The Importance of 1. Competitor Research

In today's market economy environment, enterprises are facing fierce competitive pressure, not only to deal with changes in customer demand, technological progress in the industry, policy adjustments and other external factors, but also to pay attention to the trend and behavior of competitors, in order to prevent being overtaken by competitors or eliminated by the market. Therefore, competitor research has become an indispensable work for enterprises, which is of great significance in the following aspects:

Identify market opportunities. Through competitor research, companies can understand competitors' market positioning, target customers, product characteristics, price strategies, channel layout, marketing activities, etc., and find out the strengths and weaknesses of competitors, as well as market gaps and needs, so as to find their own Differentiation and breakthrough points, seize market opportunities, and increase market share and profit margins.

Avoid market risk. Through competitor research, enterprises can timely grasp the dynamics and changes of competitors, such as the introduction of new products, the application of new technologies, the establishment of new cooperation, the impact of new policies, etc., so as to predict the possible actions of competitors and their impact on the market, and make corresponding countermeasures in time to avoid being seized by competitors or eliminated by the market.

Improve product and service quality. Through competitor research, companies can compare their products and services with those of competitors, evaluate and analyze their functions, quality, performance, design, experience, etc., and find out their own advantages and disadvantages, so as to continuously improve and Innovate your own products and services to enhance customer satisfaction and loyalty.

Optimize resource allocation. Through competitor research, enterprises can determine their own strategies and objectives according to the strategies and capabilities of competitors, and reasonably allocate their own resources, such as manpower, capital, technology, channels, etc., in order to maximize efficiency and effectiveness and avoid waste and mismatch of resources.

Enhance brand influence. Through competitor research, companies can clarify their brand positioning, propositions, image, personality, etc., and conduct differentiated and distinctive brand building with competitors, enhance their brand awareness and reputation, and enhance their brand influence and competition. force.

Methods and procedures for 2. competitor research

Competitor research is a systematic process that requires certain methods and steps to be followed to ensure the effectiveness and accuracy of the research. In general, competitor research can be divided into the following five steps:

Identify research objects. The first step in competitor research is to identify the target of the research, I .e. which competitors need to be investigated. This step needs to be based on their own market positioning, target customers, product characteristics, etc., to screen out competitors who have a direct or indirect competitive relationship with them, which can generally be divided from the following aspects:

direct competitors. Refers to competitors that provide the same or similar products or services, target the same or similar target customers, and adopt the same or similar marketing strategies, such as Tesla and Celeste.

Indirect competitors. Refers to competitors that provide different but alternative products or services, and adopt different marketing strategies for the same or similar target customers, such as Tesla and BYD Auto.

potential competitors. Refers to competitors that have not yet formed a direct or indirect competitive relationship with themselves, but may enter their own market or field in the future, or expand the scope of their products or services, and form a competitive relationship with themselves, such as Tesla and Apple Motors.

General competitors. Refers to competitors, such as Tesla and Mercedes-Benz, who offer different and irreplaceable products or services and adopt different marketing strategies for different target customers.

Collect information. The second step of competitor research is to collect information, that is, to collect a variety of information about competitors, including basic information, strategic information, capability information, advantage information, disadvantage information, dynamic information and expected information. This step requires the use of a variety of channels and methods to obtain as comprehensive, accurate and timely information as possible, which can generally be collected from the following aspects:

Public information. Refers to information publicly released by competitors, such as official websites, social media, news reports, financial reports, recruitment information, advertising, product manuals, etc., which are generally easy to obtain, but may also be distorted, outdated, incomplete, etc.

Non-public information. Refers to information that competitors do not publicly release, such as internal strategy, core technology, customer data, market dynamics, future plans, etc., which is generally difficult to obtain, but may also have higher value and authenticity.

First-hand information. Refers to the information obtained through one's own personal experience or direct investigation, such as purchasing competitors' products or services, conducting trials or tests, or conducting interviews or questionnaires with competitors' customers, employees, suppliers, partners, etc. The information is generally true, effective, and timely, but there may also be problems such as high cost, difficulty, and small scope.

Second-hand information. Refers to the information obtained through third-party institutions or experts, such as industry reports, market research, professional consulting, academic papers, etc. These information are generally authoritative, professional, and systematic, but there may also be problems such as lagging, incomplete, and untargeted.

