Purpose of Competitor Research

Competitor research refers to the process of collecting, analyzing and evaluating the relevant information of competitors to understand the basic situation, strategic intention, core competence, market performance, development trend, etc. of competitors, so as to provide reference and basis for the strategic decision-making of enterprises. The main purpose of competitor research is the following:

Identifying competitors: Through competitor research, it is possible to identify the direct competitors and potential competitors faced by the enterprise, as well as their size, status, characteristics, etc., so as to determine the scope of competition and competitive priority of the enterprise.

Understand competitors: Through competitor research, you can have an in-depth understanding of competitors' strategic goals, organizational structure, product mix, price strategy, channel layout, promotion methods, customer groups, brand image, financial status, innovation capabilities, risk factors, etc. Reveal the strengths and weaknesses of competitors, as well as their behavior patterns and logic.

Predict competitors: Through competitor research, we can predict the development trend, market share, competitive strategy, response measures, etc. of competitors based on their historical data, current situation analysis and future planning, so as to prepare for the response in advance and seize the opportunity.

Compare competitors: Through competitor research, you can compare your products, services, brands, marketing, etc. with your competitors to find out your strengths and weaknesses, as well as the degree of differentiation and homogenization, so as to determine your own Market positioning and competitive advantage.

Learning from competitors: through competitor research, we can learn from and learn from the successful experience and failure lessons of competitors, absorb and introduce the advanced technology and management methods of competitors, innovate and improve our products, services, brands, marketing and other aspects, so as to enhance our market competitiveness.

Content of competitor research

The content of competitor research refers to the information that needs to be collected and analyzed in the process of competitor research, which generally includes the following aspects:

Basic information: competitor's name, address, telephone number, website, legal representative, registered capital, establishment time, business scope, organizational structure, shareholder composition, key personnel, branches, etc.

Strategic information: competitor's mission, vision, values, strategic objectives, strategic direction, strategic measures, strategic assessment, etc.

Product information: competitors' product types, product characteristics, product quality, product functions, product performance, product design, product innovation, product life cycle, product portfolio, product pricing, product promotion, product packaging, product services, etc.

Market information: competitor's market positioning, market share, market growth, market distribution, market penetration, market segmentation, market entry, market exit, market demand, market forecast, etc.

Customer information: competitor's target customers, existing customers, potential customers, loyal customers, lost customers, customer satisfaction, customer loyalty, customer needs, customer preferences, customer behavior, customer feedback, etc.

Channel information: competitor's sales channel, distribution channel, logistics channel, service channel, channel mode, channel structure, channel coverage, channel management, channel efficiency, channel cooperation, channel conflict, etc.

Promotion information: competitor's brand image, brand positioning, brand proposition, brand value, brand awareness, brand reputation, brand loyalty, brand communication, brand innovation, brand protection, etc.

Financial information: competitor's balance sheet, profit statement, cash flow statement, financial ratio, financial position, financial risk, financial budget, financial plan, financial objectives, financial analysis, etc.

Innovation information: competitor's innovation concept, innovation strategy, innovation ability, innovation resources, innovation mechanism, innovation project, innovation achievement, innovation evaluation, innovation risk, innovation trend, etc.

Risk information: competitor's internal risk, external risk, market risk, financial risk, technical risk, legal risk, policy risk, competitive risk, moral risk, crisis risk, etc.

Methodology for competitor research

The method of competitor research refers to the technical means of information collection and analysis used in the process of competitor research, which generally includes the following:

Literature method: access to basic information, strategic information, product information, financial information, innovation information, etc. of competitors by consulting their official websites, annual reports, announcements, news, recruitment, patents, trademarks, certificates, awards, papers, periodicals, books, newspapers, magazines and other public literature.

Interview method: Through face-to-face or telephone interviews with competitors' employees, customers, suppliers, partners, industry experts, media professionals, government officials, industry associations, research institutions and other relevant personnel, obtain competitors' market information, customer information, channel information, promotion information, risk information, etc.

Observation method: observe competitors' product display, service quality, marketing methods, customer response, market dynamics, etc. by visiting competitors' production bases, sales outlets, exhibition sites, event venues, etc., or through the Internet, television, radio, newspapers and other media.

Experimental method: By purchasing competitors' products or services, or by simulating competitors' market behavior, actual testing, evaluation, comparison, feedback, etc., to understand competitors' product performance, service level, price strategy, customer satisfaction, etc.

