There are several methods by which competitor analysis is carried out in business. Let us dwell on each of them in more detail.
SWOT
SWOT is used to study:
business strengths;
his weaknesses;
potential business opportunities;
potential threats to him.
It should be understood tha dominican republic email list strengths and weaknesses characterize the qualities of a specific product, while potential opportunities and perceived threats relate to the market.
The main advantage of this method is its versatility, so SWOT analysis is applicable in different areas and sectors of business.
Some experts believe that using SWOT analysis gives an objective result, since business indicators are qualified by a certain group of people or one person. There is a saying "So many people, so many opinions", according to which people or companies evaluate the obtained result differently. Another disadvantage is the duration of collecting a large amount of data. Experienced marketers do not recommend using SWOT analysis when developing business strategies and new startups. Most often, this technique is successfully used for existing projects that need to make a correction in the direction of development.
"Porter's Five Forces"
Harvard School student, economist Michael Porter, developed this method back in 1979. Its essence lies in conducting a detailed analysis of competitors in business, which is carried out in four stages and is characterized by five main parameters.
At the beginning of the path, the long-term plans and goals of the competitor are determined, their motivation is learned, and then the current strategy of the company is assessed. The next step is to determine the competitor's position in the market. And in conclusion, forecasts of the company's activities are given. When conducting an analysis using this method, the following points are taken into account:
Do competitors have a product that is superior in quality to the one being studied?
Is it possible to replace the product under study with a competitor's product?
What difficulties can you face when entering a business? What amount of capital investment will be required to launch your own business in a specific area?
What is the influence of suppliers on the market situation? Is there a dependence of the success of sellers on counterparties? Who controls the work of businessmen in a specific niche?
How price sensitive is the consumer? Is the competitor's goods readily available?
How many direct competitors does a business owner have? What methods does an entrepreneur use to stay competitive?
How much money does the manager spend on advertising, promotion and attracting new clients?
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