Analysis and evaluation. The third step of competitor research is analysis and evaluation, that is, the information collected is collated, summarized, classified, compared, calculated, etc., in order to arrive at valuableConclusionand insights to support business decisions. This step requires the use of a variety of analytical tools and methods to analyze and evaluate from different angles and levels, which can generally be analyzed in the following ways:

Strategic analysis of competitors. Refers to the analysis of competitors' strategic objectives, strategic choices, strategic execution, etc., in order to understand the development direction of competitors, priorities, core competitiveness, etc., commonly used tools and methods are SWOT analysis, Porter five forces analysis, value chain analysis, VRIO analysis.

Competence analysis of competitors. Refers to the ability to analyze competitors' resources, technology, talent, innovation, finance, etc., in order to understand the strength level of competitors, areas of advantage, areas of disadvantage, etc., commonly used tools and methods are resource-based theory, core competence theory, balanced scorecard, financial ratio analysis.

Competitor advantage analysis. Refers to the analysis of competitors' advantages in the market, such as brand awareness, customer loyalty, market share, product quality, service level, channel coverage, cost control, etc., to understand competitors' competitive advantages and sustainable advantages. Commonly used tools and methods include competitive advantage matrix, sustainable advantage matrix, market share analysis, customer satisfaction analysis, etc.

Competitor disadvantage analysis. Refers to the analysis of competitors' disadvantages in the market, such as brand image, customer churn, market gaps, product defects, lack of service, channel bottlenecks, cost increases, etc., to understand competitors' competitive disadvantages and potential crises. Commonly used tools and methods include competitive disadvantage matrix, potential crisis matrix, market gap analysis, customer churn analysis, etc.

Dynamic analysis of competitors. Refers to the analysis of the dynamic changes of competitors, such as the introduction of new products, the application of new technologies, the establishment of new cooperation, the impact of new policies, etc., in order to understand the actions and reactions of competitors, commonly used tools and methods are dynamic competition analysis, competitor reaction analysis, competitor prediction analysis.

Competitor expectations analysis. Refers to the analysis of competitors' expected goals, expected strategies, expected behaviors, etc. to understand competitors' intentions and motivations, commonly used tools and methods include competitor intent analysis, competitor motivation analysis, competitor behavior analysis, etc.

Develop a strategy. The fourth step in competitor research is to develop a strategy, that is, to develop your own strategy and marketing strategy based on the results of the analysis and evaluation to respond to the threats and challenges of competitors, or to use the opportunities and weaknesses of competitors to achieve your goals and strengths. This step needs to be combined with their own actual situation, to develop a reasonable, feasible and effective strategy, generally can be formulated from the following aspects:

Develop your own strategy for your competitor's strategy. Refers to the development of their own strategic objectives, strategic choices, strategic execution, etc., according to the strategic objectives, strategic choices, strategic execution, etc., in order to achieve strategic matching or strategic differentiation with competitors, commonly used strategies are follow strategy, leading strategy, breakout strategy, bypass strategy, etc.

Develop your own capabilities against those of your competitors. Refers to the ability to develop one's own resources, technology, talent, innovation, finance, etc. based on the competitors' resources, technology, talent, innovation, finance, etc., in order to achieve a balance with competitors or ability to surpass, commonly used Strategies include catch-up strategy, transcendence strategy, differentiation strategy, specialization strategy, etc.

Develop your own strengths against those of your competitors. It refers to formulating its own advantages in brand awareness, customer loyalty, market share, product quality, service level, channel coverage, cost control and other aspects according to the advantages of competitors in brand awareness, customer loyalty, market share, product quality, service level, channel coverage, cost control and other aspects, so as to realize the competition or outstanding advantages with competitors, commonly used strategies are confrontation strategies, imitation strategies, innovation strategies, and focus strategies.

Develop your own weaknesses against those of your competitors. It refers to formulating one's own disadvantages in terms of brand image, customer loss, market gap, product defect, service deficiency, channel bottleneck, cost increase, etc. according to the disadvantages of competitors' brand image, customer loss, market gap, product defect, service deficiency, channel bottleneck, cost increase, etc., so as to avoid or improve the disadvantages with competitors, common strategies include avoidance strategies, improvement strategies, filling strategies, and transfer strategies.

Develop your own dynamics for the dynamics of your competitors. Refers to the dynamic changes in the aspects of the introduction of new products, the application of new technologies, the establishment of new cooperation, the influence of new policies and so on according to the dynamic changes in the aspects of the introduction of new products, the application of new technologies, the establishment of new cooperation and the influence of new policies of competitors, so as to realize the dynamic follow-up or dynamic lead with competitors, commonly used strategies are follow-up strategies, leading strategies, counter-strategies, and cooperative strategies.

