Competitive Analysis
Importance
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From your client's perspective, ask why they should pick you relative to all the other choices they have available to them.
- Differentiation means the additional value you offer through a distinctive product or service, not just standing out from the crowd.
The Competitive Analysis
The
competitive analysis is a study of the competitive firms and professionals in your market space. The market segment sets the context for the competitive analysis which includes identifying the competitive players, understanding their brand and evaluating their performance in terms of market share.
The competitive analysis should allow you to create a roadmap to navigate the competitive environment and identify opportunities for yourself. To accomplish this, the competitive analysis addresses both "macro" level and "micro" level issues. This will help determine how you position yourself in the marketplace in order to distinguish yourself from your competitors, and deliver superior value to your clients. An awareness of your competitors market share also helps set expectations of your own performance.
The Competitive Environment
The "macro" analysis encompasses the opportunities and threats in the competitive business environment. The goal is to identify and quantify competitive trends in your market space. This includes identifying how changes may affect market activity or cause new competitors to exit or enter your space. Given the depth of your market segment, you will want to assess how competitive the market is and how the pie will be divided to support all the players.
The Competition
In the "micro" analysis, you want to identify specific competitors and gauge their businesses with respect to your market segment. You want to specify who and what you are up against. Since it is important to know how your competitors are measuring up, you will want to calculate their market share and evaluate their strengths and weaknesses. Factors to consider for key competitors include the following:
- Value Proposition
- Brand Strategy
- Marketing Tactics
- Effectiveness & Client Satisfaction
- Capacity and Operational Capabilities
- Organizational Support and Environment