Steps and methods for 1. competitor analysis

The steps and methods of competitor analysis can be divided into the following four stages:

1. Identify competitors

Competitors are other enterprises that provide the same or similar products or services in the same market or industry, meet the same or similar customer needs, or affect the profits and market share of the enterprise. There are several ways to identify competitors:

-Based on market share or sales, select competitors that are equal to or larger than the size of the enterprise;

-Based on the similarity of products or services, select the competitors closest to the products or services provided by the enterprise;

-Based on customer perceptions or preferences, select competitors that overlap with the company's target market or target customer group;

-Based on the similarity of strategy, select competitors that are consistent with or opposite to the strategic goal or strategic direction of the enterprise.

2. Collect competitor information

Collecting competitor information refers to obtaining relevant data and information about competitors for analysis and comparison. There are several ways to collect competitor information:

-Use open sources of information, such as official websites, social media, news reports, industry reports, financial statements, market research, etc;

-Use private information sources, such as insiders, suppliers, distributors, customers, partners, industry associations, consulting agencies, etc;

-Use indirect sources of information, such as competitors' product or service experiences, reviews, feedback, complaints, word of mouth, etc.

3. Analyze competitor information

Analyzing competitor information refers to collating, summarizing, comparing and evaluating the collected competitor information in order to identify the characteristics and differences of competitors. There are several ways to analyze competitor information:

-SWOT analysis, I .e. analysis of competitors' strengths (Strengths), weaknesses (Weaknesses), opportunities (Opportunities) and threats (Threats);

-4P analysis, I .e. analysis of competitors' products (Product), prices (Price), channels (Place) and promotions (Promotion);

-5C analysis, I .e. analysis of competitors' customers (Customer), companies (Company), competitors (Competitor), partners (Collaborator) and environment (Context);

-5F analysis, which analyzes the future (Future), focus (Focus), function (Function), finance (Finance) and feedback (Feedback) of competitors.

4. Develop competitor strategies

Developing a competitor's strategy refers to determining the relative position and competitive advantage of an enterprise in the market based on the results of analyzing the competitor's information, as well as how to respond to the competitor's behavior and changes. There are several ways to develop a competitor's strategy:

-Porter's five-force model, which determines the competitive strategy of an enterprise based on the degree of competition in the industry, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitutes and the threat of new entrants;

-Competitive advantage matrix, that is, according to the cost advantage and differentiation advantage of enterprises, to determine the competitive strategy of enterprises;

-Competition map, that is, according to the relative position and performance of enterprises and competitors in the market, to determine the competitive strategy of enterprises;

-The competitive response matrix, which determines the competitive strategy of an enterprise based on the possible behavior of competitors and the possible response of the enterprise.

2. how to develop an effective marketing strategy based on competitor analysis

To develop an effective marketing strategy based on competitor analysis, you need to follow the following principles:

-Customer-centric, meet customer needs and expectations, provide valuable products or services, and build long-term customer relationships;

-Guided by differentiation, highlight the core competitiveness of enterprises, create a unique brand image, different from competitors;

-With innovation as the driving force, continuously improve and optimize the quality and performance of products or services, develop new products or services, and seize market opportunities;

-Supported by collaboration, establish effective cooperative relations with suppliers, distributors, customers, partners, etc., share resources and information, and achieve a win-win situation;

-Characterized by flexibility, timely adjustment and optimization of marketing strategies according to market changes and competitors' behavior, and response to uncertain risks and opportunities.

Case for 3. competitor analysis

To better illustrate the value and effectiveness of competitor analysis, this article will introduce a case study of competitor analysis provided by Champ Consulting for an e-commerce platform. The e-commerce platform mainly provides online sales of fashion products such as clothing, footwear, and accessories, and the target market is young female consumers. The main competitors of the platform are the following:

-Company A is an internationally renowned e-commerce platform that provides various types of goods, including fashion goods. It has a large customer base and market share, and has strong brand influence and financial strength. However, it is not prominent in the brand image and differentiation of fashion goods, and lacks exclusive services and personalized recommend for young female consumers;

-Company B is an e-commerce platform focusing on fashion goods, providing a variety of styles and brands of clothing, footwear, accessories, etc., with high brand awareness and loyalty, a strong sense of fashion and innovation, but not competitive in terms of price, but also facing the pressure of inventory and logistics;

-C company, an emerging e-commerce platform for fashion goods, provides customized clothing, footwear, accessories, etc., has high user satisfaction and reputation, and has strong differentiation and personalized advantages. However, it does not have advantages in scale and cost, and lacks a stable supply chain and channels.

Champu Consulting provides the following competitor analysis services for the e-commerce platform:

-By collecting and analyzing competitors' information, Shangpu Consulting helps the e-commerce platform identify its relative position and competitive advantage in the market, that is, providing fashionable, affordable and convenient fashion products to meet the needs and preferences of young female consumers;

-By formulating competitors' strategies, Shangpu Consulting helped the e-commerce platform determine its own marketing strategy, that is, to enhance its market competitiveness through the following aspects:

In terms of products, the e-commerce platform should maintain the characteristics of fashion and affordable, while adding more brands and styles to meet different customer needs and preferences;

In terms of price, the e-commerce platform should maintain price competitiveness while offering more offers and discounts to attract and retain more customers;

In terms of channels, the e-commerce platform should use its own website and mobile applications, as well as social media and Internet celebrities, to expand its coverage and influence, as well as improve its brand awareness and loyalty;

In terms of promotion, the e-commerce platform should provide more exclusive services and personalized recommend to increase customer satisfaction and word-of-mouth, while providing more opportunities for interaction and participation to increase customer stickiness and activity.

The competitor analysis service of Shangpu Consulting Company provides valuable insights and suggestions for the e-commerce platform, helping the e-commerce platform to improve its market competitiveness and marketing effect.