Purpose of 1. Competitor Analysis

The purpose of competitor analysis is to help companies find their core competencies, increase their market share and profit margins, and enhance their customer loyalty in a competitive market environment. Through competitor analysis, companies can:

Identify their main competitors and understand their size, products, prices, quality, services, channels, brands, market share, cost structure, profitability, growth potential, strategic objectives, strengths and weaknesses;

Analyze the advantages and disadvantages of their own differentiation with competitors, determine their own market positioning and target customer base, and how to distinguish from competitors;

Predict the future movements and possible reactions of competitors, evaluate their own opportunities and threats, and how to deal with the challenges of competitors and seize the weaknesses of competitors;

Develop targeted marketing strategies and action plans to increase the attractiveness and value of your products and services, increase customer satisfaction and loyalty, and build your brand image and reputation.

2. methods of competitor analysis

There are a variety of methods of competitor analysis, the most commonly used being SWOT analysis and Porter's Five Forces analysis.

SWOT analysis is a simple and effective analytical tool that divides a competitor's situation into four areas: strengths (Strengths), weaknesses (Weaknesses), opportunities (Opportunities), and threats (Threats). Through the SWOT analysis of competitors, enterprises can clearly understand the advantages and disadvantages of themselves and competitors, as well as the opportunities and threats of the external environment, so as to formulate corresponding strategies and actions.

Porter's Five Forces Analysis is a more comprehensive and in-depth analytical tool that divides the situation of competitors into five areas: existing competitors in the industry (Rivalry among existing competitors), potential new entrants (Threat of new entrants), substitutes or services (Threat of substitute products or services), bargaining power of suppliers (Bargaining power of suppliers) and bargaining power of buyers (Bargaining power of buyers). Through the five forces analysis of competitors, enterprises can more accurately assess the degree of competition and profitability of their own industry, as well as their own competitive position and advantages, so as to formulate more reasonable and effective strategies and actions.

Steps to 3. competitor analysis

The steps of competitor analysis generally include the following:

Determine the objectives and scope of the analysis, I .e. which competitors to analyze and what information to analyze;

Collect information about competitors through a variety of channels and methods, such as market research, web search, industry reports, media reports, customer feedback, competitors' official websites and social media;

To analyze competitors' information, the above-mentioned SWOT analysis method or Porter's Five Forces analysis method can be used, or other suitable analysis tools, such as PEST analysis method (analysis of political, economic, social and technical factors), BCG matrix (analysis of product market share and market growth rate), value chain analysis method (analysis of competitors' value creation process and cost structure), etc;

Compare your own information with that of your competitors, find out your own strengths and weaknesses, as well as your competitors' opportunities and threats, determine your own market positioning and target customer base, and how to distinguish from your competitors;

Develop targeted marketing strategies and action plans, according to their own strengths and weaknesses, as well as competitors' opportunities and threats, to develop appropriate products, prices, channels, promotions, services and other strategies to improve their competitiveness and customer loyalty.

Case for 4. competitor analysis

Shangpu Consulting is a consulting company that specializes in providing competitor analysis services. It provides customers of different industries and sizes with a variety of competitor analysis solutions to help customers improve their market performance and customer satisfaction. The following are some specific examples of competitor analysis provided by Champ Consulting for its clients:

Case 1: An e-commerce platform company is facing fierce competition from giants such as Amazon and Alibaba, and wants to increase its market share and profit margin. Shangpu Consulting conducted a SWOT analysis of competitors for the company, and found that the company's advantage is that it has a rich product range and high-quality suppliers, its disadvantage is that it lacks brand awareness and loyal customers, its opportunity is that it can use social media and content marketing to attract and retain customers, and its threat is that competitors may reduce prices or improve service quality to seize the market. Based on this, Champ Consulting has developed the following marketing strategy and action plan for the company:

Product strategy: highlight the diversity and quality of their products, to provide customers with more choices and value, while increasing their own brand identity and differentiation characteristics, such as the use of unique packaging, labels, logo, etc;

Price strategy: the use of dynamic pricing and tiered pricing, according to different products, customers, channels and time periods, flexible adjustment of prices to attract different customer groups, while maintaining a certain profit margin;

