Competitor research in strategic management and marketing is a comprehensive review of the strengths and weaknesses of potential and existing competitors. This research provides both a strategic and offensive strategic perspective to identify threats and opportunities. It also involves conducting extensive demographic data, market research, and economic modeling to forecast the effect of competitor entry and exit on a product’s market. The results of competitor research provide insight into the competitive behavior of product and service providers and executives, as well as the current and future competitive landscape in the industry.
Competitor research can be used for various business operations. For instance, it can be used in product development and design, marketing, sales, distribution, and financial services, to name just a few areas. Competitor research should therefore be used in each of these areas with a particular focus on the specific competitive environment that you are addressing.
Competitor research should be conducted on a large scale to capture a variety of markets. These markets can include both local and international markets. In addition to the competition that exists within your market, you should also consider competitors in other markets that are not directly related to your industry. A market that is not directly related to your industry can have implications that are relevant to your business and to your competitive environment. For example, if your market is a health care industry and a competitor in the same market offers the same product or service, you may need to address the competitive implications of the competition from a different market.
Competitors are generally analyzed through their industry and geographic area. Competitive analysis will examine the strengths of each market segment and will determine which competitors exist that could affect your competitive environment. A competitive analysis also identifies the barriers and opportunities in each market, such as new products, new technologies, existing product or service innovations, and the ability of existing companies to successfully compete.
Competitive analysis also includes demographic data and market research. This information allows you to develop a competitive profile for your market, including both market size, number of employees, and market share. Market research can provide insight into product characteristics, marketing plans, product pricing, customer loyalty, and product mix. It can also provide insight into the competition in terms of product and service quality, market share, brand preference, target customers, product offerings, pricing, and quality, as well as pricing, quality, customer service, customer satisfaction, and brand recall, and loyalty, among others.
Competitive analysis also includes the identification of threats to your competitive environment. Identifying these threats and their impact on your market and your company’s overall strategy and operations are vital for maintaining and strengthening your competitive position. The analysis of competition also provides additional insight into the competitive behavior of your competitors, their products, their business practices, their business processes and the impact of competitive activities. It can also help you develop a plan to mitigate and resolve any issues that may exist that could negatively impact your business.
Competitor research also involves testing various strategies to evaluate potential competitor responses to any identified challenges. The purpose of competitive analysis is to determine the likely response of each competitor to a new or evolving competitive situation. Strategies used to counter competitor behavior can include advertising, marketing, sales efforts, sales promotion and distribution, and technical innovation. Competitor analysis helps determine which product or service offerings will most effectively respond to competitive activity and can help determine whether or not the competition’s product or service offerings will be successful.
Competitor research is vital to the success of a competitive organization and to the successful operation of its business. Effective competitor research provides insight into the competitive environment that your company operates in, as well as into the competitive behaviors of your competitors.