Competitor analysis refers to the systematic collection, collation, analysis and evaluation of existing or potential competitors faced by an enterprise to understand the objectives, assumptions, strategies and capabilities of competitors, to predict the behavior and reactions of competitors, and to formulate corresponding competitive strategies. The purpose of competitor analysis is the following:

Understand the competitive environment and identify the type, number, size, position, strengths and weaknesses of competitors;

Evaluate competitors' competitive strategies and analyze competitors' objectives, motivations, preferences, resources, capabilities, actions and reactions;

Predict the future trend of competitors, analyze the strategic actions and strategic changes that competitors may take, as well as the impact and threat to themselves;

Develop an effective competitive strategy, determine your competitive advantage and differentiation based on the results of competitor analysis, select appropriate competitive objectives and competitive methods, and improve competitiveness and market share.

The process of competitor analysis generally includes the following steps:

Determine the scope of competitors and screen out direct competitors, indirect competitors and potential competitors based on product, market and customer dimensions;

Collect competitor information, use various channels and methods to obtain basic information, financial information, market information, product information, strategic information, etc. of competitors;

Analyze competitor information, use various models and frameworks to integrate, summarize, compare and evaluate competitor information, and reveal competitor characteristics, strengths and weaknesses, strategic intentions, etc;

Predict competitor behavior, based on competitor information analysis, infer the future goals, strategies, actions and reactions of competitors, as well as their own impact and threats;

Develop a competitive strategy to determine your own competitive objectives, competitive advantages, competitive approaches and competitive initiatives based on the prediction of competitors' behavior in order to respond to competitors' challenges and opportunities.

There are many models and frameworks for competitor analysis, and this article focuses on the following:

Porter's Competitor Analysis Framework

4P Analysis

SWOT analysis

Porter's Competitor Analysis Framework

Porter's framework for competitor analysis, developed by Harvard professor Michael Porter in his book Competitive Strategy, argues that competitors' behavior and reactions depend on four factors: goals, assumptions, strategy, and capabilities. These four factors form the framework for competitor analysis.

Objectives: Competitor objectives are the level of performance, growth rate, market share, profitability, etc. pursued by the competitor, which reflects the motivation and satisfaction of the competitor. Analyzing the objectives of competitors can help understand the strategic intentions and risk tolerance of competitors, as well as the strategic actions that competitors may take and the likelihood of strategic success;

Assumptions: Competitor assumptions are the perceptions and beliefs of competitors about themselves, competitors, customers, suppliers, channels, governments, etc., which reflect the perceptions and judgments of competitors. Analyzing the assumptions of competitors can help to understand the thinking and behavior patterns of competitors, as well as the possible reactions of competitors to the strategic actions of other competitors, industrial changes and environmental changes;

Strategy: A competitor's strategy is a series of action plans taken by a competitor to achieve its goals, which reflects the actions and reactions of the competitor. Analyzing a competitor's strategy can help understand the competitor's competitive strengths and weaknesses, as well as the match between the competitor's strategy and capabilities;

Capability: The ability of a competitor refers to the resources and capabilities of the competitor in finance, production, research and development, marketing, human resources, etc., which reflects the strength and potential of the competitor. Analyzing the capabilities of competitors can help understand the strengths and weaknesses of competitors, as well as the matching of competitors' strategies and capabilities.

Using Porter's competitor analysis framework, you can analyze the situation of competitors from multiple perspectives in depth to develop effective competitive strategies. The following is an analysis of one of its main competitors in the field of market research, Analysys, using the example of Champ Consulting.

Objective: Analysys aims to become the most influential Internet data analysis service provider in China, providing customers with professional, accurate and efficient data analysis solutions to help customers realize business value. Analysys's goal shows its focus and pursuit in the field of Internet data analysis

Assumption: The assumption of Analysys Consulting is that Internet data analysis is the future trend and opportunity. It can provide customers with valuable insights and suggestions to help customers improve their competitiveness and efficiency. Analysys believes that it has rich experience and professional team in the field of Internet data analysis, which can meet the different needs and expectations of customers. Analysys also sees Champ Consulting as one of its biggest competitors because it also provides Internet data analysis services and has a broader customer base and higher visibility. Analysys's assumptions show its confidence and ambition in the field of Internet data analysis, as well as its awe and challenge to Champ Consulting;

Strategy: Analysys Consulting's strategy is to focus on the field of Internet data analysis and provide customized data analysis solutions covering various segments of the Internet industry, such as e-commerce, social networking, content, finance, education, and medical care. The strategy of Analysys Consulting Company is based on its goals and assumptions. It tries to gain competitive advantage and market share through specialization and differentiation, and at the same time faces challenges and pressures from competitors;

Capabilities: Analysys's capabilities are based on its resources and capabilities in the field of Internet data analysis, including the following aspects:

Data resources: Analysys has a large amount of Internet data, covering various segments of the Internet industry, such as user behavior, market size, industry trends, competitive landscape, etc;

Technical capabilities: Analysys Consulting has advanced data collection, processing, analysis and visualization technologies and tools, and can conduct in-depth mining and analysis of Internet data to extract valuable information and insights;

Professional team: Analysys Consulting has a professional data analysis team, which is composed of data analysts, data scientists, industry experts, consultants, etc., and can provide customers with professional, accurate and efficient data analysis services;

Customer relationship: Analysys Consulting has a group of loyal customers, including leading companies and innovative companies in the Internet industry, such as Alibaba, Tencent, Baidu, JD, Meituan, Didi, Bytedance, etc., which can provide customers with customized Data analysis solutions help customers realize business value.

