Purpose of 1. Competitor Research

The purpose of competitor research is to help companies make the right decisions in a competitive environment to improve competitiveness and profitability. Specifically, competitor research can help companies achieve the following objectives:

Identify competitors: Competitors include not only current direct competitors, but also potential indirect competitors and substitute providers. Through competitor research, companies can determine the scope and number of competitors they face, as well as their market share and position.

Competitor analysis: Competitor research can help companies gain insight into competitors' strategies, resources, capabilities, strengths, weaknesses, goals, motivations, behaviors, and performance to assess competitors' strengths and threats.

Predict competitors: Competitor research can help companies speculate on competitors' future plans, initiatives and reactions based on their historical data, current situation and trends, so as to prepare for response and prevention in advance.

Develop competitive strategies: Competitor research can help companies choose appropriate competitive strategies, such as offense, defense, cooperation, evasion, etc., according to the relative advantages and disadvantages of themselves and their competitors, as well as specific competitive actions, such as price, product, channel, Promotion, innovation, etc., so as to achieve competitive advantage and market growth.

Methods of 2. competitor research

There are several main methods of competitor research:

Desktop research: Desktop research is the collection and analysis of data and information about competitors using publicly available sources of information, such as official websites, annual reports, news, social media, industry reports, patents, legal documents, etc. The advantages of desktop research are low cost, fast speed, and wide range, but the disadvantage is that the information may be incomplete, inaccurate, not timely, and not in-depth.

Field investigation: Field investigation refers to observing and recording the production, sales, service and display of competitors by personally or entrusting a third party to the factories, stores, exhibitions and other places of competitors. The advantages of field visits are that the information is more intuitive, more real and more detailed, but the disadvantages are high cost, long time, narrow scope, and may be hindered or misled by competitors.

Customer interview: Customer interview refers to asking questions to existing or potential customers of competitors through telephone, network, face-to-face, etc., to understand their opinions and feedback on competitors' cognition, evaluation, preference, demand, satisfaction, loyalty, etc. The advantage of customer interview is that the information is more objective, more valuable and more targeted, but the disadvantage is that it is difficult to obtain the cooperation, trust and true answer of the customer, and may be affected by the subjectivity and emotion of the customer.

Competitor simulation: Competitor simulation refers to the simulation of competitors' decision-making processes and results by establishing mathematical models of competitors, such as game theory, decision trees, Markov chains, etc., to predict the future behavior and reactions of competitors. The advantage of competitor simulation is that the information is more scientific, systematic and forward-looking, but the disadvantage is that it is difficult to obtain the internal data and parameters of competitors and may be affected by the assumptions and limitations of the model.

Steps to 3. competitor research

The steps of competitor research generally include the following stages:

Determine research objectives: research objectives refer to the information and answers that enterprises hope to obtain through competitor research, which should be specific, clear, quantifiable and achievable. Research objectives should be based on the strategic needs and issues of the business, taking into account the importance and availability of competitors.

Selection of research methods: Research methods refer to the tools and techniques used by enterprises to collect and analyze competitor information, which should be effective, appropriate, feasible and economical. The research method should be selected according to the research objectives and the characteristics of competitors, taking into account the quality and quantity of information.

Collect research information: research information refers to the data and information about competitors obtained by enterprises from various sources and channels, which should be accurate, complete, timely and relevant. Research information should be collected based on changes in research methods and competitors, while considering the credibility and legitimacy of the information.

Analysis of research results: research results refer to the process and product of the enterprise's collation, induction, comparison, evaluation and inference of competitor information, which should be clear, orderly, based and valuable. The results of the survey should be analyzed according to the characteristics of the research objectives and competitors, taking into account the validity and reliability of the results.

Develop a research report: A research report is a document in which a company presents the results and recommendations of a competitor's research in writing to internal or external decision makers and stakeholders, and it should be concise, clear, logical, and persuasive. The research report should be based on the research objectives and the needs of the reader, taking into account the format and style of the report.

Application of 4. Competitor Research

The application of competitor research refers to the development and implementation of strategies and actions based on the results and recommendations of competitor research in order to improve their competitiveness and market position. The application of competitor research is mainly in the following ways:

Strategic innovation: Strategic innovation refers to the discovery of competitors' strategic loopholes and market gaps through competitor research, so as to create different, differentiated and valuable strategies from competitors, such as blue ocean strategy and disruptive innovation. Strategic innovation can help companies break the competitive landscape, open up new markets and customers, and achieve sustainable competitive advantage.

Strategic breakthrough: Strategic breakthrough refers to the enterprise through competitor research, to find the strategic weaknesses and market opportunities of competitors, so as to break through their own strategic limitations, to adopt more impact, challenging, risky strategy, such as aggressive competition, fast follow, strategic alliance and so on. Strategic breakthrough can help enterprises change the competitive situation, seize more market share and profit space, and achieve rapid competitive advantage.

5. Competitor Research Cases

In order to better illustrate the practical application and value of competitor research, this article will introduce the case of competitor research services provided by Shangpu Consulting for an automobile manufacturer.

