Competitive analysis is also one of major business tools of strategic management process. Competitive analysis provides offensive and defensive context through which competitor’s strengths and weaknesses can be identified. However role of competitive analysis can be considered as:
- Competitive advantages and disadvantages can be understood by competitive analysis.
- Also helps to understand past, present and future strategies of the competitors.
- Helps to formulate business development strategies in the competition of competitors.
- Let the business management forecast different conditions of business including Financial, operational etc.
Following questions should keep in mind while conducting competitive analysis:
- Who are your competitors in the industry in a particular industry?
- What is the complete profile of your competitors?
- What are the goals and objectives of your competitors?
- What are the business strategies of your competitors and how they are successful in their strategies and policies?
- What include in the strengths and weaknesses of your competitors?
- How your competitors respond to major changes in the market?
- What are the threats you prone from your competitors?
Almost all business would like to know different positions, conditions and situations of their competitors that include:
- Overall sales and profit
- Sales and profit by market
- Sales by main brand
- Cost structure
- Organizational structure
- Market shares
- Distribution system
- Profile of senior management
- Customer retention levels
- Sales and profit by product
- Distribution costs
- New product strategies
- Size and quality of competitor’s database
- Future investment strategies
- Marketing and advertising strategies
Anyone who is trying to grow up a new business must map the competitive landscape. Companies should not rely on casual information about competitors but they must try to know each and everything that is important to predict competitor’s behavior in the industry. Wise business decisions can be made if companies focus on knowing about competitors:
Basically these four are components of a competitive analysis and all business must focus on knowing about these for making successful business strategies.
Free Competitive Analysis Templates
Here are previews and download links for these Competitive Analysis Templates.
Here we will discuss an approved criterion to conduct a website competitive analysis. A website design company is going to design a new site or portal and management want to know whether their website can stand up in the tough competition of website designing. Let’s see who and what will be analyzing in website competitive analysis. Things that you should analyze while taking website competitive analysis are:
Home page: How homepage of competitor website is informative, user friendly and does it set the proper context for users. Downloading speed will also be analyzed.
Navigation: Is navigation of the competitive websites is consistent and convenient to visitors?
Site organization: It would also be evaluated how much site organization is understandable?
Links and Labels: Are labels and links of the website are ambiguous and easy to understand.
Search and search results: Is website offers easy and advanced search options to access the desired content of the website? Are search results organized and easy to understand?
Readability: How is the readability of the website? It should also be analyzed that line length is acceptable.
Performance: Do pages of the website download quickly and in an easy way? Are graphics and other applications of the website are designed in the best way?
Content: Is content of the website matches with the mission and purpose of developing website? Is website is capable to meet the needs of company and its customers regarding easy and quick access to information and updates?
Rating can be determined to get answer of all these questions and parameters of website competitive analysis for example:
- 1= bad
Comprehensive report of findings and results of competitive analysis is also prepared to give this research a documented form. This analysis report is used by decisions makers to formulate the important business strategies for business establishment and even growth as compared to competitors of the industry.
If you are working as usability engineer or information architect, taking a comprehensive competitive analysis is very important. However a good analysis and subsequent report of analysis will let the business management make wise decision for present and future business development and growth. If you claim to be a strong competitor of the industry, you will have to be conscious about knowing the strengths and weaknesses of the rivals for reputed and long term establishment of your business.