Analysis method: through the use of SWOT analysis, Porter's five forces analysis, value chain analysis, core competitiveness analysis, competitive advantage analysis, market share analysis, market growth analysis, market segmentation analysis, market positioning analysis, market demand analysis, market forecast analysis and other theories and tools, the information of competitors is systematically organized, summarized, analyzed and evaluated, this leads to competitors' strengths and weaknesses, opportunities and threats, strategies and tactics, behaviors and trends.

Steps for competitor research

The steps of competitor research refer to the logical sequence that needs to be followed in the process of competitor research, which generally includes the following steps:

Determine research objectives: clarify the purpose, scope, content, requirements, standards, etc. of competitor research, formulate research plans and programs, allocate research tasks and resources, determine research time and budget, etc.

Identify competitors: according to the market positioning and competitive advantage of the enterprise, determine the industry and market in which the enterprise is located, analyze the structure and laws of the industry, identify the direct competitors and potential competitors of the enterprise, as well as their size, status and characteristics.

Collecting competitor information: according to the research objectives and contents, select the appropriate research methods, such as literature method, interview method, observation method, experimental method, etc., from various channels and ways to collect the basic information of competitors, strategic information, product information, market information, customer information, channel information, promotion information, financial information, innovation information, risk information, etc.

Analyze competitor information: according to the research target and content, use reasonable analysis methods, such as SWOT analysis, Porter's five forces analysis, value chain analysis, core competitiveness analysis, competitive advantage analysis, market share analysis, market growth analysis, market segmentation analysis, market positioning analysis, market demand analysis, market forecast analysis, etc., to systematically organize, summarize, analyze and evaluate competitor information, this leads to competitors' strengths and weaknesses, opportunities and threats, strategies and tactics, behaviors and trends.

Preparation of competitor reports: according to the research objectives and contents, write competitor reports, including research background, research objectives, research methods, research results, research analysis, research suggestions, research summaries, etc., in the form of text, charts, data, etc., to clearly, accurately and completely present competitor information and analysis.

Formulate competitor response strategies: According to competitor reports, combined with the company's own situation and market environment, formulate response strategies for different competitors, including competitive strategy, product strategy, price strategy, channel strategy, promotion strategy, innovation strategy, and risk strategy. Wait to enhance the company's market competitiveness and profitability.

Considerations for Competitor Research

Considerations for competitor research refer to the principles and norms that need to be observed in the process of competitor research, which generally include the following:

Follow laws and regulations: Competitor research should be conducted within the scope of legal compliance, and must not infringe on competitors' intellectual property rights, trade secrets, privacy rights, etc., and must not use illegal or unethical means, such as theft, eavesdropping, bribery, threats, Defamation, etc., to obtain competitors' information.

Maintain objectivity and fairness: Competitor research should be based on facts, and should not be subjective, biased, exaggerated, distorted, etc., to collect and analyze competitors' information, and should not be based on personal or team emotions, prejudices, interests, etc., Affect the evaluation and judgment of competitors.

Pay attention to the quality of information: competitor research should ensure the authenticity, accuracy, completeness, timeliness, relevance, etc. of the information, shall not use outdated, wrong, false, irrelevant information, analysis and evaluation of competitors, not because of the quality of information, leading to misunderstandings and mistakes of competitors.

Pay attention to information security: Competitor research should protect their own information, not to disclose to competitors or third parties, not to let competitors or third parties know their own research purposes, content, methods, results, etc., not because of information security issues, Cause your own competitive disadvantage or risk.

Focus on information updates: Competitor research should keep an eye on the latest developments and changes in competitors, update competitors' information in a timely manner, and must not use outdated, outdated, or lagging information to analyze and evaluate competitors, and must not because of information updates., Missing competitive opportunities or responding to challenges.

Pay attention to the application of information: the ultimate goal of competitor research is to enhance the market competitiveness and profitability of enterprises. Therefore, the information and analysis of competitor research should be transformed into specific actions and measures, which should not only stay at the level of reports and documents, and should not waste competitive resources or lose competitive effect because of the application of information.

Champ Consulting's competitor research case

Shangpu Consulting is a consulting company specializing in industry research, market research, investment and financing consulting, IPO listing consulting and other fields. It has many years of consulting experience and many successful cases to provide customers with high-quality consulting services and solutions. In terms of competitor research, Shangpu Consulting also has a wealth of practice and results, the following are some typical competitor research cases:

A household appliance enterprise competitor survey: the enterprise is a professional production and sales of air conditioners, refrigerators, washing machines and other household appliances, facing fierce market competition, hope to understand their competitive position and competitive advantage in the household appliance industry, as well as the strategy and strategy of competitors, so as to formulate effective competitive countermeasures. Champu Consulting conducted a comprehensive competitor research for the company, including identifying competitors, collecting competitor information, analyzing competitor information, preparing competitor reports, and formulating competitor response strategies, and provided the company with the following suggestions:

In terms of products, the company should strengthen product innovation and differentiation, improve product functions, performance, design, quality, etc., meet the needs and preferences of different customers, increase the added value and attractiveness of products, and increase product market share and Profit margin.

