Competitor analysis
App used for that
What is a competitor analysis ?
Competitive analysis is a study of the situation of a business (existing or in the process of being created), in its market environment to know the intensity of competition. It is an important component of market research and strategic analysis of an organization. It makes it possible to establish a map of the players present in the target market and to diagnose their strengths and weaknesses in order to adopt a differentiating positioning and strategy.
Competitive analysis also helps to verify the viability of a project. Indeed, this study may reveal a saturation of the market by competition with an excess of offers compared to demand or the presence of a giant monopolizing the market in question. In both of these cases, it seems difficult to establish yourself in the market even with the right tools and a well-established marketing strategy.
Identify competitors and collect data
Direct competition
Direct competitors are entities that offer the same offer. In general, they are the ones that come to mind first when thinking about competition. Direct competition is all the stronger when the competitor is located in the same geographical area.
For example, for a pet store, another pet store will be a direct competitor.
Indirect competition
Indirect competitors are companies that meet the same demand but not in the same way. Indirect competitors should be watched closely because they may well decide to strengthen their competing offer and thereby gain more market share.
For a pet store, a supermarket is an indirect competitor because it is possible to find equivalent products in this kind of store.
Potential competition
Potential competition is more hypothetical. It includes potential new entrants, whether they are diversifying businesses or new competitors.
In the case of the pet store, it could be the arrival of a new online pet store or a botanical store that diversifies its offering.
Having integrated these three types of competition, the company can now list its competitors. It is recommended to build a table that will gather a certain amount of information on the companies studied: identity, date of creation, size, price range, positioning, media and non-media resources...
It is of course necessary to prioritize all these competitors and not to mix direct, indirect and potential competitors.
Identify competitors and collect data
Direct competition
Direct competitors are entities that offer the same offer. In general, they are the ones that come to mind first when thinking about competition. Direct competition is all the stronger when the competitor is located in the same geographical area.
For example, for a pet store, another pet store will be a direct competitor.
Indirect competition
Indirect competitors are companies that meet the same demand but not in the same way. Indirect competitors should be watched closely because they may well decide to strengthen their competing offer and thereby gain more market share.
For a pet store, a supermarket is an indirect competitor because it is possible to find equivalent products in this kind of store.
Potential competition
Potential competition is more hypothetical. It includes potential new entrants, whether they are diversifying businesses or new competitors.
In the case of the pet store, it could be the arrival of a new online pet store or a botanical store that diversifies its offering.
Having integrated these three types of competition, the company can now list its competitors. It is recommended to build a table that will gather a certain amount of information on the companies studied: identity, date of creation, size, price range, positioning, media and non-media resources...
It is of course necessary to prioritize all these competitors and not to mix direct, indirect and potential competitors.
