Purpose of Competitor Analysis

The purpose of competitor analysis is to understand your relative position in the market, identify your competitive strengths and weaknesses, and your competitors' strategic intentions and actions, so as to develop a competitive strategy that suits you and increase your market share and profitability. Competitor analysis can help companies achieve the following goals:

Find your opponent's way to success. By analyzing competitors' products, services, prices, channels, promotions, brands and other aspects, we can find out the core competitiveness of competitors and the key factors behind them, such as resources, capabilities, technology, innovation, culture and so on.

Analyze the competitive strategies of competitors. By analyzing the competitor's target market, target customer, value proposition, differentiation advantage, competitive advantage, competitive disadvantage, etc., we can understand the competitor's competitive positioning and competitive mode, as well as its impact and threat on the market.

Find the strategic weaknesses of competitors. By analyzing competitors' performance, finances, risks, problems, challenges, crises, etc., we can discover potential vulnerabilities and crisis points of competitors, as well as the changes and pressures they may face.

Analyze the consumer mind points occupied by competitors. By analyzing the competitor's brand image, brand reputation, brand loyalty, brand awareness, brand emotion, etc., we can understand the competitor's position and influence in the consumer's mind, as well as its relationship and interaction with consumers.

Look for differentiation possibilities. By analyzing the similarities and differences of competitors' products, services, prices, channels, promotions, brands, etc., we can find out the differences and advantages between ourselves and competitors, as well as the characteristics and values that can be highlighted and amplified.

Find your own breakthrough in the industry. By analyzing competitors' market share, market growth, market potential, market gaps, market demand, etc., find out the market segments and market opportunities that you can enter and expand, as well as the market demand that you can create and meet.

Methods of competitor analysis

There are several main methods of competitor analysis:

SWOT analysis. SWOT analysis is a method to assess the strengths (Strengths), weaknesses (Weaknesses), opportunities (Opportunities) and threats (Threats) of an enterprise, which can be used to analyze the internal and external environment of itself and its competitors, so as to find out its own competitive advantages and disadvantages, as well as the competitive advantages and disadvantages of competitors.

4P analysis. 4P analysis is a method of analyzing the product (Product), price (Price), channel (Place) and promotion (Promotion) of an enterprise, which can be used to analyze the marketing mix of itself and competitors, so as to find out the marketing advantages and disadvantages of itself and competitors, as well as the differences and similarities of marketing strategies.

Porter's Five Forces Model. Porter's five forces model is a method of analyzing the competitive structure and strength of the industry, which can be used to analyze the five competitive forces in the industry, namely, industrial competitors, potential entrants, substitutes, suppliers and buyers, so as to find out the competitive advantages and disadvantages of the industry, as well as the attractiveness and profitability of the industry.

Porter's value chain model. Porter's value chain model is a method to analyze the value creation process and value activities of an enterprise, which can be used to analyze the main value activities and auxiliary value activities of an enterprise, so as to find out the value advantages and disadvantages of the enterprise, as well as the differences and similarities of the value chain.

Porter diamond model. The Porter Diamond Model is a method of analyzing the competitive advantages of a country or region. It can be used to analyze the four decisive factors of a country or region, namely production factors, demand conditions, related and supporting industries, corporate strategy, structure and competition, and Two auxiliary factors, namely government and opportunities, so as to find out the competitive advantages and disadvantages of the country or region, as well as the differences and similarities of the competitive environment.

Steps for competitor analysis

The main steps of competitor analysis are as follows:

Identify competitors. There are many ways to identify competitors, which can be based on the similarity of products or services, the similarity of markets or regions, the similarity of customers or target groups, etc. Generally speaking, competitors can be divided into direct competitors and indirect competitors. Direct competitors refer to enterprises that provide the same or similar products or services, and indirect competitors refer to enterprises that provide different products or services that can replace or meet the same needs.

Collect competitor information. There are a variety of ways to collect competitor information, which can be obtained from both public and non-public sources. Public channels include competitors' official websites, social media, advertisements, news, reports, announcements, recruitment, exhibitions, forums, blogs, comments, reviews, etc. Non-public channels include competitor insiders, customers, suppliers, partners, industry experts, consulting agencies, research companies, spyware, etc. The content of collecting competitor information includes the competitor's basic situation, product or service, price, channel, promotion, brand, finance, performance, strategy, goal, problem, risk, opportunity, etc.

Analyze competitor information. There are many ways to analyze competitor information. According to different purposes and angles, different analysis tools and techniques, such as SWOT analysis, 4P analysis, Porter's five forces model, Porter's value chain model, Porter's diamond model, etc., can be used to sort out, classify, compare, evaluate, summarize and summarize competitor information, so as to obtain competitor's advantages and disadvantages, as well as competitor's strategies and actions.

