From the course: Marketing Strategy: Competitive Intelligence

The benefits of competitive analysis for business growth

From the course: Marketing Strategy: Competitive Intelligence

Start my 1-month free trial Buy for my team

The benefits of competitive analysis for business growth

“

- [Narrator] Before starting a competitive analysis, you'll want to pinpoint the benefits. Why will you spend time allocate employees and make the monetary investment? Let's start with some obvious reasons. First, you can understand the market and compete more effectively. Think of your competitive analysis as a scouting report. The intelligence you uncover helps you to better define the market landscape. It's why Coca-Cola has a clear picture of how Pepsi competes against them. They've identified important activities, trends, and market factors. Yet, it's not just scouting out competitor activities, it's also realizing any of the market challenges you may face, including, technological or regulatory obstacles, the maturity of your industry, and the possible barriers to entry. You can also find potential partners and collaborators in the market. For example, competitive analysis led Nike to see Apple as a potential partner to tap into the growing wearable technology market and enhance their fitness offerings. They developed the Apple Watch Nike series. A second benefit is to capitalize on your competitors weaknesses. When you discover and evaluate your competitor's strengths and weaknesses, you can compare the research to your own company's market positioning and the growth of your products. You can learn from competitor missteps. There's a reason why Reebok is a good choice among consumers for running and walking sneakers. However, Nike is the superior choice in the market. A competitive market analysis helps you to strengthen your position while taking advantage of your competitor's shortcomings. Perhaps your competitor doesn't have a robust marketing engine to reach customers. For example, at one time, Reebok lacked the digital building blocks needed to effectively compete against Nike. Through competitive analysis, you have an opportunity to do more and to do it better. You're listening, watching, and learning how the market is reacting. Notice when the competition's customers have a great experience or a negative one, which means there's more room for a better experience with your brand.

Contents