Competition is the essence of market economy and the driving force of enterprise development. In an increasingly competitive market environment, if an enterprise wants to survive and develop, it must understand its competitors, master the laws and strategies of competition, and formulate reasonable strategies and marketing strategies in order to gain advantages and victory in the competition. Therefore, competitor research is a compulsory course for business operations and an important part of corporate strategic management.

What is Competitor Research?

Competitor research refers to the process of collecting, analyzing and evaluating competitors' information to understand competitors' strategies, capabilities, strengths, weaknesses, dynamics and expectations, so as to provide a basis and reference for enterprises to formulate their own strategies and marketing strategies. The purpose of competitor research is to find out the strengths and weaknesses of competitors, find out the strategic weaknesses and loopholes of competitors, predict the future trends and reactions of competitors, so as to formulate effective competitive strategies and action plans, and enhance their competitiveness and core competitiveness.

The object of competitor research refers to other enterprises that provide the same or similar products or services in the same market or the same industry, meet the same or similar customer needs, and compete for the same or similar market share. Competitors can be divided into direct competitors and indirect competitors. Direct competitors are other enterprises that provide identical or very similar products or services in the same market segment, meet identical or very similar customer needs, and compete for identical or very similar market share. For example, Champ Consulting's direct competitors are Huasheng Consulting, Analysys Consulting, and Boehner Consulting. Indirect competitors are other enterprises that provide partially the same or partially similar products or services in different market segments, meet partially the same or partially similar customer needs, and compete for partially the same or partially similar market share. For example, Champ Consulting's indirect competitors include Deloitte, PricewaterhouseCoopers, McKinsey and others.

Why do competitor research?

Competitor research is a required course for business operations because it helps companies:

(1) Understand the market environment and industry trends, grasp the opportunities and challenges. Through competitor research, companies can understand the scale, structure, growth rate, demand characteristics, consumption habits, consumer psychology, etc. of the market, as well as the development stage, life cycle, technical level, policies and regulations, industry barriers, etc. of the industry, so as to judge the market Attractiveness and industry competitiveness, discover market opportunities and challenges, and provide reference for corporate strategic positioning and goal setting.

(2) Identify their own strengths and weaknesses, enhance competitiveness and core competitiveness. Through competitor research, enterprises can understand the competitors' products, prices, channels, promotion, service, brand, quality, innovation, cost, efficiency, profit and other aspects, as well as the competitors' resources, capabilities, advantages, disadvantages, strategies, objectives, culture and other aspects of the characteristics, so as to compare with themselves, find out their own advantages and disadvantages, and determine their own competitiveness and core competitiveness, it provides the basis for the strategic choice and resource allocation of the enterprise.

(3) Find out the strategic weaknesses and loopholes of competitors, and formulate effective competitive strategies and action plans. Through competitor research, enterprises can understand the strategic intention, strategic direction, strategic focus, strategic implementation and other aspects of the situation, as well as the strategic weaknesses and loopholes of competitors, so as to formulate targeted competitive strategies and action plans, take advantage of the shortcomings of competitors, seize the mistakes of competitors, and achieve competitive advantage and market advantage.

(4) Predict the future trends and reactions of competitors, and take countermeasures and preventive measures. Through competitor research, enterprises can understand the historical performance of competitors, current situation analysis, future planning and other aspects of the situation, as well as the dynamic changes and reaction patterns of competitors, so as to predict the future trends and reactions of competitors, and do a good job of response and prevention measures. Through competitor research, enterprises can understand the historical performance, current situation analysis, future planning and other aspects of competitors, as well as the dynamic changes and reaction patterns of competitors, so as to predict the future behavior and possible measures of competitors, prepare for response and prevention, avoid being disrupted by sudden attacks or changes of competitors, and maintain their own strategic initiative and market stability.

How to Do Competitor Research

Competitor research is a systematic work that needs to follow certain methods and steps to ensure the effectiveness and accuracy of the research. In general, the methods and steps of competitor research include the following:

(1) Determine the purpose and scope of the survey. The purpose and scope of the research refers to what problems to solve through competitor research, what information to obtain, what needs to meet, and which competitors to investigate, what aspects to investigate, how deep the research, etc. Determining the purpose and scope of the research can help companies clarify the focus and direction of the research, avoid blindness and randomness of the research, and improve the efficiency and effectiveness of the research.

(2) Collect competitor information. Collecting competitor information refers to obtaining relevant data and information about competitors through various channels and means, including the basic situation of competitors, product situation, market situation, financial situation, strategic situation, etc. Collecting competitor information can be done in both active and passive ways. Active collection refers to the company's initiative to seek information from competitors or related parties, such as through questionnaires, interviews, observations, field trips, web searches, etc. Passive collection refers to the use of information actively provided by competitors or related parties, such as by analyzing competitors' advertisements, publicity, reports, announcements, news, comments, etc. To collect information about competitors, we should pay attention to the source, quality, timeliness and legitimacy of the information to ensure the authenticity and reliability of the information.

