Purpose of Competitor Analysis

The purpose of competitor analysis is to assess the strength, strategy, behavior and trends of competitors from multiple dimensions by collecting, collating and analyzing relevant information about competitors, so as to provide a basis for enterprises to formulate reasonable competitive strategies. Specifically, competitor analysis can help companies achieve the following objectives:

Find your opponent's way to success. By analyzing the competitors' products, services, brands, channels, prices, promotions and other elements, we can find out the core competitiveness and advantages of competitors, and learn from them.

Analyze the competitive strategies of competitors. By analyzing the objectives, positioning, differentiation and innovation of competitors, we can understand the competitive ideas and action plans of competitors, and predict the future trends and possible reactions of competitors.

Find the strategic weaknesses of competitors. By analyzing the disadvantages, risks, threats and constraints of competitors, we can find the weaknesses and loopholes of competitors and find breakthroughs and opportunities.

Analyze the consumer mind points occupied by competitors. By analyzing the competitor's brand image, word of mouth, loyalty, satisfaction and other aspects, to understand the status and influence of competitors in the minds of consumers, to find out the gap and advantages between themselves and competitors.

Look for differentiation possibilities. By analyzing the degree of homogenization, substitution and complementarity of competitors, we can find out the similarities and differences between ourselves and competitors, and create our own unique value and selling points.

Find your own breakthrough point in the industry. By analyzing the market share, growth rate and profit margin of competitors, we can understand our position and potential in the industry, determine our target market and market segment, and choose the appropriate competition mode and mode.

Content of Competitor Analysis

The content of competitor analysis can be divided into two categories: basic information and strategic information. Basic information refers to the general situation of competitors, such as enterprise profile, development history, organizational structure, financial situation, human resources, etc. Strategic information refers to the strategic elements of competitors, such as product strategy, brand strategy, channel strategy, price strategy, promotion strategy, innovation strategy, etc. Specifically, the content of competitor analysis can include the following aspects:

Enterprise Profile. Including the competitor's name, address, telephone, website, legal representative, registered capital, shareholder structure, business scope, main products, main customers, main partners and other basic information.

development course. Including the competitor's establishment time, development stage, major events, milestones, honor awards, social responsibility and other development information.

Organizational structure. Including the competitor's organizational form, organizational structure, management, core team, department functions, decision-making process and other organizational information.

Financial position. Includes financial information such as competitors' operating income, operating costs, operating profit, net profit, assets and liabilities, cash flow, and financial ratios.

Human resources. Including the number of employees, employee structure, employee quality, employee training, employee motivation, employee benefits, employee mobility and other human information of competitors.

product strategy. Including competitors' product types, product features, product features, product quality, product innovation, product life cycle, product portfolio, product positioning and other product information.

brand strategy. Including the competitor's brand name, brand identity, brand image, brand slogan, brand concept, brand culture, brand communication, brand loyalty and other brand information.

Channel strategy. Including the competitor's channel type, channel level, channel coverage, channel control, channel cooperation, channel conflict, channel innovation and other channel information.

price strategy. Including competitors' price level, price structure, price elasticity, price change, price strategy, price psychology, price competition and other price information.

Promotion strategy. Including competitors' promotional objectives, promotional methods, promotional tools, promotional content, promotional timing, promotional effectiveness, promotional innovation and other promotional information.

innovation strategy. Including competitors' innovation ideas, innovation models, innovation projects, innovation results, innovation inputs, innovation risks, innovation protection and other innovation information.

Steps for competitor analysis

The steps of competitor analysis can be divided into four stages: identifying competitors, collecting information, analyzing information, and developing strategies. Specifically, the steps of competitor analysis can include the following steps:

Identify competitors. According to their own products, markets, objectives and other factors, determine their potential competitors and real competitors, as well as their competitive relationship and the degree of competition. Tools such as Porter's five forces model, strategic group analysis, and market sharing matrix can be used to assist in identifying competitors.

Analyze the information. Based on the information collected, use appropriate analytical tools and techniques to systematically evaluate and compare the strengths, strategies, behaviors and trends of competitors to identify their strengths and weaknesses, as well as their own opportunities and threats. Tools such as SWOT analysis, PEST analysis, Boston matrix, value chain analysis, and VRIO analysis can be used to assist in analyzing information.

Develop a strategy. According to the results of the analysis, develop their own competitive strategy, including competitive objectives, competitive positioning, competitive differentiation, competitive innovation and so on. Competitive strategies should be in line with their own resources, capabilities and environment, as well as market needs and changes. Porter's competitive strategy model, blue ocean strategy model, resource-based theory and other tools can be used to assist in the formulation of strategies.

