Purpose of 1. Competitor Research

The purpose of competitor research is to collect and analyze information related to a company's competitors, including their background, products or services, market share, pricing strategy, marketing strategy, financial status, innovation capabilities, strengths and weaknesses. Through competitor research, companies can:

Understand your position and competitiveness in the industry, evaluate your strengths and weaknesses, and find out your differentiated strengths and core competitiveness;

Understand the dynamics and trends of competitors, predict the future actions and reactions of competitors, and formulate corresponding countermeasures and preventive measures;

Understand the needs and changes in the market, identify potential opportunities and threats, and develop appropriate market positioning and target markets;

Understand the needs and preferences of customers, improve the quality and satisfaction of their products or services, and increase customer loyalty and stickiness;

Understand the rules and standards of the industry, comply with laws and regulations and industry ethics, and avoid unnecessary risks and disputes.

Methods and tools for 2. competitor research

The methods and tools of competitor research can be divided into two categories: active research and passive research. Active research refers to the company's initiative to collect and analyze competitor information, such as through interviews, questionnaires, observations, trials, purchases, etc. Passive research refers to the use of existing information resources to collect and analyze competitor information, such as through the network, media, reports, databases and so on. Here are some commonly used methods and tools for competitor research:

Competitor's website: Competitor's website is an important channel to understand competitors' basic information and products or services. You can obtain competitors' promotional materials, news announcements, customer evaluations, event information, etc. by browsing, downloading, and subscribing.

Competitor's social media: Competitor's social media is an important channel to understand the dynamics and reputation of competitors. You can obtain competitors' published content, interactions, number of fans, and word-of-mouth evaluations through attention, comments, and forwarding.

Competitor customers: Competitor customers are an important channel to understand the quality and satisfaction of competitors' products or services, and can obtain competitors' customers' needs, preferences, satisfaction, loyalty, complaints, etc. through interviews, questionnaires, surveys, etc.

Competitor suppliers: Competitor suppliers are an important channel to understand the cost and efficiency of competitors, and can obtain the quality, price, quantity, delivery time, contract terms, etc. of competitors' suppliers through interviews, cooperation, price comparison, etc.

Competitor distributors: competitors' distributors are an important channel to understand competitors' market share and sales, and can obtain the number, region, type, strategy, performance, etc. of competitors' distributors through interviews, cooperation, comparison, etc.

Competitor employees: Competitor employees are an important channel to understand the internal situation and innovation ability of competitors. They can obtain the background, skills, attitude, turnover rate, innovation projects, etc. of competitors' employees through recruitment, communication, cooperation, etc.

Competitor patents: competitors' patents are an important channel to understand competitors' technical level and research and development direction, and the number, type, scope, validity period and citation of competitors' patents can be obtained through inquiry, analysis and comparison.

Competitor financial report: Competitor's financial report is an important channel to understand the competitor's operating and financial situation, through reading, analysis, comparison and other ways to obtain the competitor's financial report income, expenses, profits, assets, liabilities, cash flow and so on.

Competitor industry reports: Competitor industry reports are an important channel to understand competitors' industry environment and market trends, and you can obtain competitors' industry reports on industry size, growth rate, structure, competitive landscape, opportunities and threats by reading, analyzing, and comparing them.

Competitor analysis tools: Competitor analysis tools are important tools for integrating and presenting competitor information, and you can obtain charts, tables, matrices, models, frameworks, etc. of competitor analysis tools through use, production, and sharing. For example, SWOT analysis, Porter's Five Forces analysis, value chain analysis, VRIO analysis, etc.

Use of 3. competitor survey results

The use of the results of competitor research refers to the development and implementation of a firm's competitive strategy based on the results of competitor research in order to enhance the competitiveness of the firm. The following aspects should be considered in the formulation and implementation of a competitive strategy:

Competitor's strengths and weaknesses: Enterprises should analyze the strengths and weaknesses of competitors, find out their own differentiation advantages and core competitiveness, as well as the weaknesses and loopholes of competitors. Enterprises can choose different competitive strategies according to their own advantages and disadvantages, such:

Cost leadership strategy: if the cost advantage of the enterprise is obvious, it can attract price-sensitive customers by providing low-cost products or services, expand market share, form economies of scale, further reduce costs and resist the attack of competitors;

Differentiation strategy: if the enterprise's products or services have unique characteristics or values, it can attract quality-sensitive customers by providing high-quality products or services, improve customer loyalty and stickiness, form a brand effect, further increase the premium, and resist the imitation of competitors;

Focus strategy: if the target market of the enterprise has a clear division or segmentation, it can provide customized products or services to meet the needs of specific customer groups, improve customer satisfaction and reputation, form a loyalty effect, further increase market share and resist the penetration of competitors.

Competitor dynamics and trends: Enterprises should pay attention to the dynamics and trends of competitors, predict the future actions and reactions of competitors, and formulate corresponding countermeasures and preventive measures. According to the dynamics and trends of competitors, enterprises can choose different coping strategies, such:

Defense strategy: If the threat of competitors is greater, you can protect your existing market share and profits by maintaining or improving the quality, price, service, etc. of your products or services, and prevent competitors from encroaching or grabbing;

Offensive strategy: if competitors have more opportunities, they can attack or challenge the existing market share and profits of competitors by reducing or improving the quality, price, service, etc. of their products or services, forcing competitors to give up or give up;

Cooperation strategy: If competitors have a high potential for cooperation, they can cooperate or form alliances with competitors by establishing or strengthening the complementarity, compatibility, reciprocity, etc. of their products or services, sharing or expanding market share and profits, and reducing or avoiding rivalry or conflict with competitors.