(3) Analysis of competitor information. Analysis of competitor information refers to the collation, induction, comparison, evaluation and interpretation of the collected competitor information through the use of various analytical tools and techniques to reveal the characteristics, patterns, trends and problems of competitors. Analysis of competitor information can be used in both qualitative and quantitative analysis. Qualitative analysis refers to the subjective judgment and evaluation of competitors' information by using logical reasoning, attribution analysis, hypothesis testing and other methods. Quantitative analysis refers to the objective calculation and measurement of competitors' information through the use of mathematical statistics, econometrics, data mining and other methods. Analyze competitors' information and pay attention to the purpose, method, process, and results of the analysis to ensure the validity and accuracy of the analysis.

(4) Evaluate the situation of competitors. Evaluating the situation of a competitor refers to the comprehensive judgment and evaluation of the competitor's strategy, capabilities, strengths, weaknesses, dynamics and expectations through the comprehensive application of the information obtained from the analysis to determine the competitiveness and competitive situation of the competitor. The situation of competitors can be evaluated in two ways: multi-dimensional evaluation and single-dimensional evaluation. Multi-dimensional assessment refers to the use of balanced scorecard, SWOT analysis, five-force model and other tools, a comprehensive assessment of multiple aspects of competitors. One-dimensional assessment refers to a single assessment of an aspect of a competitor by using indicators such as market share, cost advantage, and innovation ability. To evaluate the situation of competitors, we should pay attention to the evaluation criteria, basis, methods, results, etc., in order to ensure the rationality and comparability of the evaluation.

(5) Develop strategies for competitors. The development of a competitor's coping strategy refers to the development of a strategy and marketing strategy for a competitor based on the assessment of the competitor's situation, taking into account its own situation, in order to achieve its own goals and advantages. To develop a competitor's coping strategy, you can use both active and passive strategies. A proactive strategy is one in which a company actively attacks or defends its competitors, for example, through price reductions, promotions, innovation, differentiation, and alliances. A passive strategy is one in which a firm passively adapts to or avoids its competitors, for example, by following, imitating, retreating, or shifting. To develop a competitor's response strategy, pay attention to the objectives, content, implementation, and evaluation of the strategy to ensure the effectiveness and feasibility of the strategy.

Considerations for Competitor Research

Competitor research is a complex task that requires attention to the following aspects:

(1) Competitor research should be planned and regular, not random and occasional. Competitor research should formulate reasonable research plans and arrangements according to the strategic needs of the enterprise and market changes, and clarify the purpose, scope, objects, methods, steps, time, personnel, budget, etc. of the research to ensure the systematicness and continuity of the research.

(2) Competitor research should be focused and selective, not comprehensive and equal. Competitor research should determine the focus and priority of research according to the importance and influence of competitors, concentrate energy and resources, conduct in-depth and comprehensive research on important competitors, and conduct simple and general research on unimportant competitors, so as to ensure the pertinence and effectiveness of the research.

(3) Competitor research should be innovative and breakthrough, not rigid and static. Competitor research should constantly update and improve research methods and tools according to market changes and competitive situation, develop and utilize new information sources and channels, and find and explore new information points and angles to ensure the innovation and foresight of research.

(4) Competitor research should have cooperation and sharing, not isolation and monopoly. Competitor research should establish and improve the organization and mechanism of research according to the strategic needs and organizational structure of the enterprise, clarify the responsibilities and authority of research, realize the coordination and cooperation of research, as well as the communication and transmission of research, so as to ensure the coordination and sharing of research.

(5) Competitor research should be moral and legal, not unscrupulous and illegal. Competitor research should abide by the rules and ethics of the market, respect the legitimate rights and interests of competitors, avoid the use of improper means and methods, such as theft, deception, threats, bribery, etc., to obtain competitors' information, so as to ensure the morality and legitimacy of the research.

The competitor research practice of Champ Consulting.

Shangpu Consulting is a professional consulting service company, providing customers with strategic consulting, market consulting, management consulting, technical consulting and other consulting services and solutions. Champu Consulting has rich experience and achievements in competitor research. The following are some specific cases of competitor research conducted by Champu Consulting:

Competitor research services for an automobile manufacturer. By collecting and analyzing competitors' products, prices, channels, promotions, services, brands, quality, innovation and other information, Shangpu Consulting evaluated competitors' strategies, capabilities, strengths, weaknesses, dynamics and expectations, and formulated coping strategies and action plans for competitors to help customers enhance their competitiveness and market share.

Provide competitor research services for an e-commerce platform. By collecting and analyzing competitors' information on users, traffic, transactions, revenue, profits, costs, efficiency, innovation, etc., Shangpu Consulting evaluates competitors' strategies, capabilities, strengths, weaknesses, dynamics and expectations, and formulates coping strategies and action plans for competitors to help customers improve their competitiveness and profitability.

Competitor research for a medical device company. By collecting and analyzing competitors' information on technology, products, markets, channels, services, brands, quality, innovation, etc., Shangpu Consulting evaluates competitors' strategies, capabilities, strengths, weaknesses, dynamics and expectations, and formulates coping strategies and action plans for competitors to help customers improve their competitiveness and market share.