A competitive analysis template is a document used by the businesses to have a competitive analysis of their competitors and how their products and service compare. With the help of competitive analysis, the company can determine whether their products and services have an edge or a deficiency against its competitors.
Moreover, this analysis allows you to evaluate your competitor’s strengths and weaknesses. By having such data on hand, you can start formulating that how to provide the company an advantage. Competitive analysis is a continuing process and an integral part of the company’s business or marketing plan. It also gives context for growth.
Table of Contents
- 1 Key components of a competitive analysis template:
- 1.1 A complete list of all competitors:
- 1.2 Product summary of your competitors:
- 1.3 Strengths and weaknesses of the competition:
- 1.4 The Outlook of the market:
- 1.5 Objectives of a competitive analysis:
- 1.6 Discovering all the comparative benefits:
- 1.7 Understanding the strategies of your competitors:
- 1.8 Selecting your strategy:
- 2 Using the competitive analysis template:
- 3 Reasons for using a competitive analysis template:
- 4 When should you use a competitive analysis template?
- 5 Conclusion:
- 6 Faqs (Frequently Asked Questions)
- 7 How can you differentiate between a market analysis and competitive analysis template?
- 8 How to run a competitive analysis with your template?
Key components of a competitive analysis template:
To make your analysis complete and effective, you should include the following essential components;
A complete list of all competitors:
At first, you have to make a complete list of all your competitors. You have to assemble all the available and relevant details about these companies. By considering who the chief competitors are, prioritize them. Some can indirectly complete with yours. However, they offer the same products and services in order to grab the same customers, include them in your list.
Those who are planning to enter your market in the near future, include all information about them as well. After that, find out those companies that will provide you the greatest challenge.
Product summary of your competitors:
Here, you have to do research on all the details of the competition’s products and services, their features, their value, their goals. Search for their sales strategies. In finding out customer satisfaction about competitors, a customer survey conducted by the trade press is valuable aids. In addition, ask for the same information from your own sales force. They can be considered as the best source of information about your competition as they are directly involved with customers.
Strengths and weaknesses of the competition:
You have to be objective for evaluation the strength and weakness of your competitor’s product. Ask the following questions;
- Why are they more successful in their sales?
- Why do customers prefer their products?
- What are the factors that cause rapid growth in their company?
To find out your competitors strengths and weaknesses, some sources of information include;
- Analyze your competitors marketing strategies. Press releases and advertising are the two main factors that play an essential role in their success.
- On the competitor’s progress, evaluate quarterly and annual reports. They will give a great deal of information about their strength and weaknesses.
- Interviews with journalists and consultants can be considered precious.
- You can also take into account the competitor’s customers.
For completing the final picture of the competitions strengths and weaknesses, all these sources will involve hard footwork. Keep in mind that your main goal is to nail your competitor down.
The Outlook of the market:
This section includes the current status of the company according to success in cornering the market. Identify that due to a specific product whether the market is growing or not. If so, then innovate to further its growth. If not, then in such case, the competition for the market must be fierce.
To get the share of the company, all companies must be scrambling. This outlook section of the competitive analysis is really a measure of trends. When you have completed your research, you will have adequate information to identify what the outlook really is. Later on, this analysis will act as a precious source of information for your company and your clients.
Objectives of a competitive analysis:
As the business grow, the significance of making a competitive analysis template becomes more evident. The application of the analysis is conducted at product levels, on strategic unit levels, and at company levels. However, the competitive analysis can be applied to all the different factors that make up the organization. The objectives of the competitive analysis are broad but there are three major objectives;
Discovering all the comparative benefits:
This objective becomes evident when involved with direct competition. After studying your competition, their products, and their product portfolio, you may know where you stand against them. This analysis will give you with related insights that are;
- Where you are strong against the competitors?
- What are your advantages?
- Where is the competitor strong?
- What are his advantages?
- Where is he unbeatable?
At anytime, in the market, aforementioned points make you well aware of your position.
Understanding the strategies of your competitors:
While dealing with your competitors through years, you get to know that how they make their decisions. Forecasting their moves on the basis of the past would prove beneficial. Furthermore, you can have information on your competitor’s resources and their capabilities through research. This would strengthen your resolve on decisions you will be making.
Selecting your strategy:
In your business, this is a crucial stage because whatever strategy you take will depend on a hundred decisions. It would include a lot of money and time that can’t be easily recovered. But, if you want the company to progress and move up, there are no other options. That’s why, to move the company forward, the ultimate goal of the competitive analysis is to select the right strategy.
In the first stage, you have to determine your competition and do a comparative analysis. Then, in the second stage, make forecasts on your competition’s decisions. The third and last stage is based on the first two stages. In order to grab the market share of your competition or expand your product to new horizons, you have to make a decision on what strategy to implement. You should also check SWOT Analysis Templates.
Using the competitive analysis template:
Here are the steps to follow for using the competitive analysis template;
Provide your company details
Firstly, you have to provide the high-level information regarding your company like your mission, values, value proposition, an overview of your main competitors, and more. The listed competitors will usually be your direct competitors who provide a comparable product or service.
Explain your product or service details
Here, you have to provide price points of your main offerings and your channels to get new customers. You can specify the information regarding your competitors here if you know.
Collect information regarding the market
This may include the following;
- Your percentage of market share
- Your social media and web presence competitors
- How your company is located in the market
Conduct a SWOT analysis
Next, determine your strengths, weaknesses, opportunities, and threats and then compare it with the competitors you have identified.
State your competitive advantage
After gathering all the above information, state your competitive advantage.
Reasons for using a competitive analysis template:
You can determine what your direct competitors are providing when you review logistical items such as products features and pricing and more qualitative notes. Then, to establish a better business strategy, you can compare these with your own features, strengths, and weaknesses.
Furthermore, competitive analysis makes you able to stay on current industry trends and opportunities. It allows you to understand your competition. Also, you can use the same template for every new project planning and review session.
When should you use a competitive analysis template?
You should use a competitive analysis template in the following situation;
For strategic planning
During larger project planning sessions or long-term goal setting sessions, you should use your template to incorporate details of the competitors into your strategy.
Perform a competitive analysis to identify how to position yourself to improve your launch strategy in case your company is gearing up for a new product launch.
When building a marketing strategy
Customer support is required for backlinks, content marketing, and brand messaging in order to be successful. By reviewing your customer’s support, identify what your customers are responding.
To determine your target market
Determine who buys from your competition in order to know who you want in your customer base. This is an effective way to determine gaps in your competitor’s marketing strategy.
In conclusion, a competitive analysis template is an effective tool that helps you in performing a competitive analysis of your competitors. The three types of competitors are evaluated i.e. direct, indirect, and potential new entrants. After conducting competitive analysis, you should have positive results for your business.
Faqs (Frequently Asked Questions)
How can you differentiate between a market analysis and competitive analysis template?
A market analysis template is used to run an analysis on everything that in full market place impacts your business. On the other hand, a competitive analysis template is used to gauge how you make comparison to competitors.
How to run a competitive analysis with your template?
Do research and fill in the blanks on the following in order to run a competitive analysis with your template;
- The market research number for product features
- Product marketing
- SWOT analyses
This assists you in making full comparison between your business and your competitors.