Competitor analysis becomes a must if you are to stay afloat in the business industry. Competitor analysis involves evaluating the strengths and weaknesses of your business, and the competitors.
Here are some benefits of conducting a competitor’s analysis:
1. You get to save money by avoiding costly mistakes made by your competitors
You can avoid these mistakes by identifying them beforehand. A great example of this is the keywords used by your competitor in their campaigns. By identifying these keywords you will know how much they cost, its performance and if it worked for their campaigns. you get to decide whether to use them or create a different set.
2. identifying the market you’re competing in
Carrying out regular competitive analysis makes you understand the marketplace you are operating in. You understand the state of your competitors’ businesses. You also get to know the strengths and weaknesses of your business. Once you know where you stand, you can develop effective strategies to beat the competition and drive more sales to your online store.
3. Identify the current market trends
Through competitor analysis, you’ll be able to predict an upcoming market trend. You’ll be able to identify where the competitors are heading. this helps you adjust your strategies to be able to cope up and capture a greater market share.
4. Understanding different marketing strategies
Different marketing strategies give out different magnitudes of benefits. Getting information about the strategies your competitors are using in their marketing helps you to counter them.
5. Identifying opportunities for acquisition or a merger
Competitor analysis gives you an opportunity to know the products and services your business is unable to offer. This may be due to lack of logistics or resources. You may acquire these resources from your competitors or merge with them in order to offer those products and services.
6. Set Yourself Apart from the Competition
Every successful business has a set of value propositions that make them stand apart from the rest. If you don’t have persuasive value propositions, consumers aren’t going to be interested in purchasing from you.
Analyzing your competitor’s value propositions is important because it will help you craft your own.
The competitive intelligence you obtain can provide you with invaluable insight that will improve all aspects from your business, paving the way for explosive growth. With regular competitor analysis, your business will be able to cope with the existing stiff competition in the market.