A competitive analysis is a critical part of your company marketing plan. With this evaluation, you can establish what makes your product or service unique--and therefore what attributes you play up in order to attract your target market.
Evaluate your competitors by placing them in strategic groups according to how directly they compete for a share of the customer's dollar. For each competitor or strategic group, list their product or service, its profitability, growth pattern, marketing objectives and assumptions, current and past strategies, organizational and cost structure, strengths and weaknesses, and size (in sales) of the competitor's business. Answer questions such as:
In order to be successful in your new business, you have to know your competitor. Understanding your customers cannot be done without considering the strengths and weaknesses of your competition and how they satisfy the needs of their customers. This process includes understanding the market niches they are pursuing and why their customers make a decision to buy product from them. In the free market, people are provided alternate choices, and the companies that evaluate the products or services without considering those differences will find themselves falling behind in the race.