Competitor analysis tools and techniques

There are many tools and techniques for competitor analysis, but here are just a few of them:

Porter's Five Forces Model. This is a model for analyzing the competitive structure and intensity of an industry, which argues that the competitiveness of an industry is influenced by five forces: competitors within the industry, potential entrants, substitutes, suppliers, and buyers. By analyzing the size and changes of these five forces, you can understand the attractiveness and profitability of the industry, as well as your own competitive position and competitive advantage.

Strategic group analysis. This is a method of analyzing the similarities and differences of competitors in the industry, which argues that competitors in the industry can be divided into different strategic groups based on their strategic elements, such as products, prices, channels, services, etc. By analyzing the characteristics and relationships of strategic groups, you can understand your competitors and competitive pressures, as well as your competitive space and competitive strategies.

market sharing matrix. This is a tool to analyze the market performance and market potential of competitors in the industry. It believes that competitors in the industry can be divided into four types according to their market share and market growth rate, namely, stars, problem children, cash cows and thin dogs. By analyzing the characteristics and strategies of these four types, you can understand your competitors and competitive advantages, as well as your own market goals and market strategies.

SWOT analysis. This is a method of analyzing the strengths, weaknesses, opportunities and threats of oneself and competitors. It believes that the competitiveness of oneself and competitors is affected by internal and external factors, which are advantages, disadvantages, opportunities and threats. By analyzing the size and changes of these four factors, we can understand the competitive situation and competitive strategies of ourselves and our competitors, as well as our own competitive advantages and disadvantages.

PEST analysis. This is a method of analyzing the macro environment in which you and your competitors operate, arguing that your competitiveness and that of your competitors are influenced by four factors: political, economic, social and technological. By analyzing the characteristics and trends of these four aspects, we can understand the opportunities and challenges faced by ourselves and our competitors, as well as our own competitive advantages and disadvantages.

The case of Champ Consulting.

Shangpu Consulting is a professional market research, investment consulting and IPO consulting service provider, with many years of industry experience and professional team to provide customers with high-quality consulting services. In the process of providing consulting services to customers, Shangpu Consulting extensively uses the methods and techniques of competitor analysis to provide customers with valuable insights and suggestions. Here are some of the cases of Champ Consulting:

Market research case: Shangpu Consulting provided a European automaker with market research services on the Chinese market to help it understand the scale, structure, demand, trends, competitors and other aspects of the Chinese market, and to formulate its entry strategy for the Chinese market. Using Porter's five forces model, strategic group analysis, market sharing matrix and other tools, Shangpu Consulting conducted an in-depth analysis of the competitive environment of China's automobile market, and found out the attractiveness and difficulties of China's automobile market, as well as the opportunities and threats of European automobile manufacturers. Shangpu Consulting also used SWOT analysis, PEST analysis and other tools to systematically evaluate the strengths, weaknesses, opportunities and threats of European automakers, and formulate appropriate market positioning, product strategy, channel strategy, Price strategy, promotion strategy and other recommendations.

Investment Advisory Case: Shangpu Consulting provided China investment advisory services to a US venture capital fund to help it find and evaluate investment opportunities in China and provide guidance for its investment strategy in China. Using tools such as Boston Matrix, Value Chain Analysis, and VRIO Analysis, Shangpu Consulting conducted a comprehensive analysis of the investment potential and investment risks of various industries and sectors in China, identifying investment hotspots and difficulties in China, as well as the strengths and weaknesses of U.S. venture capital funds. Shangpu Consulting also used SWOT analysis, PEST analysis and other tools to conduct a comprehensive assessment of the strengths, weaknesses, opportunities and threats of U.S. venture capital funds, and formulated reasonable investment objectives, investment scope, investment methods, investment standards and other recommendations.

IPO consulting case: Shangpu Consulting provided IPO consulting services for a Chinese Internet company, helping it complete the listing process on NASDAQ in the United States, and improving its market visibility and market value. Using Porter's competitive strategy model, blue ocean strategy model, resource-based theory and other tools, Shangpu Consulting conducted a profound analysis of the competitive environment of China's Internet industry and the U.S. stock market, and found out the competitive advantages and disadvantages of Chinese Internet companies, as well as the opportunities and threats of the U.S. stock market. Shangpu Consulting also used SWOT analysis, PEST analysis and other tools to conduct a comprehensive assessment of the strengths, weaknesses, opportunities and threats of Chinese Internet companies, and formulated appropriate listing targets, listing time, listing prices, and listing methods for them. And other recommendations.