1. identify the scope and type of competitors

Competitors are defined as other businesses in the same market or industry that compete with the business for the same or similar customers and resources. The range and type of competitors depends on the business scope, target market, customer group and other factors. In general, competitors can be divided into the following types:

Direct competitors: Companies that provide the same or similar products or services, meet the same or similar customer needs, and have the same or similar market positioning and objectives. For example, Champ Consulting's direct competitors include Analysys Consulting, Huasheng Consulting, and CIIC Consulting.

Indirect competitor: An enterprise that provides different but related products or services, meets some of the same or similar customer needs, and has some of the same or similar market positioning and objectives. For example, Champ Consulting's indirect competitors include Deloitte, PricewaterhouseCoopers, McKinsey and others.

Potential competitor: refers to enterprises that have not yet entered but are likely to enter the same market or industry, provide the same or similar products or services, meet the same or similar customer needs, and have the same or similar market positioning and objectives. For example, potential competitors of Shangpu Consulting Company include Alibaba, Tencent and Baidu.

Alternative competitor: An enterprise that provides different and unrelated products or services, but can meet the same or similar customer needs, with different or opposite market positioning and objectives. For example, alternative competitors to Champ Consulting are self-employed, self-taught, and self-improvement.

The purpose of determining the scope and type of competitors is to clarify the object and scope of competitor research and to avoid ignoring important competitors or wasting time and resources on unrelated competitors. In general, direct and indirect competitors are the focus of competitor research, while potential and alternative competitors are complementary to competitor research.

2. setting the purpose and questions of competitor research

The purpose of competitor research is to understand the situation of competitors, so as to provide a basis and reference for enterprises to formulate their own strategies and marketing strategies. The purpose of competitor research should be clear, specific, quantifiable and achievable, such:

Understand competitors' market share, growth rate, profitability, etc;

Analyze competitors' strategies, capabilities, strengths, weaknesses, trends and expectations;

Assess the impact, threats and opportunities of competitors on the enterprise;

Look for weaknesses, loopholes and defects of competitors;

Compare the differences, similarities and imitations of competitors;

Predict the behavior, changes and trends of competitors;

Form the portrait, evaluation and ranking of competitors.

Competitor research questions are questions that need to be answered in order to achieve the purpose of competitor research, as well as the specific content and direction of competitor research. Competitor research questions should be targeted, meaningful, valuable, and answered, such:

What are the characteristics and advantages of a competitor's product or service?

What are the competitors' pricing strategies and how do they affect customers' buying decisions?

What is the competitor's channel strategy and how does it affect customer acquisition and usage?

What are competitors' promotion strategies and how do they affect customers' perceptions and preferences?

What is the competitor's brand strategy and how does it affect customer trust and loyalty?

What are competitors' innovation strategies and how do they affect customer needs and expectations?

What are the partnering strategies of competitors and how do they affect customer relationships and engagement?

The purpose of setting the purpose and questions of the competitor research is to clarify the focus and direction of the competitor research and to avoid deviating from the subject or missing key information. Generally speaking, the purpose and questions of competitor research should be customized and adapted to different customer needs and scenarios according to the business characteristics and competitive environment of the enterprise.

3. selection of appropriate information sources and collection methods

The sources of information for competitor research are the channels and media that provide information about competitors, including public, semi-public, and non-public. The information collection method of competitor research refers to the technology and means to obtain information about competitors, including active, passive, direct and indirect. The purpose of selecting appropriate information sources and collection methods is to ensure the adequacy, accuracy, timeliness and validity of the information surveyed by competitors. In general, the sources of information and collection methods for competitor research can be divided into the following:

Public information sources and collection methods: refers to the information publicly released or disclosed by competitors, as well as information obtained through public channels or media, such as competitors' official websites, annual reports, press releases, advertisements, recruitment, exhibitions, forums, social media, etc. The advantages of disclosing information sources and collection methods are large amount of information, easy access and low cost, while the disadvantages are the uneven quality of information, untimely updating and lack of depth.

