Competitor analysis is a systematic process of collecting, analyzing and evaluating competitors' information and data, aiming to understand competitors' strengths and weaknesses, strategies and behaviors, goals and motivations, resources and capabilities, market performance and development trends, so as to provide a basis and guidance for strategic decision-making.

The purpose of competitor analysis is the following:

Understand the market competition pattern and competition strength, determine their own market position and competitive advantage

Identify the strategic intentions and action patterns of competitors, and predict the future movements and possible reactions of competitors.

Discover the potential opportunities and threats of the market, looking for the space and direction of differentiation and innovation

Develop targeted competitive strategies and action plans to increase market share and profitability

The steps of competitor analysis include the following stages:

Determine the scope and type of competitors, divide competitors into categories such as direct competitors, indirect competitors, potential competitors and substitute competitors according to the similarity of products or services, the degree of overlap in the market, and the directness of competition, and select the competitors that focus on analysis.

Collect competitors' information and data, use various channels and methods, such as online search, market research, customer feedback, personal channels, etc., to obtain competitors' basic information, financial status, product characteristics, price strategy, channel strategy, promotion strategy, brand image, customer satisfaction, market share and other information and data

Analyze competitors' information and data, use various tools and models, such as SWOT analysis, Porter's five-force model, value chain analysis, core competitiveness analysis, etc., to organize, summarize, compare and evaluate competitors' information and data from different angles and levels, revealing competitors' strengths and weaknesses, strategies and behaviors, goals and motivations, resources and capabilities, market performance and development trends, etc.

Formulate the coping strategies and action plans of competitors, determine the priority and attention of competitors according to the results of competitor analysis, combined with their own situation and objectives, and select suitable competitive strategies and action plans, such as offensive strategies, defensive strategies, cooperation strategies, avoidance strategies, etc., as well as specific product strategies, price strategies, channel strategies, promotion strategies, brand strategies, etc, implement competitor monitoring and evaluation, and adjust competitor's response strategies and action plans in a timely manner

There are several tools and models for competitor analysis:

SWOT analysis is a tool to assess the strengths (Strengths), weaknesses (Weaknesses), opportunities (Opportunities) and threats (Threats) of enterprises and competitors, which can comprehensively analyze the situation and trends of enterprises and competitors from both internal and external dimensions, as well as the gap and impact between them.

Porter's Five Forces Model is a model for analyzing the competitive structure and strength of the industry, proposed by Michael Porter, including competitors within the industry, potential entrants, substitutes, and suppliers and buyers outside the industry. It can analyze the attractiveness and profitability of the industry in depth from multiple perspectives, as well as the strategic choices and action space of competitors.

Value chain analysis is a tool to analyze the value creation process and value sources of enterprises and competitors. It is proposed by Michael Porter and divides the activities of enterprises into two types: main activities and auxiliary activities. The main activities include internal logistics, production, external logistics, marketing and sales, and after-sales service. The auxiliary activities include procurement, technology development, human resource management, infrastructure, which can be divided into different activity links, compare and evaluate the cost and efficiency of enterprises and competitors, and the potential and ways to improve value

Core competitiveness analysis is a tool to analyze the core advantages and capabilities of enterprises and competitors. It is proposed by C. K. Prahalad and Gary Hamel. It defines core competitiveness as a kind of ability to bring enterprises The unique ability of continuous competitive advantage has the characteristics of creating value for customers, difficult to imitate and copy, and can be extended to multiple products and markets. It can be from different angles, identify and evaluate the core competitiveness of enterprises and competitors, as well as ways and means to enhance and protect core competitiveness.

The application and value of competitor analysis are as follows:

Help enterprises understand the competitive situation of the market, clarify their own market positioning and competitive advantages, and improve market sensitivity and adaptability

Help enterprises to identify the strategic intentions and action patterns of competitors, predict the future trends and possible reactions of competitors, and formulate effective competitive strategies and action plans.

Help companies identify potential opportunities and threats in the market, find space and direction for differentiation and innovation, and enhance the value and attractiveness of products and services.

Help enterprises optimize the allocation and utilization of resources, improve cost-effectiveness and operational efficiency, enhance competitiveness and profitability

Help enterprises to establish a competitor monitoring and evaluation mechanism, adjust competitive strategies and action plans in a timely manner, and respond to market changes and challenges

Examples of competitor analysis are the following:

Shangpu Consulting Company provides a competitor analysis service for an automobile manufacturer to help it understand the competition pattern and development trend of domestic and foreign automobile market, identify its main competitors and substitutes, analyze its competitors' product characteristics, price strategy, channel strategy, brand image and other aspects, evaluate its competitors' advantages and disadvantages and market performance, and find potential opportunities and threats in the market, develop targeted competitive strategies and action plans, such as developing new product lines, adjusting pricing strategies, expanding new channels, and enhancing brand awareness to increase their market share and profitability

Shangpu Consulting Company provides a competitor analysis service for an e-commerce platform to help it understand the competitive structure and competitive strength of the domestic and foreign e-commerce market, identify its direct competitors, indirect competitors, potential competitors and substitute competitors, and analyze its competitors' platform characteristics, merchant strategies, user strategies, technology strategies, marketing strategies, etc, assess the strengths and weaknesses, strategic intentions and action models, goals and motivations, resources and capabilities, market performance and development trends of its competitors, discover potential opportunities and threats in the market, and formulate targeted competitive strategies and action plans, such as increasing the platform's functions and services, optimizing the experience and satisfaction of merchants and users, improving the platform's technology and security, and innovating marketing and promotion methods, to enhance the attractiveness and competitiveness of the platform

Shangpu Consulting Company provides a competitor analysis service for a catering chain enterprise to help it understand the competition situation and consumption trend of the catering market at home and abroad, identify its main competitors and substitutes, analyze its competitors' dishes characteristics, price strategy, store strategy, service strategy, brand strategy and other aspects, evaluate its competitors' advantages and disadvantages and market performance, and find potential opportunities and threats in the market, develop targeted competitive strategies and action plans, such as developing new dishes and packages, adjusting pricing strategies, expanding the number and coverage of stores, improving service quality and efficiency, and enhancing brand influence and loyalty to increase their market share and profitability

To sum up, competitor analysis is an important method of market research and strategic planning, which can help enterprises understand the competitive situation of the market, identify the strategies and behaviors of competitors, discover market opportunities and threats, formulate effective competitive strategies and action plans, and enhance the competitiveness and profitability of enterprises. As a professional consulting service provider, Shangpu Consulting has rich experience and ability in competitor analysis. It can provide customized competitor analysis services for customers in different industries and scenarios, and help customers stand in the market. Realize the development and success of the enterprise.