Competitive analysis represents the analysis of the behavior and products of competitors in a defined market. In addition to the consolidation of the own competitive position, the aim is to anticipate the future behavior of competitors.
Only those who know their competitors can stand up to them. Often some competitive information is available within the company, but is not systematically bundled, processed and used in sales.
A professional competitor information system is therefore the basis of any competitive analysis and should answer the following questions:
The information to fundamentally describe competing companies (“Who are our competitors?”) includes the organizational structure and ownership structure as well as the interrelationships with other companies. Answers to the question “Where do our competitors stand in the market?” are provided, for example, by data such as market shares, distribution levels or image. The strength of competitors can be described by the quantity and quality of resources in different areas. This serves as a further indicator of the level of threat that a competitor may pose. The question “Where do our competitors want to go?” mainly concerns statements about targets, budgets and schedules of the competitors.
Finally, data on the market development of competitors must be collected. Among other things, it relates to various aspects of sales management and the design of customer relationship management.