5 Steps to Creating a Competitive Analysis
Now-a-days with the start-up boom, starting a new business can be extremely competitive. Before starting a new business and investing countless dollars and hours into making your vision become a reality, it’s essential to conduct a thorough competitive analysis so you can understand what you’re up against. Luckily, we have the resources to research and understand our competitors. We just have to know what information is important to note. Creating a competitive analysis allows you to understand the market you are trying to crack, and how to create a product that is unique and will beat out the competition.
- Do Your Research – What keywords would people search to find your business? Do a search and note the other business that rank for the same keywords. Pull their homepages, social media pages, brochures, or any other info they have and compile it into a company profile for each competitor you find.
- Identify Their Target Audiences – Once you have compiled a list of all your competitors and have created their company profiles, now it’s time to identify their audiences. Who are they trying to sell to? Age? Profession? Company size? Identifying their target audience will determine whether or not you’re targeting the same market.
- Find Their Strengths and Weaknesses – Take a quick look into how their product works and start to identify what is really good about it and what needs to be improved. Is their whole product amazing, but their home page is difficult to navigate? Is the product buggy and slow, but they have very affordable pricing? Identify their strengths and weaknesses to understand how they’re running their business.
- Pricing – Look at the pricing for each company. This step is simple and should give you an idea of where to price your product and how your pricing model will fit in to the industry standard.
- Identify Your Competitive Position – Now that you have done all the research and analytics, it’s time to understand where your company fits into the market. Cross reference who your target audience is, what your strengths and weaknesses are, and your pricing to iterate accordingly so that you can beat out your competition.