The Importance of Competitor Research

In today's market environment, competition is everywhere, whether it is products or services, are facing from different angles and levels of competitive pressure. In order to stand out in the fierce competition, enterprises need to constantly innovate and improve, improve their core competitiveness, to meet customer needs and expectations. To do this, we need to have a clear and comprehensive understanding of their competitors, including their strengths, weaknesses, strategies, objectives, market share, customer satisfaction and other information, so as to find out their own differentiation advantages, formulate effective competitive strategies, increase their market share and profit margin.

The importance of competitor research can be reflected in the following aspects:

Competitor research can help companies understand the current situation and trends of the market, as well as their position and role in the market, so that they can develop products or services that meet market needs and changes, and improve their market adaptability and competitiveness.

Competitor research can help companies find their own strengths and weaknesses, as well as the strengths and weaknesses of competitors, so that they can make full use of their own advantages, make up for their own disadvantages, and at the same time respond to and challenge the advantages of competitors. Attack and use to achieve your competitive advantage.

Competitor research can help companies understand competitors' strategies and objectives, as well as their actions and reactions, so as to predict and prevent competitors' actions, formulate appropriate response strategies, and avoid being affected or damaged by competitors' actions. At the same time, find and create competitors' weaknesses and loopholes, carry out effective attacks and utilization, and achieve their strategic goals.

Competitor research can help companies understand competitors' customer groups and satisfaction, as well as their needs and expectations, so as to improve their customer relationship management, increase their customer loyalty and satisfaction, and attract and tap competitors' customers. Expand your customer base and market share, and achieve your marketing goals.

Methodology for competitor research

The methods of competitor research can be divided into two main categories: active research and passive research.

Active research refers to the active collection and analysis of competitor information, both direct and indirect. Direct means that an enterprise obtains information directly from competitors or their related parties, such as through interviews, questionnaires, observations, trial purchases, etc. Indirect means that enterprises obtain information through third parties or public channels, such as through industry associations, media, networks, professional institutions, government departments, etc.

Passive research refers to the analysis of information actively provided by competitors, such as through competitors' advertisements, promotions, products, services, prices, promotions, financial reports, annual reports, websites, social media, etc.

Whether it is active research or passive research, we need to follow the following principles:

Legitimacy: The information collection and analysis of competitor research must comply with the requirements of laws and regulations, and must not infringe upon the legitimate rights and interests of competitors, use improper means and methods, and damage the reputation and interests of competitors.

Systematic: The information collection and analysis of competitor research must have a complete and scientific system, not random and scattered, with clear purposes and scope, reasonable methods and steps, effective tools and technologies, and strict quality and standards.

Practicability: The information collection and analysis of competitor research must have practical value and significance, cannot be separated from reality and the market, must conform to the company's strategy and goals, must be able to provide useful reference and guidance for the company's decision-making and actions, and must be able to Bring favorable effects and results to the competition and development of enterprises.

Steps for competitor research

The steps of competitor research can be divided into the following stages:

Determine competitors: The determination of competitors needs to be screened and classified from different angles and levels according to the characteristics of the company's products or services and the market conditions, such as the similarity, substitution, functionality, quality and price of the products or services, or the scale, share, growth rate, region and channel of the market, in order to identify the most competitive threats and influence of competitors, as well as their basic information and characteristics.

Information collection: the collection of information needs to be based on the determination of competitors, as well as the purpose and scope of the enterprise's research, select the appropriate methods and channels to obtain the relevant information of competitors, such as their strengths, weaknesses, strategies, objectives, market share, customer satisfaction and other information, but also to collect their own relevant information for comparison and analysis.

Analyzing information: the analysis of information needs to make in-depth and detailed comparison and evaluation according to the information of competitors and their own information, using appropriate tools and technologies, such as SWOT analysis, Porter's five forces analysis, value chain analysis, etc., to analyze the advantages, disadvantages, opportunities, threats, competitiveness, value creation and other aspects of competitors from different angles and levels, at the same time, it also analyzes its own corresponding aspects, so as to find out the differences and relationships between itself and competitors, as well as its own direction and space for optimization and improvement.

Feedback information: the feedback of information needs to make clear and convincing reports or presentations according to the analysis results of competitors and their own goals and needs, and give feedback and communication to relevant decision makers or stakeholders, such as using charts, data, cases and other methods to show the current situation and trends of competitors, as well as their own advantages and disadvantages, and put forward their own suggestions and plans, in order to cope with and take advantage of the situation of competitors, to achieve their competitive advantage and strategic objectives.