Market needs and changes: Companies should understand market needs and changes, identify potential opportunities and threats, and develop appropriate market positioning and target markets. Enterprises can choose different market strategies according to the needs and changes of the market, such:

Market penetration strategy: if the market demand and changes are small, you can increase your market share and profit in the existing market by increasing the sales volume or frequency of use of your products or services, and enhance your market position and competitiveness;

Market development strategy: if the market demand and changes greatly, we can improve the coverage and contact number of our products or services by opening up new regions, channels and customers, increase our potential market share and profits, and expand our market space and competitiveness;

Product development strategy: if the market demand and changes quickly, you can develop new products or services, or improve existing products or services, to improve the function or performance of their products or services, increase their existing market share and profits, to create their own market advantages and competitiveness;

Diversification strategy: If the market demand and changes are more complex, you can improve the diversity or difference of your products or services by entering new industries or fields, or providing new products or services, and increase your new market share and profit, forming your own market balance and competitiveness.

Customer needs and preferences: Companies should understand customer needs and preferences, improve the quality and satisfaction of their products or services, and increase customer loyalty and stickiness. Enterprises can choose different customer strategies according to their needs and preferences, such:

Customer segmentation strategy: if the needs and preferences of customers are scattered, customers can be divided into different market segments, according to the characteristics of each market segment, to provide different products or services, to meet different customer needs and preferences, improve customer satisfaction and loyalty;

Customer relationship strategy: if the customer's needs and preferences are more stable, we can meet the customer's needs and preferences and improve the customer's stickiness and loyalty by establishing and maintaining a long-term cooperative relationship with the customer and providing continuous products or services;

Customer value strategy: If the customer's needs and preferences are more changing, you can create and deliver customer value by providing high-value products or services to meet customer needs and preferences and increase customer recognition and loyalty.

4. Shangpu Consulting's competitor research case.

Shangpu Consulting Company is a professional market analysis and consulting company, providing customers with comprehensive competitor research services, helping customers understand their competitive environment, formulate effective competitive strategies, and enhance their competitiveness. Here are some specific examples of Champu Consulting's competitor research for clients:

Case 1: Conduct competitor research for an e-commerce platform, analyze the background, products or services, market share, price strategy, marketing strategy, financial situation, innovation ability, advantages and disadvantages of its competitors in the Chinese market, and put forward the following suggestions:

Take advantage of its own international brands and overseas resources, provide high-quality and diversified products or services, attract quality-sensitive customers, and improve its own differentiation advantages and brand effect;

Take advantage of their own technology and innovation, provide convenient and safe shopping experience, attract technology-sensitive customers, improve their efficiency advantages and innovation effect;

Leverage your own social and content strengths, provide interesting and useful social and content features, attract socially sensitive customers, and improve your own interactive strengths and word-of-mouth effects;

According to the characteristics and needs of the Chinese market, adjust and optimize the localization, provide products or services that meet the habits and preferences of Chinese customers, and improve their adaptive advantages and satisfaction effects;

In view of the actions and reactions of competitors in the Chinese market, we should carry out flexible response and prevention, provide competitive prices and services, and improve our own defense advantage and protection effect.

Case 2: Conduct a competitor survey for an automobile manufacturer, analyze the background, products or services, market share, price strategy, marketing strategy, financial situation, innovation ability, advantages and disadvantages of its competitors in the European market, and put forward the following suggestions:

Use the advantages of their own design and craftsmanship to provide high quality and high-performance cars, attract high-end and professional customers, and improve their own quality advantages and premium effects;

Use their own advantages of environmental protection and energy saving, provide low-emission and low-fuel-consumption cars, attract environmentally friendly and economical customers, and improve their responsibility advantages and saving effects;

Take advantage of their intelligence and safety to provide intelligent and safe cars, attract intelligent and safe customers, and improve their technical advantages and trust effect;

According to the characteristics and needs of the European market, carry out diversified development and promotion, provide diversified and personalized cars in line with European customers, and improve their diversified advantages and loyalty effects;

The actions and reactions of competitors in the European market are actively attacked and cooperated, providing attractive prices and services, and improving their attack advantages and cooperative effects.

Case 3: Conduct a competitor survey for an educational institution, analyze the background, products or services, market share, price strategy, marketing strategy, financial situation, innovation ability, advantages and disadvantages of its competitors in the U.S. market, and put forward the following suggestions:

Use the advantages of their own teachers and courses to provide high-level and high-quality educational services, attract learning and growth customers, and improve their teaching advantages and results;

Make use of the advantages of its own platform and resources, provide convenient and rich educational services, attract convenient and diversified customers, and improve its platform advantages and resource effects;

Leverage the strengths of your community and culture, provide interesting and meaningful educational services, attract interesting and meaningful customers, and enhance your community strengths and cultural effects;

According to the characteristics and needs of the US market, make innovation and optimization improvements and updates, provide educational services that meet the needs and preferences of US customers, and improve their innovation advantages and optimization effects;

In response to the actions and reactions of competitors in the US market, conduct reasonable and effective defense and penetration, provide competitive prices and services, and improve their defense advantages and penetration effects.