Semi-public sources and collection methods: refers to the partial public or limited disclosure of information by competitors, as well as information obtained through semi-public channels or media, such as competitors' customers, suppliers, partners, distributors, agents, employees, Former employees, industry associations, industry media, industry reports, patents, trademarks, copyrights, etc. The advantages of semi-public information sources and collection methods are high quality, timely update and depth, while the disadvantages are small amount of information, difficult to obtain and high cost.

Non-public sources and collection methods: refers to information that competitors do not disclose or keep confidential, as well as information obtained through non-public channels or media, such as competitors' internal documents, data, strategies, plans, budgets, costs, profits, risks, issues, opportunities, etc. The advantages of non-public information sources and collection methods are that the information is valuable, unique and competitive, while the disadvantages are that it is extremely difficult to obtain information, there are legal and moral risks, and a high degree of professional and technical competence is required.

The principle of selecting appropriate information sources and collection methods is to comprehensively consider the availability, credibility, availability and comparability of information according to the purpose and problems of competitor research, as well as the types and characteristics of competitors, and adopt multiple information sources and collection methods to carry out cross-verification and comprehensive analysis of information to improve the validity and reliability of information.

4. use of effective data analysis tools and models

Data analysis tools and models for competitor research are techniques and methods that can organize, process, analyze, interpret, and present information about competitors, including qualitative, quantitative, descriptive, inferential, and predictive. The purpose of using effective data analysis tools and models is to extract key information, hidden information, regular information and value information about competitors, so as to provide enterprises with insightful and suggestive competitor analysis reports. In general, the data analysis tools and models of competitor research can be divided into the following:

SWOT Analysis: A tool and model that analyzes the strengths (Strengths), weaknesses (Weaknesses), opportunities (Opportunities) and threats (Threats) of competitors in order to assess their overall strength and competitive posture. The advantages of SWOT analysis are that it is easy to use, comprehensive and objective, and widely applicable, while the disadvantages are that it is too static, lacks quantification, and is subjective.

Five Forces Analysis: A tool and model that analyzes the degree of competition and profitability of a competitor's industry in order to assess the competitive advantages and strategic choices of competitors. The five forces analyzed by the five forces are competitors in the industry, potential new entrants, substitutes or services, the bargaining power of suppliers and the bargaining power of buyers. The advantages of five forces analysis are systematic depth, clear structure and logical rigor, while the disadvantages are too theoretical, ignoring changes and the existence of assumptions.

PEST analysis: A tool and model that analyzes the impact and trends of the external environment in which competitors operate to assess the opportunities and threats of competitors. The four factors analyzed by PEST are political (Political), economic (Economic), social (Social) and technological (Technological). The advantages of PEST analysis are extensive and comprehensive, flexible and forward-looking, while the disadvantages are excessive information, complex analysis and uncertainty.

Four-quadrant analysis: refers to tools and models that analyze the market share and market growth rate of competitors in order to assess their market position and development potential. The four quadrants of the four-quadrant analysis are Star, Question Mark, Cash Cow, and Dog. The advantage of four-quadrant analysis is that it is intuitive and concise, easy to compare, and helpful for decision-making, while the disadvantage is that it ignores other factors, has errors, and is too subjective.

The principle of using effective data analysis tools and models is to integrate and compare data based on the purpose and problems of competitor research, as well as the types and characteristics of competitors, using a variety of data analysis tools and models to improve the explanatory power and persuasiveness of the data.

5. focus on competitors' strengths and weaknesses

Competitor advantage refers to the superiority, leadership or uniqueness of competitors relative to enterprises or other competitors in certain aspects, such as competitor's product quality, service level, technological innovation, brand influence, customer loyalty, cost control, profitability, etc. Competitor disadvantage refers to the disadvantage, backwardness or defects of competitors relative to the enterprise or other competitors in some aspects, such as the competitor's single product, inefficient service, backward technology, fuzzy brand, customer loss, high cost, low profitability, etc. The purpose of focusing on the strengths and weaknesses of competitors is to understand the core competitiveness and competitive weaknesses of competitors, so as to provide reference and guidance for enterprises to formulate their own competitive strategies and marketing strategies. In general, there are several ways to focus on the strengths and weaknesses of competitors:

Strengths-weaknesses analysis: refers to the method of listing the strengths and weaknesses of competitors separately to form a matrix of the strengths and weaknesses of competitors for comparison and analysis. The advantages of advantage-disadvantage analysis are intuitive, easy to summarize, and helpful to discover, while the disadvantages are too simple, lack of depth, and subjectivity.