Evaluation information: the evaluation of information needs to carry out regular and irregular inspection and evaluation according to the feedback results of competitors, as well as their actual effects and influences, such as using indicators, standards, questionnaires, interviews and other methods to evaluate the changes and reactions of competitors, as well as their own implementation and achievements, and at the same time make summary and reflection to find out their own advantages and disadvantages, as well as the opportunities and threats of competitors, in order to adjust and improve, improve the quality and effect of their competitors research.

Considerations for Competitor Research

Competitor research is a complex and ongoing activity that requires attention to the following areas:

Competitor research information should be kept up to date and accurate, not outdated and wrong, to track and monitor the dynamics and changes of competitors in a timely manner, but also to update and revise their own information and analysis to maintain the effectiveness and practicality of competitor research.

Competitor research information should be kept reasonable and sufficient, not too much or too little, according to their own purpose and scope, select and collect necessary and important information, but also to avoid and exclude irrelevant and useless information, in order to maintain the systematic and practical nature of competitor research.

Competitor research information should be objective and fair, not subjective and biased, based on facts and data, rational and scientific analysis and evaluation, but also to respect and understand the position and behavior of competitors, in order to maintain the legitimacy and credibility of competitor research.

The Case for Competitor Research Services at Champu Consulting

Shangpu Consulting is a professional market research and consulting company with rich industry experience and expertise to provide customized solutions for customers in various industries. Among them, competitor research service is a core business of Shangpu Consulting Company, which aims to help customers understand and deal with competitors in the market and enhance their competitiveness and market position.

The following is an example of a competitor research service provided by Champ Consulting for an automobile manufacturer:

Customer background: The automaker is a century-old American brand that mainly produces high-end cars and SUVs, and is known for its high quality, high performance, high safety and high brand image. In recent years, the automaker has faced strong challenges from competitors in Europe and Japan, and its market share and profit margin have declined. At the same time, it has also been impacted by new energy vehicles and smart cars. Innovation and improvement of products and services are needed to adapt to market changes and needs.

Service purpose: the automobile manufacturer hopes to understand the situation of its main competitors, including their products, services, prices, promotions, finance, strategies, objectives, market shares, customer satisfaction and other information through the competitor research service of Shangpu Consulting Company, so as to formulate effective competition strategies, improve their market share and profit margin, and at the same time, they can also innovate and improve their products and services, to meet customer needs and expectations.

Service process: According to the customer's needs and background, Champ Consulting has identified its main competitors as the following car manufacturers: Mercedes-Benz, BMW, Audi, Lexus, and Tesla. Then, Shangpu Consulting Company used active research and passive research methods to collect relevant information about these competitors, including their products, services, prices, promotions, finances, strategies, goals, market share, customer satisfaction, etc. At the same time, it also collected its own relevant information for comparison and analysis. Then, using tools and techniques such as SWOT analysis, Porter's five-force analysis and value chain analysis, Shangpu Consulting Company conducted in-depth and detailed comparison and evaluation of the collected information. From different angles and levels, it analyzed the advantages, disadvantages, opportunities, threats, competitiveness, value creation and other aspects of competitors, as well as its own corresponding aspects, in order to find out the differences and relationships between themselves and competitors, as well as their own optimization and improvement of the direction and space. Finally, Champ Consulting produced a clear and convincing report, gave feedback and communication to customers, showed the current situation and trends of competitors, as well as their own advantages and disadvantages, and put forward their own suggestions and plans to deal with and use the situation of competitors to achieve their own competitive advantages and strategic goals.

Service results: The customer is very satisfied with the competitor research service of Shangpu Consulting Company, and believes that the service of Shangpu Consulting Company is professional, efficient, suitable and valuable, and provides customers with comprehensive and in-depth competitor information and analysis, as well as Practical and innovative competitive strategies and solutions. According to the suggestions and plans of Shangpu Consulting Company, customers have optimized and improved their products and services, such as increasing the R & D and investment of new energy vehicles and intelligent vehicles, improving the quality and performance of products, reducing the cost and price of products, increasing the diversity and differentiation of products, improving the level and efficiency of services, and increasing the added value and personalization of services, so as to improve their market share and profit margins, but also improve their customer loyalty and satisfaction, to achieve their competitive advantage and strategic objectives.