Develop your own expectations in response to competitors' expectations. It refers to the formulation of one's own expected goals, expected strategies, expected behaviors and other aspects of the expected situation according to the expected goals, expected strategies, expected behaviors and other aspects of the competitors, so as to achieve the expected matching or expected exceeding with the competitors. The commonly used strategies include matching strategy, surpassing strategy, interference strategy, influence strategy, etc.

Perform monitoring. The fifth step of competitor research is to implement monitoring, that is, to implement corresponding actions according to the formulated strategies, and to monitor the effects and feedback of oneself and competitors, as well as changes and trends in the market, and to adjust and optimize your strategies and actions in a timely manner. Maintain your competitiveness. This step requires the establishment of an effective enforcement mechanism and monitoring mechanism to ensure the implementation of the strategy and the evaluation of its effectiveness, which can generally be implemented and monitored from the following aspects:

Develop an implementation plan. Refers to the formulation of specific implementation plans based on the developed strategy, including implementation objectives, implementation content, implementation steps, implementation responsibilities, implementation time, implementation budget, etc., to ensure the landing and implementation of the strategy.

Establish an executive team. It refers to the establishment of a professional executive team according to the executive plan, including the executive director, executive members, executive coordinator, etc., to ensure the cooperation and efficiency of the implementation.

Implementation of enforcement actions. Refers to the implementation of specific implementation actions according to the implementation plan and the implementation team, such as the development of new products, the application of new technologies, the establishment of new cooperation, the promotion of new brands, the provision of new services, etc., to ensure the quality and effectiveness of the implementation.

Monitor the execution effect. Refers to the implementation plan and implementation actions, monitoring their own implementation results, such as market feedback, customer satisfaction, sales performance, profit levels, brand influence, etc., to ensure the evaluation and improvement of implementation.

Monitor competitor reactions. Refers to the monitoring of competitors' responses, such as competitors' actions and feedback, competitors' strengths and weaknesses, competitors' dynamics and expectations, etc., based on execution plans and execution actions, to ensure that execution is responsive and optimized.

Monitor market changes. Refers to monitoring changes in the market, such as market demand and supply, market opportunities and risks, market trends and laws, etc., according to the implementation plan and implementation actions, to ensure the adaptation and innovation of the implementation.

Cases and Effects of 3. Competitor Research

In order to better illustrate the process and significance of competitor research, the following combines the actual case of Shangpu Consulting Company to show the application and effect of competitor research.

Shangpu Consulting Co., Ltd. is a company specializing in consulting services in the fields of corporate strategy, marketing, organizational change, human resources, financial management, etc., with many years of industry experience and professional knowledge, providing high-quality consulting solutions for many customers Program. The main competitors of Shangpu Consulting Company include internationally renowned consulting companies such as McKinsey, Boston, and Bain, as well as leading domestic technology companies such as Huawei, Alibaba, and Tencent. These competitors have strong brand influence, customer resources, and Technical capabilities, innovation capabilities and other advantages have placed huge competitive pressure on Shangpu Consulting Company.

In order to improve its competitiveness, Shangpu Consulting conducted a comprehensive competitor survey, the specific process and results are as follows:

Identify research objects. Shangpu Consulting has determined its market positioning, target customers, product characteristics, etc., and selected competitors with which it has a direct or indirect competitive relationship, divided into the following four categories:

direct competitors. Refers to competitors who provide the same or similar consulting services as Champ Consulting and use the same or similar marketing strategies for the same or similar target customers, such as McKinsey, Boston, Bain and other internationally renowned consulting firms.

Indirect competitors. Refers to competitors who provide different but alternative consulting services with Shangpu Consulting and adopt different marketing strategies for the same or similar target customers, such as Huawei, Alibaba, Tencent and other leading domestic technology companies. they meet the consulting needs of customers by providing cloud computing, big data, artificial intelligence and other technical services.

potential competitors. Refers to the competitors who have not formed a direct or indirect competitive relationship with Shangpu Consulting Company at present, but may enter the market or field of Shangpu Consulting Company in the future, or expand the scope of their own consulting services. to form a competitive relationship with Shangpu Consulting Company, such as Baidu, Jingdong, Meituan and other rapidly developing Internet companies in China, they provide personalized consulting services by collecting and analyzing massive user data.

General competitors. Refers to competitors who provide different and irreplaceable consulting services with Champ Consulting and adopt different marketing strategies for different target customers, such as Deloitte, PricewaterhouseCoopers, Ernst & Young and other internationally renowned accounting firms, which provide professional services such as audit, tax and legal services to meet the consulting needs of customers.

Collect information. Champu Consulting uses a variety of channels and methods to collect information about competitors, including the following:

Basic information about competitors, such as company name, time of establishment, registered capital, legal representative, shareholder structure, organizational structure, employee size, geographic location, major business, major customers, major partners, etc.

