Ray Slater Berry, a content strategist at Outreach Humans, details the steps to conducting an effective competitive analysis in a Digimind blog post.
Berry believes that competitive analysis is critical in helping long-established companies and emerging businesses alike navigate the competitive landscape. He notes in the blog post that competitive intelligence derived from such analyses positions companies to achieve business revenue growth, reinforce product marketing strategies, build brand awareness and brand affinity, as well as optimize sales and customer service workflows.
A well-structured competitive analysis is rooted in a framework, such as the SWOT analysis, that can be applied to competitive research projects in such a way that companies are able to collect relevant business information and derive actionable insights from it, Berry writes for Digimind.
Companies also need to adopt a process document template to supplement their competitive analysis framework, Berry says. Using a process document gives companies a way to capture detailed information about their business processes and procedures.
Another critical step in performing a successful competitive analysis involves expanding one’s competitive lens. According to Berry, a company’s competitors may not always sell products similar to one's offerings. When conducting competitive analysis, it is important to differentiate immediate competitors and be inclusive of companies from other markets and geographies, Berry explains, since they may offer valuable insights.
Adopting such an approach to competitive analysis allows companies to compile a more varied CI database that will ultimately inform decision-making relative to advancing a company’s brand, product, marketing and overall business awareness.
Information collected regarding a competitor’s brand can help companies come up with better business storytelling strategies. Brand intelligence also allows companies to avoid ineffective tactics employed by their competitors. In addition, companies can use competitor’s unique selling points and price points as a reference to sell their products better.