Competitor research is a strategic method of collecting and comparing market information to formulate strategy and execute tactics to counter competitor positions. Competitive analysis is the science of studying all aspects of a competitive environment to anticipate, mitigate, and overcome the most likely responses of competitors and other key players in the marketplace. Competitive analysis is a blend of economics, strategic management, and psychology. This analysis provides an offensive as well as defensive strategic context to recognize threats and opportunities.
Competitor research tools encompass a variety of approaches and data sources to gather competitor and industry information. Competition data is based on many different types of sources. Competitive journals and magazine articles; competitor profiles and personal Websites; competitor surveys; competitor directories; supplier and distributor databases; government and nonprofit organization reports; and supplier-wholesale price lists are some of the most common resources that are used to analyze competitors. Competitive information is important for companies to effectively compete in the marketplace. Analysis of competitors is critical to the formulation of a company’s strategy to counter competition. It is also important to note that although competitor research tools can provide valuable research data and information, they should not be used as the sole basis for company strategy formulation.
Competitor research should not be conducted without knowledge of weaknesses in the competitor’s business model or process, competitive advantages over competitors, and the opportunity to exploit those strengths. The goal of conducting competitive research is to increase the knowledge base of the Company. By uncovering weaknesses in the competitor’s business models and processes, the Company is better placed to develop a robust strategy to overcome the competitive disadvantages. Competitor research is also an important tool in building a competitive advantage by identifying opportunities to improve manufacturing processes and customer service, enhance flexibility and operational effectiveness, and improve innovation and productivity.
Competitor profiling, which consists of obtaining a competitor, customer, and economic information, is also important for the Company to formulate a strategy to counter the competitor’s weaknesses. Competitor profiling involves gathering information about the businesses of competitors and their customers to gain an understanding of the competitors’ overall structure, business objectives, marketing activities, customer preferences, working capital, sales, and investment strategies. Gathering this information enables the Company to develop a plan to counter the weaknesses of the competitor with the least amount of cost. Competitor profiling requires gathering the information and analyzing it to come up with an effective strategy.
The primary goal of Competitor Research is to find out what makes a competitor’s strategy tick and how that strategy may benefit the Company. The second goal of Competitor Research is to discover and implement the most suitable competitive strategy. Competitor research tools such as keyword tools and semrush can be very helpful for this purpose. The third goal is to test the effectiveness of the competitive strategy by tracking the amount of traffic to the competitor website, the number of sales, the number of inquires, and the number of comments made about the Company by customers.
Competitor intelligence tools are available online that can help the Company to gather and organize competitor data in an easily usable format. Some of the popular tools available online include: competitor keyword tool and competitor social media tools which provide a wide range of information regarding the target market, competitors, and the various marketing channels and activities. Competitor intelligence tools can help the Company analyzes the activities of target markets and their buying behavior. Keywords in particular are particularly useful for competitive intelligence analysis because they give insight into the target market’s purchasing behavior.
Competitor Analysis Tools and Software – These analysis tools are used to examine the competitor’s web site, their keywords, the page’s rank, links, content and other data. These tools and software allow the Company to determine the amount of competition the Company is likely to face and how well they are matching up against their competitors. The software can also indicate how similar the Company’s products and services are to theirs or how similar the Company’s pricing strategy appears to be to their competition.
Many Competitor Research Tools can be downloaded from the internet for free. Competitor keyword Tool is one of the most popular among all the Competitor Research tools available online. It is very easy to use and is suitable for all kinds of search engine. Competitor keyword tool provides a list of all the top ranking keywords of all the major competitors along with their rank, image, description, price, and availability according to exact competition level. All the basic information about the competitors is available on the same page and it helps the Company to determine what they look like, how they act, what their strength and weaknesses are and what they plan to do in future.