Competitor Analysis Concepts and Definitions

Competitor analysis is a strategic tool used to assess a company's position and advantage in the market, as well as to identify and respond to competitive threats and opportunities. The core questions of competitor analysis are: Who are our competitors? What are they doing? What are their strengths and weaknesses? What are their strategic intentions and objectives? What are their implications for us? How should we respond to them?

The purpose of competitor analysis is:

Understand the competitive environment and competitive situation, master the basic information, scale, structure, products, services, quality, price, cost, channels, promotion, technology, innovation, brand, reputation, culture, organization, finance, strategy and other aspects of competitors;

Analyze the competitive advantages and disadvantages of competitors, evaluate the competitiveness and market share of competitors, identify the strategic intentions and objectives of competitors, and predict the future trends and behaviors of competitors;

Look for the strategic weaknesses and loopholes of competitors, find the potential threats and opportunities of competitors, formulate corresponding competitive strategies and action plans, and improve their competitive advantages and market position;

Learn from the successful experience and lessons of competitors, learn from the excellent practices and innovative ideas of competitors, improve their own products, services, quality, technology, innovation, brand and other aspects of the level, enhance their core competitiveness.

Competitor analysis methods and procedures

The methods and steps of competitor analysis can be flexibly adjusted and combined according to different purposes and needs, but generally include the following aspects:

Identify competitors: Competitors are companies that provide the same or similar products or services in the same market or market segment, meet the same or similar customer needs, and have the same or similar competitive objectives. There are many ways to identify competitors, for example, according to the similarity, substitution and complementarity of products or services, according to the commonality, overlap and intersection of the market, according to the customer's cognition, preference and choice, and according to the strategy, behavior and reaction of competitors. The purpose of identifying competitors is to identify the most direct, important and influential competitors for focused analysis and response.

Collecting competitor information: Competitor information refers to all kinds of data, facts, opinions, evaluations, etc. related to competitors, which is the basis and basis for competitor analysis. There are many ways to collect competitor information, for example, using public information sources, such as the Internet, media, reports, announcements, exhibitions, conferences, forums, etc.; using private information sources, such as insiders, suppliers, distributors, partners, customers, industry experts, consulting agencies, etc.; using independent information sources, such as field trips, secret shopping, simulation tests, questionnaires, interviews, focus groups, etc. The purpose of collecting competitor information is to obtain as comprehensive, accurate, timely and effective competitor information as possible for in-depth competitor analysis.

Analysis of competitor information: Competitor information analysis refers to the collation, induction, comparison, evaluation, interpretation, inference, etc. of the collected competitor information to reveal the characteristics, strengths and weaknesses, strategies, trends, influences, etc. There are many ways to analyze competitor information, for example, using the theory and model of competitor analysis, such as Porter's five forces model, competitive strategy framework, competitor map, competitor matrix, SWOT analysis, VRIO analysis, etc.; Using competitor analysis techniques and tools, such as data analysis, statistical analysis, trend analysis, causal analysis, hypothesis testing, sensitivity analysis, scenario analysis, etc. The purpose of analyzing competitor information is to derive valuable competitor insights andConclusionin order to develop effective competitor response strategies and action plans.

Develop competitor response strategies: Competitor response strategies are based on the results of competitor analysis to develop strategies and actions against competitors in order to achieve their competitive goals and advantages. There are many ways to formulate competitors' coping strategies. For example, according to the strengths and weaknesses of competitors, choose different competitive postures such as attack, defense, cooperation, and avoidance; according to competitors' strategies, choose price, quality, service, innovation, and brand. Different competitive factors such as initiative, passive, prevention, and response are selected according to the trends of competitors. The purpose of formulating a competitor's coping strategy is to formulate a competitive plan and measures that meet its own advantages and market needs, so as to achieve the goal of restraining competitors, improving itself and winning the market.

Champ Consulting's competitor analysis capabilities and case studies

Shangpu Consulting is a professional market research and investment consulting agency with rich experience in industry research, market segmentation and user behavior research, channel model research, competitor research, market entry research, consumer research, investment decision evaluation, IPO market segmentation research, feasibility study of fund-raising projects, business financing plans and other segmentation consulting services. Champu Consulting has the following professional capabilities and advantages in competitor analysis:

Has a professional competitor analysis team, composed of senior industry analysts, market analysts, data analysts, competitive intelligence experts, etc., has a wealth of theoretical knowledge and practical experience in competitor analysis, can provide customers with comprehensive, in-depth, accurate and timely competitor analysis services;

Have professional competitor analysis methods and tools, according to the different needs and objectives of customers, flexible use of a variety of competitor analysis methods and tools, such as desktop research, market research, competitive intelligence, data analysis, etc., to provide customers with quantitative, qualitative, comprehensive, forward-looking competitor analysis results;

Have professional competitor analysis reports and recommendations, be able to customize and optimize competitor analysis reports and recommendations according to the customer's different industries and markets, and present the main findings of competitor analysis in a clear, concise and convincing manner,Conclusionand recommendations to provide customers with valuable competitor insights and strategic guidance.

The following are some examples of Champ Consulting's competitor analysis, demonstrating the effectiveness and value of Champ Consulting's competitor analysis:

Case 1: For a leading online education platform in China, an analysis of its main competitors in the domestic market was carried out, including the competitor's market situation, product situation, marketing situation, technical situation, financial situation, etc. Through desktop research, market research, competitive intelligence and data analysis, Shangpu Consulting provides customers with a comprehensive analysis of competitors, as well as differentiated competitive strategy recommendations for different competitors. Through the competitor analysis of Shangpu Consulting, customers have effectively improved their competitive advantage and market share in the domestic market.

Case 2: For an internationally renowned fast-food company, conducted an analysis of its potential competitors in emerging markets, including the basic situation of competitors, market conditions, product conditions, and financial conditions. Through desktop research, market research, competitive intelligence and data analysis, Shangpu Consulting provides customers with comprehensive evaluation reports of competitors and entry strategy suggestions for different markets. Clients effectively avoid competitive risks and market barriers in emerging markets through the competitor analysis of Champ Consulting.

Case 3: For an emerging domestic bike-sharing company, an analysis of its innovative competitors in the domestic market was carried out, including the competitor's technology, innovation, users, trends, etc. Through desktop research, market research, competitive intelligence and data analysis methods, Shangpu Consulting provides customers with competitor innovation analysis reports, as well as innovative strategy recommendations for different competitors. Customers through the Shangpu consulting competitor analysis, effectively improve their innovation ability and market competitiveness.