The ABS Institute delves into why this kind of analysis could be vital to the survival of your business.
Firstly, what is a competitor analysis?
A competitor analysis helps you to understand how your own business compares to your competitors. Your business can do this by evaluating its strengths, weaknesses and opportunities through your branding and messaging to retrieve insights that can be implemented to improve your
business.
If you’re just starting your self employment journey and want to start your own business, have just created a new business, or want to invest in the growth of your current business, a competitor analysis is a great way for all businesses (no matter what stage they are in) to take stock of what you’re doing right and what could be done better.
It is also crucial to continue evaluating your competitors even after your brand is well established due to the changes that can arise in every industry. It is likely that if you are known throughout your own industry, that competitors will most likely be conducting these kinds of evaluations on your business.
What are the benefits of a competitor analysis?
● Allows you to recognise your product’s unique value proposition and what makes your product different from your competitors, which can then inform future marketing efforts.
● You’ll be aware of what your competitors are doing right and how you can adapt this strategy and use it to your advantage.
● It’ll also outline what your competitors are doing wrong, which will help you identify opportunities in the marketplace to try new and unique marketing strategies.
● You’re able to discover every aspect of how your competition works, being able to identify potential opportunities where you can outperform them.
● Customer reviews of a competitor’s product will tell you what they’re missing and what you could potentially add to your product to meet those needs.
● It enables you to consistently stay on top of industry trends, ensuring your product meets and exceeds industry standards.
● Gives you a benchmark that you can measure your growth against.
How do you conduct a competitor analysis?
We’ve conducted thorough research on what is involved in performing a thorough competitive analysis and found that HubSpot provided a detailed step-by-step list:
1. Determine who your competitors are.
2. Determine what products your competitors offer.
3. Research your competitors’ sales tactics and results.
4. Take a look at your competitors’ pricing and any perks they offer.
5. Ensure you’re meeting competitive shipping costs.
6. Analyse how your competitors market their products.
7. Take note of your competition’s content strategy.
8. Learn what technology your competitors use.
9. Analyse the level of engagement on your competitors’ content.
10. Observe how they promote marketing content.
11. Look at their social media presence, strategies, and go-to platforms.
12. Perform a SWOT analysis to learn their strengths, weaknesses, opportunities, and threats.
How can ABS help your business?
If you’re interested in finding out more about how you can understand your competitors and improve your business, the ABS Institute can help!
We offer small business courses Perth business owners can’t get enough of! There are several training programs and courses for those thinking of starting their own business or who want some advice on how to grow their current business.
We also provide business advice sessions that can assist you in areas that you may be struggling with, including:
● Improving your commercial viability
● Advice on a range of other small business-related matters
● Referral to small business support networks
Visit our website today to learn more about how we can help your business thrive.
