1. focus too much on competitors and ignore customers and markets

The purpose of competitor research is to help companies better understand and respond to the competitive environment, not simply to understand competitors. Therefore, competitor research can not be separated from the background of customers and the market, otherwise it may lead to enterprises into self-centered thinking, ignoring the needs of customers and changes in the market. For example, when investigating competitors' products and services, some companies only focus on features and price comparisons, without taking into account customer preferences and satisfaction, or without paying attention to market trends and potential, thus missing out on innovation and expansion opportunities.

In order to avoid this pit, when conducting competitor research, companies should analyze the strengths and weaknesses of competitors, as well as the impact on customers and the market, from the perspective of customers and the market. At the same time, enterprises should also pay attention to their own advantages and disadvantages, as well as the impact on customers and the market, so as to find out their own differentiation and competitiveness. Champ Consulting used this approach when conducting a competitor survey for an automaker. Shangpu Consulting not only analyzes the competitor's product line, market share, cost structure, marketing strategy, etc., but also analyzes the customer's purchasing behavior, preference, satisfaction, loyalty, etc., as well as the market's size, growth, distribution, segmentation, forecast, etc. Through such analysis, Shangpu Consulting has helped automakers discover their own advantages in terms of brand, quality, service, innovation, etc., as well as their disadvantages in terms of price, channel, region, market segment, etc., thus formulating targeted competition strategies and improving market competitiveness.

2. selection of inappropriate competitors, lack of pertinence and representation

Competitor research is conducted on other companies that compete directly or indirectly with them in the same market or industry. However, not all competitors are worth investigating, and not all competitors can reflect the true situation of the market. If a company chooses an inappropriate competitor, it may lead to a lack of pertinence and representativeness in the results of the survey, and it cannot effectively guide the company's decisions and actions. For example, when investigating competitors, some companies focus only on market leaders or challengers and ignore market followers or newcomers, thus ignoring the diversity and dynamics of the market. Or some enterprises in the research of competitors, only focus on their own country or region, while ignoring the international or cross-regional competitors, thus ignoring the global and integrated market.

In order to avoid this pit, when conducting competitor research, companies should select suitable competitors according to their own goals and strategies to ensure that the research objects are sufficiently targeted and representative. At the same time, companies should also regularly update the list of competitors according to market changes to ensure that the research objects have sufficient timeliness and flexibility. Champ Consulting used this approach when conducting a competitor survey for an e-commerce platform. According to the target market, target customers, target products and target channels of the e-commerce platform, Shangpu Consulting has selected five competitors with whom it has direct or indirect competition, namely, two domestic leaders, one domestic newcomer, one international leader and one international newcomer. Through this choice, Shangpu Consulting ensures that the research objects can reflect the competition situation of different levels, different subdivisions and different regions of the market, thus helping the e-commerce platform to formulate targeted and representative competition strategies and improve the market competitiveness.

3. the use of inaccurate or outdated data, affecting the reliability of the analysis

Competitor research data is the basis of analysis, it can help enterprises to understand the current situation of competitors, development, trends, problems, opportunities and other aspects. However, the data surveyed by competitors is often not easy to obtain, or there are certain errors and lags, if the enterprise uses inaccurate or outdated data, may lead to the analysis of the results of distortion and failure. For example, some companies rely only on publicly available financial reports when investigating competitors' financial data, without taking into account the rules for the preparation of financial reports, adjustment projects, audit opinions, etc., thus affecting the accuracy and comparability of the data. Or some companies use only past historical data when investigating competitors' market data, without taking into account market changes and forecasts, thus affecting the timeliness and forward-looking nature of the data.

To avoid this pit, companies should use accurate and up-to-date data as much as possible when conducting competitor research to ensure that the results of the analysis are reliable and valid. At the same time, enterprises should also process and adjust the data reasonably according to the source, quality, scope, time and other factors of the data to ensure that the results of the analysis are consistent and applicable. Champ Consulting used this approach when conducting a competitor survey for a pharmaceutical company. Champ Consulting not only uses public data, such as financial reports, annual reports, news reports, industry reports, etc., but also uses private data, such as patent databases, clinical trial databases, market research reports, expert interviews, etc., to obtain more comprehensive and in-depth data. Through such data, Shangpu Consulting helps pharmaceutical companies analyze competitors' R & D capabilities, product pipelines, market share, marketing strategies, etc., so as to formulate reliable and effective competitive strategies and improve market competitiveness.

