Competitor research in strategic management and competitive analysis is an assessment of both the strengths and weakness of current and future competitors. This analysis gives both a defensive and offensive strategic context to identify threats and opportunities. Competitor profiling is a subset of competitor research that delves more deeply into understanding the strategies, practices, and brand identity of competitors. It includes benchmarking, market research, and competitor analysis.
Competitor profiling starts by defining competitors. A list of business rivals is then compiled and prioritized according to importance. Competitor profiling requires thorough market knowledge of each firm. The research should also include an in-depth knowledge of key industry partners, their products and services, and their target customers.
Competitor profiling has evolved into a core competency within strategic management. Competitor profiling is part of an overall strategic process that includes conducting competitive, market research, and product and service discovery. One advantage of competitor research is, it can provide a deeper understanding of a company’s competition. Competitive intelligence is particularly important when companies are just starting out or attempting to gain a foothold in a new market segment. Market segmentation provides a detailed picture of customer preferences across multiple industries and geographies. Competitive intelligence helps in providing insights into what makes a product distinct and how customers to choose different products and services.
Competitor profiling goes a step further by providing comprehensive solutions to specific problems related to a firm’s specific industry. In doing so, it allows a company to better manage its competition. One can find competitor profiling services that deal with every aspect of competitor analysis from market growth to market share percentage. Some of the important factors that define and measure a firm’s level of competitiveness include its revenue, service, technology, geographic reach, and its customer base.
Competitor profiling helps companies to better position their brands and target markets. Companies rely on competitive research for a variety of reasons, including helping them identify opportunities that they can exploit, come up with strategies, and create effective marketing campaigns. For instance, one popular way in which companies can make use of this process is to come up with a long-term business strategy. Once again, the primary goal is to gain a competitive advantage. Competitor profiling can be used for a number of reasons, including gaining an edge over competitors through technological developments, coming up with marketing campaigns that will attract more customers, improve customer satisfaction, and come up with a more comprehensive competitor view.
The processes involved in Competitor Research include collecting data and conducting assessments, formulating a business strategy, evaluating competitor strategies, collecting information on business rivals, formulating and evaluating metrics to evaluate the strength and weakness of your business, and coming up with a complete business strategy. Each of these steps is vital for a competitive business strategy. Some of these steps do not directly relate to the core purpose of Competitor Research; however, without these critical elements, your strategy will fail. For instance, without knowing how your competitors are doing things, it is impossible to formulate a concrete plan for beating them.
Another benefit of Competitor Research is that it can help you come up with a good social media marketing strategy. Social media is one of the most important sources of traffic for online businesses, and by monitoring how competitors are positioning themselves on these sites, you can see where potential customers are hanging out and which of your competitors are making the most social media impact. Through Competitor Research, you can also determine what content your competitors are using to promote themselves, such as blogs and posts on their websites. Doing Competitor Research early on can give you valuable insights into what strategies your competitors are using to boost traffic and draw in new customers, which is one of the main benefits of this process.
One last benefit of Competitor Research is that it can help you decide whether or not you should be working on a more in-depth organic search engine optimization strategy. If you haven’t already worked on this strategy, then you should really consider it. If you don’t work on your organic search engine optimization now, chances are, you’ll never know if it’s the strategy that truly works. The reason for this is that your competitors are constantly tweaking their websites to get ahead of the trends and SEO methods that work best. Doing Competitor Research early and often can help you identify which strategies are working, while also helping you to keep abreast of what your competitors are doing to stay ahead of the game.