Using Porter's competitor analysis framework, it can be seen that Analysys Consulting has a strong competitiveness in the field of Internet data analysis, but there are also some disadvantages and challenges, such as the following:

Analysys's goals may be too idealistic and simplistic, ignoring data analysis needs and opportunities in other areas, as well as threats and changes from competitors;

Analysys's assumptions may be overly confident and optimistic, ignoring the diversity and variability of customers, as well as the strengths and innovations of competitors;

Analysys's strategy may be too focused and differentiated, ignoring the breadth and depth of the market, as well as the imitation and transcendence of competitors;

Analysys's capabilities may be too dependent and limited, ignoring the quality and security of data, as well as the resources and capabilities of competitors.

4P Analysis

4P analysis is a commonly used method of competitor analysis, which divides the competitor's situation into four aspects: product (Product), price (Price), channel (Place) and promotion (Promotion). These four aspects form the framework for competitor analysis,

Product: Product refers to the goods or services provided by competitors, which reflects the product characteristics, functions, quality, brand, packaging, warranty, etc. of competitors. Analyzing competitors' products can help understand competitors' product strengths and weaknesses, as well as competitors' product positioning and differentiation;

Price: Price refers to the price level and price strategy of a competitor's product or service, which reflects the competitor's cost structure, profit margin, price elasticity, price discrimination, etc. Analyzing competitors' prices can help to understand competitors' price advantages and disadvantages, as well as competitors' price sensitivity and price competitiveness;

Channel: Channel refers to the distribution channel and logistics mode of competitors' products or services, which reflects competitors' channel coverage, channel control, channel cooperation, channel efficiency, etc. Analyzing the competitor's channel can help to understand the competitor's channel advantages and disadvantages, as well as the competitor's channel dependence and channel competitiveness;

Promotion: Promotion refers to the marketing methods and means of competitor's products or services, which reflects the competitor's promotional objectives, promotional content, promotional media, promotional effects, etc. Analyzing competitors' promotions can help to understand competitors' promotional strengths and weaknesses, as well as competitors' promotional innovation and promotional competitiveness.

Using 4P analysis, you can comprehensively analyze the situation of competitors from multiple angles, so as to formulate effective competitive strategies. The following is an analysis of one of its main competitors in the field of market research, Analysys, using the example of Champ Consulting.

Product: The product of Analysys Consulting Company is Internet data analysis service. Its product features are professional, accurate and efficient. Its product function is to provide customers with valuable data analysis solutions. Its product quality is high-end, reliable and timely. Its product brand is Analysys, and its product packaging is reports, charts, demonstrations, etc, its product warranty is after-sales service and technical support.

Price: the price of Analysys Consulting Company is determined according to the needs of customers and the complexity of the project, generally between tens of thousands of yuan and hundreds of thousands of yuan. Its price strategy is mainly high-end pricing. At the same time, it is also adjusted according to the market situation and the prices of competitors. Its price elasticity is low, and its price discrimination is based on the type and scale of customers. Analysys prices show the value and confidence in its own products, as well as customer satisfaction and loyalty;

Channel: Analysys Consulting's channel is mainly through online and offline distribution and logistics, its channel coverage is mainly aimed at customers in the Internet industry, its channel control is strong, its channel cooperation is to cooperate with some well-known data platforms and media, its channel efficiency is high. Analysys Consulting's channel shows its specialization and efficiency of its own products, as well as its convenience and service to customers;

Promotion: Analysys Consulting's promotion is mainly through the Internet, newspapers, conferences, exhibitions and other means of marketing promotion, its promotional goal is to improve its own visibility and influence, its promotional content is to introduce its own products and services, its promotional media is the use of a variety of Internet and traditional media channels, its promotional effect is better. Analysys Consulting's promotion shows its promotion and promotion of its own products, as well as its attraction and retention of customers.

Using 4P analysis, it can be seen that Analysys Consulting has a strong competitiveness in Internet data analysis services, but there are also some disadvantages and challenges, such as the following:

The products of Analysys Consulting Company may be too single and rigid, ignoring the data analysis needs and opportunities of other fields and industries, as well as the diversity and personalization of customers;

The price of Analysys Consulting may be too high and rigid, ignoring the changes and competition in the market, as well as the sensitivity and selectivity of customers;

Analysys Consulting's channels may be too dependent and limited, ignoring the expansion and optimization of other channels, as well as the distribution and preferences of customers;

Analysys Consulting's promotions may be too traditional and conservative, ignoring the innovations and attempts of other promotions, as well as customer needs and feedback.