4. lack of systematic and in-depth analysis, only the comparison of the surface

The analysis of competitor research is the core of research, which can help enterprises to reveal the characteristics of competitors, strengths and weaknesses, strategies, trends, threats, opportunities and so on. However, the analysis of competitor research is often not easy to carry out, or there is a certain degree of subjective and one-sided, if the lack of systematic and in-depth analysis, may lead to the lack of value and significance of the results of the research. For example, when analyzing competitors, some enterprises only make simple numerical comparisons, such as income, profit, market share, etc., but do not carry out in-depth causal analysis, such as why competitors have such performance, how competitors achieve such performance, and how competitors maintain or change such performance, thus lacking real understanding and insight into competitors. Or some enterprises in the analysis of competitors, only from their own point of view, such as their own goals, strategies, capabilities, etc., but not from the perspective of competitors, such as competitors, strategies, capabilities, etc., thus lacking a comprehensive and objective evaluation of competitors.

In order to avoid this pit, companies should use systematic and in-depth analysis methods when conducting competitor research to ensure that the results of the research are valuable and meaningful. At the same time, companies should also conduct a comprehensive and objective analysis of competitors from multiple perspectives and dimensions, such as customers, markets, products, channels, finance, organization, culture, innovation, etc., to ensure that the results of the survey have breadth and depth. Champ Consulting used this approach when conducting a competitor survey for an education and training institution. Champ Consulting uses SWOT analysis, Porter's five-force analysis, value chain analysis, etc. to conduct a systematic and in-depth analysis of competitors, thus revealing their strengths and weaknesses, opportunities and threats, competitiveness and profitability, value creation and value capture. Through such analysis, Shangpu Consulting helps education and training institutions to find their own advantages in terms of course content, teaching quality, teaching staff, service level, and disadvantages in terms of price strategy, channel expansion, brand building, etc., thus formulating valuable and meaningful competitive strategies to improve market competitiveness.

5. fail to translate findings into action, lack of execution

The goal of competitor research is to help companies develop and implement effective competitive strategies, not to simply collect and analyze data. Therefore, the results of competitor research must be able to be translated into action, otherwise the results of the research may be useless and wasteful. For example, after completing the research on competitors, some enterprises only put the research report in the drawer or only discuss it at the meeting, but did not implement the research results into specific action plans, assign them to specific responsible persons, and monitor the specific implementation effect, thus causing the research results to have no impact or change. Or some enterprises in the completion of competitor research, only copy the practice of competitors, or only make some superficial improvements, but not according to their own actual situation, to create their own competitive advantage, resulting in the results of the survey did not produce any differences and advantages.

In order to avoid this pit, when conducting competitor research, companies should translate the research results into actions to ensure that the research results have execution and effectiveness. At the same time, enterprises should also create their own competitiveness and advantages according to their own goals and strategies to ensure that the results of the survey are innovative and competitive. Champ Consulting used this approach when conducting a competitor survey for a restaurant chain. Shangpu Consulting not only provides research reports, but also provides action plans, including specific goals, strategies, measures, indicators, time, responsible persons, etc., as well as regular follow-up and evaluation to ensure the implementation and effectiveness of research results. Through such an action plan, Shangpu Consulting has helped catering chain companies achieve breakthroughs and advantages in product innovation, service improvement, channel expansion, and brand building, thereby improving market competitiveness.

Conclusion

Competitor research is an important part of corporate strategic analysis, which can help companies understand the market environment, discover competitive advantages, and formulate effective competitive strategies. However, there are some common misconceptions and difficulties in competitor research, which, if not paid attention to, may lead to bias and invalidation of research results. Starting from the practical experience of Shangpu Consulting, this paper summarizes the five pits that need to be avoided in competitor research, namely: excessive attention to competitors, ignoring customers and the market; choosing inappropriate competitors, lacking pertinence and representativeness; using inaccurate or outdated data, affecting the reliability of analysis; lack of systematic and in-depth analysis, only staying at superficial comparison; no research results into action, lack of execution. This article also provides some solutions and recommendations, hoping to help companies improve the effectiveness and value of competitor research.