Competitive Analysis is a Dynamic Process
Competitive analysis is to understand the competitor business model, their financial strengths, their brands and services perceived values, their operational marketing strengths and their operations competence strengths.
Studying the competitor’s activities at a strategic level to find how they generate a threat to company’s brand and service position is a part of the analysis process. Competition strength must be taken into the total marketing plan because competition can often be the largest barrier to growth. Furthermore, the company uses the key findings to take corrective action attacking the competitor strengths or their weakest areas. Competitive analysis key discoveries and observations can be many and having the right information and facts enables Marketers to uncover new breakthrough business opportunities to becoming a stronger market players.
It is essential to identify the initial sources of information for the analysis. There are several available sources and officially published materials containing information such as from; the competitor’s internet home page, company’s annual reports, Nielsen audit, market researches and broker’s reports. Other information can be discovered in the market itself, for example; pricing, promotions, brands and products, market presence, advertising programs, and execution excellence in the market place. The collection of information must apply to legal and ethical practices and is based on public information, interviews and observations in the market place.
Understanding the competitor’s key strategies, aggressiveness cultures, and marketing strategies is an essential part of the competitive analysis framework.