Competition doesn’t have to be a bad thing. It can inspire you to strive harder, to perform better, and to take your business to the next level. Competitor analysis allows you to identify your biggest competitors to find out what they are doing right, the kind of strategies they have in place, and how you can react.
Read on to discover the top 10 benefits of proper competitor analysis, and why you should be utilizing it for your business today…
What is competitor analysis?
So what is competitor analysis? Well, much as it sounds, this is the practice of assessing and analyzing your competition. You can use it to identify threats and your strongest competition so you know exactly who they are. You can then discover what kind of marketing strategies they are using, how their products compare to yours, and anticipate their actions.
If done right by an experienced SEO company in Dubai or similar, you can even interpret how they will likely respond to actions you take, and even influence their actions in the long run. There are so many benefits to competitor analysis, and the main ones are outlined below…
1. You can find out who your competition really is
The first benefit, and first step, of competitor analysis is that you identify who your competition really is. You may consider certain companies your direct competition, especially if they are leaders in your industry, but they may not actually be competition. Or at least not your biggest threat.
Indeed, you may discover that certain big businesses are less competitive and more compatible, while the smaller businesses down the street may be attempting to do exactly what you do. Once you know who your competition is, you can begin to understand how to react.
2. It encourages better product development
Having a proper understanding of the products your competitors are developing is a must today. You need to know what else is out there, what similarities you have with them, and what differences as well. Knowing that a new and impressive type of product is out there can inspire you to improve your own designs.
You may decide to move closer to what your competitors are doing. Or you may decide to go in a different direction entirely. The goal is to create the best product possible that will sell well in your area, and competitor analysis is essential for this.
3. It allows for better marketing insight
Knowing how your competitors are marketing their brands can help you formulate your own strategy. This again doesn’t mean that you have to follow in their footsteps. You can see what works and what doesn’t, what customers respond well to and what they don’t.
The way you present yourself and your products to your potential customers is utterly crucial today, and proper competitor analysis can give you a better idea of how to do it right.
4. You can identify your target market
Discovering who your competitors are targeting can help you identify or narrow down your own target market. If, for instance, your competitor is aiming its advertising at women of a certain age in Dubai and succeeding, you may find that they should be your focus as well.
Knowing your target market can determine so many of your strategies going forward and is an essential part of any business.
5. You can improve your customer experience and satisfaction
The more you know about the market and what your target audience wants, the better you can make it a reality.
Proper competitor analysis allows you to discover what they are doing right in regards to customer care and satisfaction, and how to do better yourself.
6. It allows you to find the gaps in the market
When you can see exactly what your competitors are doing, you can also see what they aren’t doing. This can allow you to identify areas that aren’t as saturated as others in your field and respond accordingly.
These gaps can be a potentially huge source of income if they are something you are doing that no one else is.
7. You can find out what problems they are facing (and that you might be too)
All businesses face problems whether they come from customers, the market or within the business itself. How well your company survives is based on how you respond to these issues when or even before they arise.
Proper competitor analysis can help you discover what threats other businesses are facing so that you are more prepared if they come your way. You can find out what the likely biggest threats are, put plans in place, and react accordingly.
8. You can identify your own USP
Your unique selling point, or USP, is what sets your business apart. It is why customers should buy from you over someone else.
It is what makes you stand out from the crowd, what you offer that no one else does. It can be tricky to know exactly what that is if you don’t know what anyone else is doing.
9. You can measure your own success
One of the best ways to see how your business is succeeding and growing is to look at your competition. You cannot measure success in a vacuum. If your profits have gone up a certain percentage that could be cause for massive celebration. Or you may find that your competitors went up more and you missed out on potentially the same.
Knowing how your business is doing compared to your competition can not only help you to measure your success, but will also inspire you to do better.
10. You can avoid making their mistakes
Finally, one of the top benefits of proper competitor analysis is that it allows you to learn from their mistakes. You can discover their weaknesses, learn from their failures and save on making these costly mistakes yourself.
If, for instance, they attempted a certain product line that failed, you will know not to go down that road. You might discover that their website is causing them problems, or that their social media could be better, and this can help you decide where to focus your money and time.
Wrapping it Up
There really are so many benefits to competitor analysis other than simply checking in on the competition. If carried out properly, it can be a massive plus for your business. So if you are considering improving on your competitor analysis, consult an experienced agency to help you out today.