In terms of price, the company should adopt a flexible pricing strategy to determine a reasonable price range and price level based on factors such as product cost, value, competitiveness, market demand, and competitors' prices, so as to optimize and maximize prices and increase price competitiveness and profit margins.

In terms of channels, the company should expand multiple channel models, including online and offline channels, such as e-commerce platforms, specialty stores, chain stores, distributors, agents, etc., to achieve channel coverage and penetration, and increase channel efficiency And effectiveness, improve channel competitiveness and cooperation.

In terms of promotion, the company should strengthen brand building and marketing activities, enhance brand awareness, reputation, loyalty, etc., and spread the brand's image, proposition, value, etc. through advertising, public relations, activities, social media, etc., to increase the brand The influence and attractiveness of the brand improve the competitiveness and protection of the brand.

A medical device company competitor survey: The company is a professional manufacturer and sales of medical device products, facing industry changes and competition, hoping to understand their competitive position and competitive advantage in the medical device industry through competitor research, as well as The competitor's strategy and strategy, so as to formulate effective competitive countermeasures. Champu Consulting conducted a comprehensive competitor research for the company, including identifying competitors, collecting competitor information, analyzing competitor information, preparing competitor reports, and formulating competitor response strategies, and provided the company with the following suggestions:

In terms of products, the company should pay attention to the quality and safety of products, comply with national and industry standards and specifications, and improve the reputation and reputation of products by obtaining relevant certificates, certifications, awards, etc., to meet customer needs and expectations, and increase products Market share and profit margin.

In terms of price, the enterprise should adopt a reasonable price strategy, according to the cost of the product, value, competitiveness, market demand, competitors' prices and other factors, to determine a reasonable price range and price level, to achieve price optimization and maximization, increase price competitiveness and profit margins.

In terms of channels, the company should establish stable channel cooperation, establish long-term cooperative relationships with channel partners such as hospitals, clinics, pharmacies, and insurance companies, provide high-quality products and services, achieve channel coverage and penetration, and increase channels. Efficiency and effectiveness, improve channel competitiveness and cooperation.

In terms of promotion, the company should strengthen professional promotion activities, show the characteristics, advantages, and effects of products by participating in industry exhibitions, forums, seminars, etc., and communicate and cooperate with industry experts, scholars, and media to spread The knowledge, technology, value, etc. of the product increase the influence and attractiveness of the product, and improve the competitiveness and protection of the product.

Research on competitors of an education and training enterprise: the enterprise is a professional education and training enterprise providing English training, overseas study consulting, immigration services, etc., facing the saturation and competition of the market, hoping to understand its competitive position and competitive advantage in the education and training industry, as well as the strategies and strategies of competitors, so as to formulate effective competitive countermeasures. Champu Consulting conducted a comprehensive competitor research for the enterprise, including identifying competitors, collecting competitor information, analyzing competitor information, preparing competitor reports, formulating competitor response strategies, etc., and provided the following suggestions for the enterprise:

In terms of products, the company should pay attention to the quality and effect of the products, provide English training, study abroad consulting, immigration services, etc. that meet the needs and levels of customers, and improve the reputation and reputation of the products by obtaining relevant certificates, certifications, awards, etc. Satisfy customer expectations and satisfaction, and increase product market share and profit margins.

In terms of price, the enterprise should adopt a reasonable price strategy, according to the cost of the product, value, competitiveness, market demand, competitors' prices and other factors, to determine a reasonable price range and price level, to achieve price optimization and maximization, increase price competitiveness and profit margins.

In terms of channels, the enterprise should use a variety of channels, including online and offline channels, such as websites, APP, WeChat, microblog, QQ, telephone, SMS, email, leaflets, posters, advertisements, etc., to realize the coverage and penetration of channels, increase the efficiency and effect of channels, and improve the competitiveness and cooperation of channels.

In terms of promotion, the company should strengthen brand building and marketing activities, improve brand awareness, reputation, loyalty, etc., through participating in industry exhibitions, forums, seminars, etc., to show product characteristics, advantages, effects, etc., and industry Communicate and cooperate with experts, scholars, media, etc., spread the knowledge, technology, value, etc. of the product, and increase the influence and attractiveness of the product, improve the competitiveness and protection of products.