Strengths-weaknesses transformation: A method of analyzing how a competitor's strengths are transformed into weaknesses, or how a competitor's weaknesses are transformed into strengths, so as to form a table of competitors' strengths and weaknesses transformation for ease of development and implementation. The advantage of advantage-disadvantage transformation is that it is creative, helpful to break through, and helpful to deal with. The disadvantage is that it is difficult, requires conditions, and has risks.

Strengths-weaknesses matching: refers to the method of analyzing how the strengths of competitors match the weaknesses of the enterprise, or how the weaknesses of competitors match the strengths of the enterprise, so as to form a matching table of the strengths and weaknesses of competitors for easy learning and reference. The advantages of advantage-disadvantage matching are targeted, enlightening and reference, while the disadvantages are the need for information, analysis and judgment.

The principle of focusing on the strengths and weaknesses of competitors is to identify and evaluate strengths and weaknesses using a combination of methods based on the purpose and questions of competitor research, as well as the types and characteristics of competitors, in order to improve the effectiveness and practicality of competitor analysis.

6. compare differences and similarities among competitors

Competitor differences refer to the differences, uniqueness or particularity of competitors relative to enterprises or other competitors in certain aspects, such as competitors' product functions, service content, technology applications, brand image, customer groups, market positioning, strategic objectives, etc. Competitor similarity refers to the competitor relative to the enterprise or other competitors in some aspects of the same, similar or common, such as the competitor's product type, service range, technology source, brand attributes, customer demand, market size, strategic direction, etc. The purpose of comparing the differences and similarities of competitors is to understand the degree of differentiation and homogenization of competitors, so as to provide reference and guidance for enterprises to formulate their own differentiation and homogenization strategies. Generally speaking, there are several ways to compare the differences and similarities of competitors:

Difference-similarity analysis: refers to the method of listing the differences and similarities of competitors separately to form a difference-similarity matrix of competitors for comparison and analysis. Difference-similarity analysis has the advantage of being easy to use, comprehensive and objective, and widely applicable, while the disadvantage is that it is too static, lacks quantification, and is subjective.

Difference-similarity transformation: refers to the method of analyzing how the differences of competitors are transformed into similarities, or how the similarities of competitors are transformed into differences, so as to form the difference-similarity transformation table of competitors, so as to facilitate the formulation and implementation. The advantage of difference-similarity transformation is that it is creative, helpful to break through and helpful to deal with. The disadvantage is that it is difficult, requires conditions and has risks.

Difference-similarity matching: refers to the method of analyzing how the differences of competitors match the similarities of enterprises, or how the similarities of competitors match the differences of enterprises, so as to form the difference-similarity matching table of competitors, so as to facilitate learning and reference. The advantage of difference-similarity matching is that it is targeted, enlightening and reference, while the disadvantage is that it requires information, analysis and judgment.

The principle of comparing differences and similarities between competitors is to identify and evaluate differences and similarities using a combination of methods based on the purpose and questions of competitor research, as well as the types and characteristics of competitors, in order to improve the effectiveness and usefulness of competitor analysis.

7. predict competitor movements and trends

Competitor movements refer to what competitors have done or are doing in the past or present, such as competitor product development, service improvement, technology update, brand promotion, customer expansion, market entry, strategic adjustment, etc. Competitor trends refer to what competitors may do or intend to do in the future, such as product innovation, service expansion, technological breakthroughs, rebranding, customer maintenance, market exit, strategic shifts, etc. The purpose of predicting the movements and trends of competitors is to understand the behavior patterns and development direction of competitors, so as to provide reference and guidance for enterprises to formulate their own coping strategies and preventive measures. In general, there are several ways to predict the movements and trends of competitors:

Trend-trend analysis: refers to the method of listing the trends and trends of competitors separately to form a trend-trend matrix of competitors for comparison and analysis. Trend-trend analysis has the advantage of being easy to use, comprehensive and objective, and widely applicable, while the disadvantage is that it is too static, lacks quantification, and is subjective.

