The Importance of 1. Competitor Research

In the market economy, competition is inevitable, enterprises want to survive and develop in the fierce competition, we must understand their competitors, find out their strengths and weaknesses, develop appropriate competitive strategies, in order to win more customers and profits. Competitor research is an effective tool that can help companies achieve the following goals:

Identify and define competitors: Competitors include not only direct competitors, but also potential competitors, substitute competitors, supplier competitors, and buyer competitors. Through competitor research, you can determine the scope and type of competitors you face, as well as their size, status, goals and motivations.

Analyze and evaluate the strengths and weaknesses of competitors: Through competitor research, you can collect and analyze various information about competitors, such as corporate overview, development history, competitive strategy, core competitiveness, corporate culture, brand performance, product strategy, channel strategy, Price strategy, promotion strategy, etc. Through comparison and evaluation, we can find out the advantages and disadvantages of competitors, as well as their own advantages and disadvantages relative to competitors, so as to determine their competitive position and differentiation advantages.

Predict and respond to the dynamics and behavior of competitors: Through competitor research, you can monitor and track the dynamics and behavior of competitors, such as the launch of new products, market expansion, price changes, promotional activities, partners, investment projects, etc. By analyzing the dynamics and behavior of competitors, you can predict the intentions and goals of competitors, as well as their impact and threats, so as to make timely responses and adjustments to seize opportunities and opportunities.

Methods and procedures for 2. competitor research

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

Stage 1: Determine the purpose and scope of competitor research. At this stage, it is necessary to clarify what the purpose of competitor research is, whether it is to formulate an overall strategy, or to solve a specific problem; to determine what is the scope of competitor research, whether it is for the entire industry, or for a certain market segment; to choose who is the object of competitor research, whether it is all competitors, or the competitors that focus on.

Stage 2: Collecting competitor information. At this stage, various channels and means are used to collect information about competitors, including first-hand and second-hand information. First-hand information refers to information obtained directly from competitors or related personnel, such as through interviews, questionnaires, observations, trial purchases, etc.; second-hand information refers to information obtained from open or indirect sources, such as through the Internet, media, Databases, reports, exhibitions, associations, etc. The principle of collecting information is as much as possible, complete, accurate and new. At the same time, we should pay attention to the legality and morality of information, and avoid infringing upon the legitimate rights and interests of competitors and trade secrets.

The third stage: analysis and evaluation of competitor information. At this stage, the collected competitor information is collated, summarized, classified, compared and evaluated to identify the competitor's strengths and weaknesses, strategies, capabilities, dynamics and expectations. There are many ways to analyze and evaluate competitors' information, such as SWOT analysis, Porter's five forces analysis, value chain analysis, strategic group analysis, market community analysis, etc. The principles of analyzing and evaluating competitors' information are objective, rational, systematic and in-depth, while paying attention to the validity and reliability of the information and avoiding one-sided, subjective, misleading and biased information.

The fourth stage: the development and implementation of competitive strategy. At this stage, according to the results of competitor research, formulate and implement their own competitive strategy, in order to enhance their competitiveness and market share. There are many ways to develop and implement competitive strategies, such as cost leadership strategies, differentiation strategies, focused strategies, attack strategies, defense strategies, and alliance strategies. The principle of formulating and implementing a competitive strategy is to meet one's own goals, capabilities and resources, while paying attention to the flexibility and innovation of competitive strategies to avoid rigidity, imitation and follow suit.

3. the competitor research case of Champ Consulting.

Shangpu Consulting is a well-known independent third-party research and investment and financing consulting agency in China, dedicated to providing professional solutions for corporate strategic decision-making. The main business of Shangpu Consulting includes market research, investment consulting and IPO consulting. The competitor research case of Champ Consulting is as follows:

Determine the purpose and scope of competitor research: The purpose of competitor research of Shangpu Consulting is to formulate strategic planning and business development in 2024. The scope of competitor research is China's industry research and investment and financing consulting market. The object of competitor research is Shangpu Consulting's main competitors, such as Analysys, Zero Point, McKinsey, Deloitte, etc.

Collect competitor information: Shangpu Consulting collects competitor information through various channels and means, including enterprise profile, business scope, market share, customer group, income scale, profit level, cost structure, personnel scale, personnel training, technological innovation, brand image, partners, social responsibility and other aspects of information.

Analysis and evaluation of competitor information: Through SWOT analysis, Porter five-force analysis, value chain analysis, strategic group analysis and other methods, Champ Consulting analyzed and evaluated the collected competitor information, and found out the competitor's strengths and weaknesses, strategy, capabilities, dynamics and expectations. For example, Shangpu Consulting found that the advantage of Analysys is that it has strong professionalism and influence in the Internet industry, and the disadvantage is that it has insufficient coverage and depth in other industries; the advantage of Zero is that it has a high level of data analysis and mining. Technical level and innovation ability, the disadvantage is that it is not active enough in market promotion and brand building; McKinsey's advantage is that it has extensive customer resources and visibility on a global scale, the disadvantage is that the localization and adaptability in the Chinese market are not strong; the advantage of Deloitte is that it has rich experience and authority in finance and auditing, and the disadvantage is that it is not professional and in-depth in market research and investment consulting.

Develop and implement competitive strategies: Champ Consulting has developed and implemented the following competitive strategies based on the results of the competitor survey:

Cost leadership strategy: By optimizing the cost structure, improving operational efficiency, reducing service prices, attracting more small and medium-sized customers, and increasing market share and profit margins.

Differentiation strategy: By providing customized, professional and high-quality services, Shangpu Consulting can meet the individual needs of different customers, improve customer loyalty and satisfaction, and enhance brand influence and reputation.

Focus strategy: Shangpu Consulting builds its own core competitiveness, forms its own characteristics and advantages, and seizes the high-end and high-growth market segments by focusing on the areas it is good at, such as new energy, biomedicine, artificial intelligence, etc.

Alliance strategy: through cooperation or alliance with other institutions or individuals, such as universities, research institutes, industry associations, experts and scholars, Shangpu consulting expands its own information resources and knowledge reserves, improves its service level and innovation ability, and expands its market coverage and influence.