Competitor's strategic situation, such as strategic objectives, strategic choices, strategic implementation, strategic assessment, etc.

Competitor capabilities, such as resource capabilities, technical capabilities, talent capabilities, innovation capabilities, and financial capabilities.

The advantages of competitors, such as brand advantage, customer advantage, market advantage, product advantage, service advantage, channel advantage, cost advantage, etc.

Competitor disadvantage, such as brand disadvantage, customer disadvantage, market disadvantage, product disadvantage, service disadvantage, channel disadvantage, cost disadvantage, etc.

The dynamic situation of competitors, such as the launch of new products, the application of new technologies, the establishment of new cooperation, the impact of new policies, etc.

The expected situation of competitors, such as expected goals, expected strategies, expected behaviors, etc.

Analysis and evaluation. The information collected was analyzed and evaluated by Champ Consulting, using a variety of analytical tools and methods, from different angles and levels, and the following aspects were obtained.Conclusionand insight:

Strategic analysis of competitors. Shangpu Consulting Company found that the strategic goal of the competitor is to become the world's leading consulting service provider. The strategic choice of the competitor is to achieve the strategic goal through specialization, internationalization, diversification and innovation. The strategic implementation of the competitor is to achieve the strategic choice through strengthening internal management, improving service quality, expanding market channels and increasing customer satisfaction, the strategic evaluation of competitors is to achieve strategic optimization by setting key performance indicators, monitoring strategic progress, adjusting strategic measures, and summarizing strategic experience.

Competence analysis of competitors. Shangpu Consulting found that competitors are rich in resources and capabilities, with multiple international and domestic branches, covering multiple industries and fields, multiple well-known customers and partners, multiple patents and honors, and sufficient funds and equipment. Competitors have advanced technical capabilities, master a variety of consulting methods and tools, and use a variety of data analysis and model building techniques, introduce a variety of artificial intelligence and cloud computing technologies to provide a variety of customized and intelligent consulting solutions; the talent ability of competitors is excellent, with a number of consultants with rich experience and professional knowledge, a number of consulting managers with international vision and cross-cultural communication ability, and a number of consulting assistants with innovative thinking and learning ability; the innovation ability of competitors is strong, continuously introduce new consulting services and products, constantly explore new consulting fields and markets, constantly introduce new consulting concepts and models, and constantly improve the consulting process and quality; the financial ability of competitors is sound, with high operating income and profits, with a low proportion of liabilities and costs, with a high level of assets and efficiency.

Competitive advantage analysis. Shangpu Consulting found that the brand advantages of competitors are significant, with a high degree of brand awareness and reputation, a strong brand image and personality, a clear brand positioning and proposition, and a unique brand logo and visual identification system; The customer advantage of competitors is outstanding, with multiple loyal and satisfied customers, and multiple long-term and stable customers, has a number of large and important customers, has a number of influential and reputable customers; the competitor's market advantage is obvious, with a high market share and growth rate, with a wide range of market coverage and penetration, with a variety of market segmentation and positioning, with strong market competition and leadership; the competitor's product advantage is significant, with high-quality product design and research and development, it has high-performance product functions and characteristics, high-value product effects and experiences, and high-innovation product forms and contents; the service advantages of competitors are outstanding, with high-level service quality and standards, and high-efficiency services. Process and speed, service attitude and method with high satisfaction, service relationship and maintenance with high loyalty; the channel advantages of competitors are obvious, it has a multi-channel sales network and platform, strong channel control and management, good channel cooperation and coordination, and preferential channel policies and support; the cost advantage of competitors is significant, with low-cost procurement and production, With low-cost operation and maintenance, with low-cost sales and promotion, with low-cost R & D and innovation.

Develop a strategy. The fourth step in competitor research is to develop a strategy, I .e., to develop your own strategy and marketing strategy based on the results of the analysis and evaluation to address the impact and threats of your competitors and to achieve your goals and advantages. This step needs to combine their own internal situation and external environment, comprehensive consideration and trade-off, choose the most suitable strategy, generally can be formulated from the following aspects:

Develop your own strengths against those of your competitors. Refers to the development of their own advantages according to the advantages of competitors, in order to achieve the advantages of competitors or advantages beyond, commonly used strategies are imitation strategy, improvement strategy, innovation strategy, differentiation strategy.

Develop your own weaknesses against those of your competitors. Refers to the development of one's own weaknesses based on the weaknesses of competitors in order to avoid or reduce the weaknesses of competitors, commonly used strategies include avoidance strategies, improvement strategies, transformation strategies, and focus strategies.