Trend-trend transformation: A method of analyzing how a competitor's trend is transformed into a trend, or how a competitor's trend is transformed into a trend, to form a competitor's trend-trend transformation table for ease of development and implementation. The advantage of trend-trend transformation is that it is creative, helpful to break through, and helpful to deal with. The disadvantage is that it is more difficult, requires conditions, and has risks.

Trend-trend matching: A method of analyzing how a competitor's trend matches a company's trend, or how a competitor's trend matches a company's trend, to form a competitor's trend-trend matching table for easy learning and reference. The advantages of trend-trend matching are that it is targeted, enlightening and informative, while the disadvantages are that it requires information, analysis and judgment.

The principle of predicting competitor movements and trends is to identify and evaluate trends and trends using a combination of methods based on the purpose and questions of competitor research, as well as the types and characteristics of competitors, in order to improve the effectiveness and usefulness of competitor analysis.

8. form a competitor's portrait and evaluation

The portrait of a competitor is a method of summarizing and describing the basic information, characteristics, behavior, attitude, motivation, etc. of a competitor, so as to form a concise and vivid image of the competitor. Competitor evaluation refers to the comprehensive and evaluation of competitors' strengths and weaknesses, differences, similarities, trends, trends, etc., so as to form an objective and fair evaluation of competitors. The purpose of forming the portrait and evaluation of competitors is to understand the whole picture and essence of competitors, so as to provide reference and guidance for enterprises to formulate their own positioning and optimization. In general, there are several ways to form a portrait and evaluation of a competitor:

Portrait-evaluation analysis: refers to the method of painting and evaluating competitors separately to form a portrait-evaluation matrix of competitors for comparison and analysis. Portrait-evaluation analysis has the advantages of being intuitive, easy to summarize, and helpful to discovery, while the disadvantages are simplicity, lack of depth, and subjectivity.

Portrait-evaluation transformation: a method of analyzing how a competitor's portrait is transformed into an evaluation, or how a competitor's evaluation is transformed into a portrait, to form a competitor's portrait-evaluation transformation table for ease of development and implementation. The advantages of portrait-evaluation transformation are that it is creative, helpful to break through, and helpful to deal with, but the disadvantages are that it is more difficult, requires conditions, and has risks.

Portrait-evaluation matching: a method of analyzing how a competitor's portrait matches a company's evaluation, or how a competitor's evaluation matches a company's portrait, to form a competitor's portrait-evaluation matching table for easy learning and reference. Portrait-evaluation matching has the advantages of being targeted, enlightening, and referential, while the disadvantages are the need for information, analysis, and judgment.

The principle of forming a competitor's portrait and evaluation is to use a variety of methods to generate and present the portrait and evaluation according to the purpose and problem of competitor research, as well as the type and characteristics of the competitor, in order to improve the effectiveness and practicality of competitor analysis.

Conclusion

Competitor research is an important market research activity, which can provide valuable information and insight for enterprises, help enterprises to formulate effective strategies and marketing strategies, and enhance their competitiveness and market share. This article provides companies with eight tips for competitor research, namely:

Identify the scope and type of competitors

Set objectives and questions for competitor research

Selection of appropriate information sources and collection methods

Use effective data analysis tools and models

Focus on competitors' strengths and weaknesses

Compare differences and similarities among competitors

Predict competitor movements and trends

Formation of a competitor's portrait and evaluation

Taking Shangpu Consulting Company as an example, combined with its business characteristics and competitive environment in the fields of market research, investment and financing consulting, IPO listing consulting, etc., this paper uses the above eight skills to carry out the practice of competitor research, shows the process and results of competitor research, and provides targeted strategic suggestions for Shangpu Consulting Company.