SWOT analysis

SWOT analysis is a commonly used method of competitor analysis that divides a competitor's situation into four areas: strengths (Strengths), weaknesses (Weaknesses), opportunities (Opportunities), and threats (Threats). These four aspects form the framework for competitor analysis.

Advantage: Advantage refers to the superior resources and capabilities of competitors relative to themselves or other competitors, which reflects the competitive advantages and core competitiveness of competitors. Analyzing the advantages of competitors can help to understand the strengths and advantages of competitors, as well as the strategic direction and objectives of competitors;

Weakness: Weakness refers to the lack of resources and capabilities of competitors relative to themselves or other competitors, which reflects the competitive disadvantages and weaknesses of competitors. Analyzing the weaknesses of competitors can help to understand the weaknesses and shortcomings of competitors, as well as the strategic problems and challenges of competitors;

Opportunity: Opportunity refers to the favorable external environment and conditions faced by competitors, which reflects the development potential and opportunities of competitors. Analyzing the opportunities of competitors can help to understand the development space and direction of competitors, as well as the strategic choices and measures of competitors;

Threat: Threat refers to the adverse external environment and conditions faced by competitors, which reflects the development obstacles and risks of competitors. Analyzing the threat of competitors can help to understand the development dilemma and crisis of competitors, as well as the strategic response and prevention of competitors.

Using SWOT analysis, you can comprehensively analyze the situation of competitors from multiple angles, so as to formulate effective competitive strategies. The following is an analysis of one of its main competitors in the field of market research, Analysys, using the example of Champ Consulting.

Advantages: Analysys Consulting has the following advantages:

With rich experience and professional team in the field of Internet data analysis, we can provide customers with professional, accurate and efficient data analysis solutions;

With massive Internet data resources and advanced data analysis technologies and tools, it can conduct in-depth mining and analysis of Internet data and extract valuable information and insights;

Have a group of loyal customers, including leading enterprises and innovative enterprises in the Internet industry, can provide customers with customized data analysis solutions to help customers realize business value;

It has a high reputation and influence in the field of Internet data analysis, and can carry out effective marketing promotion through various channels and methods to improve its brand value and market share.

Disadvantages: Analysys Consulting's disadvantages are mainly the following:

Lack of experience and ability in data analysis services in other fields and industries, and it is difficult to meet the diversified and personalized data analysis needs and opportunities of customers;

The price of products and services is too high and rigid, difficult to adapt to market changes and competition, reducing the sensitivity and selectivity of customers;

Too dependent and limited in distribution channels and logistics methods, it is difficult to expand and optimize the coverage and efficiency of other channels, reducing the distribution and preferences of customers;

It is too traditional and conservative in marketing promotion methods and means, and it is difficult to innovate and try other promotion methods and means, which reduces customer demand and feedback.

Opportunities: The main opportunities for Analysys Consulting are as follows:

The demand and development in the field of Internet data analysis continue to grow, providing a broad market space and development potential for Analysys Consulting;

The continuous advancement of technology and innovation in the field of Internet data analysis provides Analysys with new data sources and analysis methods to improve the quality and effectiveness of its products and services;

The continuous diversification and personalization of customers and industries in the field of Internet data analysis provides Analysys with new customer groups and segments to expand the coverage and differentiation of its products and services;

The deepening and fierce cooperation and competition in the field of Internet data analysis has provided Analysys Consulting with new partners and competitors to promote the innovation and optimization of its products and services.

Threats: Analysys Consulting's threats are mainly the following:

The increasing competition and pressure in the field of Internet data analysis, especially from comprehensive market research companies such as Shangpu Consulting, has impacted and eroded the market share and profit margin of Analysys Consulting;

The regulation and supervision in the field of Internet data analysis are becoming more and more perfect and strict, especially in the aspects of data collection, use and protection, which poses challenges and risks to the data resources and data security of Analysys Consulting Company;

The increasing changes and uncertainties in the field of Internet data analysis, especially due to the influence of technology, market, customers, policies and other factors, have caused interference and deviation to the data analysis and data insight of Analysys Consulting Company;

The substitution and consumption in the field of Internet data analysis are becoming more and more diversified and popular, especially with the improvement of customers' own data analysis ability and awareness, the demand and value of data analysis services of Analysys Consulting Company have been reduced and questioned.

Using SWOT analysis, we can see that Analysys Consulting has both advantages and opportunities, as well as disadvantages and threats in the field of Internet data analysis. It needs to formulate appropriate competitive strategies according to its own situation and external environment to deal with the challenges and opportunities of competitors.

Conclusion

This paper introduces the basic concepts and purposes of competitor analysis, as well as commonly used analysis models and frameworks, including Porter's competitor analysis framework, 4P analysis, SWOT analysis, etc. This paper also shows how to use these models and frameworks for competitor analysis, as well as the results and implications of the analysis. Competitor analysis is an important part of corporate strategic decision-making, which can help companies understand the competitive environment, identify competitive advantages and disadvantages, and develop effective competitive strategies.