (W), opportunity (O) and threat (T), and analyzes their influence and effect on the enterprise, and how the enterprise can use the advantages and opportunities to overcome the disadvantages and threats;

4P analysis: this analysis divides the marketing mix of enterprises and competitors into four aspects: product (P), price (P), channel (P) and promotion (P), and analyzes their characteristics and differences, as well as their impact and attractiveness on the market and customers;

Other analytical methods: Depending on the industry and market characteristics, other analytical methods can also be used, such as Boston Matrix, value chain analysis, core competitiveness analysis, strategic group analysis, market structure analysis, etc.

Steps for competitor analysis

The steps of competitor analysis include the following:

Identify competitors: identify your direct and indirect competitors, as well as potential competitors and substitutes, based on criteria such as market definition, product range, customer group, geographic region, etc;

Collect competitor information: collect relevant information about competitors through various channels and methods, including public information and non-public information, quantitative information and qualitative information, historical information and current information, first-hand information and second-hand information, etc;

Analysis of competitor information: according to the purpose and method of competitor analysis, collate and analyze the collected competitor information, use various tools and technologies, reveal the characteristics and laws of competitors, evaluate the advantages and disadvantages and opportunities and threats of competitors, and compare the differences and similarities of competitors;

Develop competitor strategies: based on the results of competitor analysis, develop competitive strategies for competitors, including competitive objectives, competitive methods, competitive resources, competitive measures, etc., in order to achieve their competitive advantages and market goals;

Implement and evaluate competitor strategies: implement corresponding competitive actions according to competitor strategies, monitor and evaluate the effectiveness and impact of competitor strategies, and adjust and optimize competitor strategies in a timely manner according to changes in the market and competitors.

Tools for competitor analysis

The tools for competitor analysis include the following:

Website analysis tools: through website analysis tools, such as Ahrefs, analyze competitors' website data, such as traffic,Keywords, ranking, backlinks, advertising, content, etc., to obtain competitors' website optimization, SEO strategies, content marketing, etc;

Social media analysis tools: through social media analysis tools, such as BuzzSumo, analyze competitors' social media activities, such as publishing frequency, content type, topic, influence, interaction, emotion, etc., to obtain competitors' social media strategies, customer relationships, brand image, etc;

Financial analysis tools: through financial analysis tools, such as Yahoo Finance, analyze competitors' financial data, such as revenue, profit, cost, assets, liabilities, cash flow, etc., to obtain competitors' financial position, profitability, growth potential, etc;

Other analytical tools: Depending on your needs and goals, you can also use other analytical tools, such as customer satisfaction surveys, mystery customers, industry reports, expert interviews, focus groups, and more.

Competitor Analysis of Champ Consulting

Shangpu Consulting is a consulting company specializing in market research, investment and financing consulting and IPO listing consulting. Founded in 2018, it is headquartered in Beijing and has about 200 employees. Its customers include Baidu, Alibaba, Tencent, Jingdong, Meituan, Didi and other well-known enterprises. The main competitors of Champ Consulting are the following:

McKinsey Consulting: McKinsey Consulting is one of the world's largest management consulting companies. Founded in 1926, it is headquartered in the United States and has about 30000 employees. The clients it has served include 90% of the world's top 500 companies. McKinsey Consulting has rich experience and excellent cases in the fields of market research, investment and financing consulting and IPO listing consulting, and is one of the strongest competitors of Shangpu Consulting;

Deloitte Consulting: Deloitte Consulting is one of the world's largest professional services companies. Founded in 1845 and headquartered in the United Kingdom, it has approximately 330000 employees and has served 75% of the world's top 500 companies. Deloitte Consulting has a leading position and professional team in the fields of investment and financing consulting and IPO listing consulting, and is one of the important competitors of Shangpu Consulting;

iResearch Consulting: iResearch Consulting is one of the largest market research and consulting companies in China. It was established in 2000 and is headquartered in Shanghai. It has about 1000 employees. The customers it has served include Huawei, Xiaomi, Pinduoduo, Kuaishou, Byte Beat and other well-known companies. iResearch Consulting has deep accumulation and extensive coverage in the field of market research, and is one of the main competitors of Shangpu Consulting.

Based on the above competitor analysis, we can draw the following feedback and suggestions for improvement:

Shangpu Consulting has strong professional capabilities and customer resources in the fields of market research, investment and financing consulting and IPO listing consulting, but it also faces fierce competitive pressure and challenges from market changes;

Shangpu Consulting needs to continuously improve the process and content of competitor analysis, strengthen the monitoring and early warning of competitors, look for competitive advantages of differentiation and innovation, and adjust and optimize its own strategy and execution;

Champ Consulting can learn from the strengths and experiences of its competitors, such as McKinsey's global vision and strategic thinking, Deloitte's financial expertise and execution, and iResearch's market insights and data analysis;

Champ Consulting can also discover and exploit the shortcomings and opportunities of competitors, such as the high cost and arrogant attitude of McKinsey Consulting, the conservative style and lack of innovation of Deloitte Consulting, the limited scope and single service of iResearch Consulting, etc;

Shangpu Consulting can also explore and develop new markets and customers, such as small and medium-sized enterprises, emerging industries, overseas markets, etc., to provide more diversified products and services to meet different needs and expectations.