Channel strategy: use their own websites and mobile applications, as well as cooperative third-party platforms, to expand their coverage and influence, while improving their channel efficiency and service quality, such as optimizing website design, navigation, search, payment and other functions, to provide fast, safe and convenient delivery and return services;

Promotion strategy: use social media and content marketing to improve their popularity and reputation, increase customer participation and loyalty, such as publishing interesting, useful and valuable content, such as product introduction, use experience, industry information, customer evaluation, etc., encourage customers to like, comment, share, forward, etc., and provide various incentive measures such as coupons, discounts, gifts, points, members, etc, attract and retain customers;

Service strategy: provide high-quality pre-sales, in-sales and after-sales services to improve customer satisfaction and trust, such as providing professional, friendly and timely consultation, answers and suggestions, and providing personalized, customized and value-added services, such as recommend suitable products, providing customized products and providing additional services according to customers' needs, preferences and feedback, At the same time, establish an effective customer relationship management system, follow up the situation of customers regularly, collect their opinions and suggestions, deal with customers' complaints and problems in time, and provide targeted improvement and compensation, etc.

By implementing these marketing strategies and action plans, the company has successfully increased its market share and profitability, as well as its customer loyalty. The company's customers said that they prefer to buy products in the company because they feel that the company's products are more in line with their needs and preferences, the price is more reasonable and fair, the channel is more convenient and fast, the promotion is more attractive and valuable, and the service is more professional and considerate.

Case 2: A hotel management company, facing competition from international brands such as Marriott and Hilton, wants to improve its brand awareness and customer satisfaction. Shangpu Consulting conducted a five-force analysis of competitors for the company, and found that the company's advantage is to have multiple different hotel brands, covering different market segments and customer groups. The disadvantage is to lack international experience and resources. The opportunity is to use its own local advantages and cultural characteristics. The threat is that competitors may expand their scale and influence, and improve their service level and customer loyalty. Based on this, Champ Consulting has developed the following marketing strategy and action plan for the company:

Product strategy: according to different hotel brands, to provide customers with different products and services, to meet different needs and budgets, while highlighting their own local advantages and cultural characteristics, such as the use of local ingredients, decoration, music, etc., to provide local tourism, entertainment, business and other services, so that customers feel the unique experience and value;

Price strategy: the use of value pricing and competitive pricing, according to different hotel brands, customers, seasons, events, etc., flexible adjustment of prices to reflect the value of their products and services, while maintaining a certain degree of competitiveness and reasonableness with competitors' prices;

Channel strategy: use their own websites and mobile applications, as well as cooperative third-party platforms, to expand their coverage and influence, while improving their own channel efficiency and service quality, such as optimizing website design, navigation, search, reservation, payment and other functions, providing fast, safe and convenient check-in and check-out services;

Promotion strategy: use social media and content marketing to improve their popularity and reputation, increase customer participation and loyalty, such as publishing interesting, useful and valuable content, such as hotel introduction, room display, customer evaluation, travel strategy, Cultural stories, etc., encourage customers to like, comment, share, forward, etc., and provide various incentive measures such as coupons, discounts, gifts, points, members, etc, attract and retain customers;

Service strategy: provide high-quality pre-sales, in-sales and after-sales services to improve customer satisfaction and trust, such as providing professional, friendly and timely consultation, answers and suggestions, and providing personalized, customized and value-added services, such as recommend suitable hotels, providing customized rooms and providing additional services according to customers' needs, preferences and feedback, and establishing an effective customer relationship management system, follow up the situation of customers regularly, collect their opinions and suggestions, deal with customers' complaints and problems in time, and provide targeted improvement and compensation, etc.

By implementing these marketing strategies and action plans, the company has succeeded in increasing its brand awareness and customer satisfaction, as well as enhancing its customer loyalty. The company's customers said that they prefer to stay in the company's hotels because they feel that the company's hotels are more in line with their needs and preferences, the prices are more reasonable and fair, the channels are more convenient and fast, the promotion is more attractive and valuable, and the service is more professional and considerate.