Do You Conduct A Competitive Analysis?

One crucial success factor is a thought-out structure of market analysis. Thus, systematic market and competitive analysis, for example, should include the information on market volumes and potential of the product or service. Also, statements for the expected development of market growth help evaluate the market.

Besides, it is important to create a competitive structure overview — the number and type of competitors in the market environment in terms of analysis. Next, illuminate the main competitors as part of detailed benchmarking. For investors and funding bodies, it’s important to be updated here in terms of how the start-up aims to stand out considering the current offers.

The key part of successful market and competitive analysis also defines the target groups. For example, market analysis outlines the customer groups involved, how influential they are, and the needs and requirements of potential customers to be addressed.

Ultimately, a structured market and competitive analysis covers the industry trends and developments, which shows the topics that gain importance in the market over time and how the new company responds to them.

Competitive analysis, therefore, mainly includes competitors based on the market. However, that’s not it, so a relevant checklist is useful. Because, in addition to competitors’ data, having comprehensive knowledge of the market also matters.

Only this way can you get an overview and assess the opportunities and risks. Surely, there are other instruments such as the famous SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) or the paid tools. They’re often sufficient when carrying out a decent analysis of competitors, making notes, and presenting.

Competitive analysis covers these points:

• Direct and indirect competitors named
• Their key features — price, service, quality, and location
• Strengths and weaknesses
• Competitor prioritization — from weak to strong
• Understanding of opportunities and problems in the market based on competition

Above all, resilient competition assessment is what frequently challenges companies. Typical questions here are: how many competitors are there now? Who are the main ones? Are there any substitutes, other solutions, or technologies that satisfy our target customers’ needs? What are the current companies in the market and how successful are they? How do competitors develop, and which trends come as a result?

There are 2 main steps: First, the analysis describes the competitive landscape — the number of providers operating on the market and the division of the same regarding the supply. Next, some of the main competitors are selected and illuminated in a detailed competition analysis. We’ll share an overview of the important key figures, the competitor’s product and service portfolio, the company’s strategic orientation and its strengths plus weaknesses. In direct comparison with the competitors, their strengths can then be worked out.

Key market analysis methods are both secondary research and data collection, also known as primary research. One of the essential sources in secondary market research includes:

A systematic evaluation of search engines like Google: typically, entering an investigation works better for market potential and competitors over a structured search engine research. For this purpose, fitting keywords and topics are defined and then queried. Even if you maintain the context of a market analysis of accidental searches in search engines without a clear research destination, the results are often incomplete regardless of the time spent. Advanced analysts prepare a keyword list or a search plan with the key search terms to insert into the search engine.

1. Company databases: Allow efficient access to competition and customer information. Often, they are chargeable and require professional research for operation.
2. Statistical Publications: Look for the governmental structures in your country charging data on markets, companies, and industries. Portals like Statista also provide information for market research of start-ups and new companies.
3. Technical journals of the target industry: These commonly offer relevant articles on the industry trends, important market providers, or statistical information. Access options suggest trade magazines online (partly restricted), while the more comprehensive ones provide subject-printing databases.
4. Industry fairs: Visiting the relevant industries simplifies market analysis. Here, you’ll face direct exchange with other market participants. Exhibitor Directories online from trade fair organizers can be searched for the possible competitors, customers, or partners.
5. Annual Report Databases: Specialized tools like the Federal Gazette make it possible to conveniently access competitors’ business reports. For example, there are insights into sales development, profitability, employee number, and strategic planning for the next few years.
6. Forums, blogs, and social networks: More companies show up on portals like Facebook, Twitter, Xing, or LinkedIn and publish information about their products, services, and innovations. Also, YouTube now displays an ever-increasing number of videos on companies, trends, and new products of the possible competitors.