Develop a competitive strategy. There are many ways to formulate competitive strategies. You can choose different competitive strategies according to the advantages and disadvantages of yourself and your competitors, as well as the needs and changes of the market, such as cost leadership strategies, differentiation strategies, centralization strategies, attack strategies, and defense Strategies, alliance strategies, adaptation strategies, etc., to improve your own competitiveness and market share, and reduce the competitiveness and market share of competitors.

Implement competitive strategies. There are many ways to implement the competition strategy. According to the selected competition strategy, specific action plans and implementation plans can be formulated, such as product or service improvement or innovation, price adjustment or discount, channel expansion or optimization, promotion increase or innovation, brand building or promotion, etc., to achieve the goals and effects of the competition strategy.

Monitor competitive strategy. There are many ways to monitor the competition strategy. According to the competition strategy implemented, reasonable evaluation indicators and evaluation methods can be set, such as market share, sales, profit margin, customer satisfaction, brand awareness, brand loyalty, etc. To detect and evaluate the implementation and results of the competition strategy, as well as the reaction and response of competitors, so as to adjust and optimize the competition strategy in time.

Tools for competitor analysis

The main tools for competitor analysis are the following:

Competitor Matrix. The competitor matrix is a tool used to compare the performance and level of oneself and competitors in different aspects, and can be used to analyze the strengths and weaknesses of oneself and competitors, as well as the differences and similarities of competitors. The competitor matrix can be in the form of a table or graph, and can be constructed according to different dimensions and indicators, such as product or service, price, channel, promotion, brand, finance, performance, strategy, objectives, etc.

Competitor map. A competitor map is a tool used to show the relative position and relationship between oneself and competitors in the market, and can be used to analyze the competitive positioning and competition mode of oneself and competitors, as well as the structure and dynamics of the market. Competitor maps can be in the form of two-dimensional or three-dimensional coordinate maps, which can be constructed according to different dimensions and indicators, such as market share, market growth, product or service quality, price, innovation, differentiation, etc.

Competitor profiling. Competitor profiling is a tool used to gain insight into the internal and external environment of competitors, which can be used to analyze competitors' resources, capabilities, technology, innovation, culture, values, vision, mission, goals, strategies, actions, problems, risks, opportunities, etc., so as to discover competitors' core competencies and potential vulnerabilities. Competitor profiling can be in the form of text or graphics, and can be constructed from different perspectives and levels, such as SWOT analysis, Porter value chain model, Porter diamond model, etc.

Case for competitor analysis

Competitor analysis of the following cases:

Competitor analysis in industry research by champ consulting. Shangpu Consulting is a consulting company specializing in industry research, market research, investment and financing consulting, IPO listing consulting and other services, and its main competitors in the field of industry research are the following:

McKinsey & Company. McKinsey & Company is one of the world's leading management consulting firms, and its strength in the field of industry research is its extensive industry experience and expertise, as well as its extensive industry network and resources, which can provide clients with in-depth industry insights and strategic advice. Its disadvantage in the field of industry research is the high price of its services, as well as the wide range of its services, which may lack pertinence and detail.

Bain & Co. Bain & Company is a world-renowned strategic consulting firm. Its strength in the field of industry research is its strong data analysis and modeling capabilities, as well as innovative methods and tools, which can provide customers with quantitative industry analysis and forecasting. Its disadvantage in the field of industry research is that the focus of its services is more on the strategic level than on the implementation level, and the customers it serves are more concentrated in large enterprises than small and medium-sized enterprises.

Roland Berger. Roland Berger is a management consulting company focusing on the Chinese market. Its advantage in the field of industry research is that it has deep insight and understanding of the Chinese market, as well as good cooperative relations with the Chinese government and enterprises, and can provide customers with customized Industry research and consulting services. Its disadvantages in the field of industry research are the narrow scope of its services, which are mainly concentrated in the Chinese market, and the quality and efficiency of its services may be affected by the uncertainty and complexity of the Chinese market.

Analysis of competitive strategy in the field of industry research by champ consulting. Based on the results of the competitor analysis, the competitive strategy of Champu Consulting in the field of industry research can be as follows:

Learn from McKinsey & Company's industry experience and expertise to enhance the depth and breadth of your industry research and the value and impact of your industry insights.

Learn from Bain's data analysis and modeling capabilities to improve the accuracy and reliability of your industry analysis, as well as the scientific and practical nature of your industry forecasts.

Learn from Roland Berger's insight and understanding of the Chinese market to improve the pertinence and adaptability of its own industry research, as well as the customization and satisfaction of industry consulting.

Strengthen its own differentiated advantages, such as providing cost-effective industry research services, and providing diversified industry research fields, such as investment and financing consulting, IPO listing consulting, etc., to meet the different needs of different customers.

Looking for their own breakthrough points, such as exploring new industry research markets, such as Southeast Asia, Africa, etc., and developing new industry research products, such as industry research reports, industry research databases, etc., to increase their market share and profitability.