A certain automobile manufacturer is an enterprise focusing on the high-end automobile market, and its products are famous for their high quality, high performance and high safety. However, in recent years, the enterprise has faced fierce competition from home and abroad, and its market share and profit margin have declined. In order to improve its competitive situation, the company decided to entrust Shangpu Consulting to conduct a competitor survey in order to find an effective competitive strategy.

Based on the needs of the company, Champu Consulting has identified the following objectives for its competitor research:

Identify the company's main competitors in the high-end automotive market, as well as their market share and position;

Analyze competitors' strategies, resources, capabilities, strengths, weaknesses, objectives, motivations, behaviors and performance;

Predict future plans, initiatives and reactions of competitors;

Develop effective competitive strategies and actions against competitors.

Based on the above objectives, Champ Consulting has selected the following methods for competitor research:

Desktop research: use open sources of information to collect and analyze competitors' basic information, financial reports, product introductions, market activities, news reports, etc;

Field investigation: observe and record the production, sales, service, display and other aspects of competitors by personally or entrusting a third party to competitors' factories, stores, exhibitions and other places;

Customer interviews: by telephone, Internet, face-to-face, etc., ask questions to existing or potential customers of competitors to understand their opinions and feedback on competitors' cognition, evaluation, preferences, needs, satisfaction, loyalty, etc;

Competitor simulation: by establishing a mathematical model of the competitor, simulating the decision-making process and results of the competitor, predicting the future behavior and reaction of the competitor.

According to the above method, Shangpu Consulting has collected a large amount of competitor information, and after sorting, summarizing, comparing, evaluating and inferring, the following competitor research results have been obtained:

The company has four main competitors in the high-end automobile market, namely Company A, Company B, Company C and Company D, of which Company A and Company B are internationally renowned automobile brands, and Company C and Company D are domestic emerging automobile brands;

Company A's strategy is based on leading technology, innovation-driven, and brand influence. Its resources and capabilities are very strong. Its advantage is that the product performance, quality, safety and intelligence are all very high. Its disadvantage is that the product price, fuel consumption and maintenance costs are all very high. Its goal is to maintain its leading position in the high-end automobile market. Its motivation is to maintain its brand reputation and loyalty, its behavior and performance are stable and excellent, and its future plan is to continue to invest in research and development and introduce more new products and technologies;

Company B's strategy is centered on elegant design, thoughtful service and brand culture, and its resources and capabilities are also very strong. Its advantage is that the appearance, comfort, personalization and service of the products are all very good, while its disadvantage is that the performance, quality, safety and intelligence of the products are not as good as those of Company A. Its goal is to improve its competitiveness in the high-end automobile market, and its motivation is to attract more young and female customers, its behavior and performance are very active and attractive, and its future plan is to strengthen the interaction with customers and create more brand stories and activities;

Company C's strategy is based on low price, wide channels and fast brand. Its resources and capabilities are relatively weak. Its advantage is that the price, fuel consumption and maintenance costs of the products are very low. Its disadvantage is that the performance, quality, safety and intelligence of the products are not high. Its goal is to enter the high-end automobile market. Its motive is to expand its market share and profit space, its behavior and performance are very radical and impactful. Its future plan is to increase investment in the high-end automobile market and introduce more low-cost and cost-effective products;

Company D's strategy is based on environmental protection and energy saving, leading innovation, and young brand. Its resources and capabilities are relatively balanced. Its advantage is that the fuel consumption, emission and intelligence of the products are all very low. Its disadvantage is that the performance, quality and safety of the products are not as good as those of Company A and Company B. Its goal is to occupy a place in the high-end automobile market. Its motivation is to satisfy more customers with environmental protection and technology, its behavior and performance are very active and creative. Its future plan is to accelerate the research and development of new energy and smart cars, and launch more green and smart products.

Based on the above results, Champ Consulting has developed the following competitive strategies and actions for the company's competitors:

For Company A, the company should adopt an evasive strategy to avoid direct competition with Company A, but look for market segments and customer needs that Company A ignores or cannot meet, such as the low-end market, the female market, the personalized market, etc., in order to achieve differentiation and positioning of the competitive advantage;

For Company B, the company should adopt a defensive strategy to prevent Company B from eroding its own market share and profit margin, by improving the performance, quality, safety and intelligence of its own products, as well as strengthening its own brand image, culture and loyalty, in order to achieve quality and brand competitive advantage;

For C company, the enterprise should take the offensive strategy, take the initiative to attack and challenge C company, by reducing the price of their products, fuel consumption and maintenance costs, as well as expand their sales channels and market activities, in order to achieve price and channel competitive advantage;

For D company, the enterprise should adopt cooperation strategy, establish strategic alliance or joint venture with D company, through sharing D company's environmental protection and energy saving and innovation leading technology and resources, and take advantage of D company's brand youth and market potential, so as to realize the competitive advantage of technology and market.

Champu Consulting compiled the above contents into a detailed competitor research report and submitted it to the decision makers and stakeholders of the enterprise, which was highly recognized and appreciated by them. According to the recommendations of Shangpu Consulting, the company formulated and implemented corresponding competitive strategies and actions, and successfully improved its competitiveness and market position in the high-end automobile market.