Competitive analysis involves assessing rivals’ strengths and weaknesses to inform strategic decisions and gain a competitive edge in the market. By understanding competitors’ offerings, pricing strategies, and market positioning, businesses can refine their own strategies for success.

HubSpot contributor Christine White has published an article explaining competitive analysis and how to conduct it. 

She says, “If you’re on the fence about investing time and effort in analyzing your competitors, know that it gives you a complete picture of the market and where you stand in it.

Here are four main reasons why I perform a competitive analysis exercise whenever working with a brand for the first time:

  • Identify your differentiators. Think of competitor analysis as a chance to reflect on your own business and discover what sets you apart from the crowd. And if you’re only starting out, it helps you brainstorm the best opportunities to differentiate your business.
  • Find competitors’ strengths. What are your competitors doing right to drive their growth? Analyzing the ins and outs of an industry leader will tell you what they did well to reach the top position in the market.
  • Set benchmarks for success. A competitor analysis gives you a realistic idea of mapping your progress with success metrics. While every business has its own path to success, you can always look at a competitor’s trajectory to assess whether you’re on the right track.
  • Get closer to your target audience. A good competitor analysis framework zooms in on your audience. It gives you a pulse of your customers by evaluating what they like, dislike, prefer, and complain about when reviewing competing brands.”

What is a Competitive Analysis — and How Do You Conduct One?

HubSpot
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