Competitor analysis

A competitor analysis allows you to determine your company's biggest competitors and how they operate. The analysis also reveals your competitors’ goals, and strategic strengths and weaknesses. It also allows you to determine how your competitors react to the activities of other companies, and the changes in the industry and operating environment.

Once you know your competitors and are able to anticipate how they act, you will be able to find out which is the best way for your company to succeed. This makes it easier for you to plan your company’s operations, products and marketing. The analysis also helps you identify your company’s success factors and development targets. It allows you to save costs and improve customer satisfaction, which also improves your company’s profitability.

The importance of the competitor analysis is emphasised at the establishment stage when your company is still searching for its place among its competitors. However, you should keep an eye on your competitors to make sure your company will be able to retain the competitive advantage it has achieved in the market.

Find out who your competitors are in your company’s market area and get as much information about them as possible. You can search information on the company’s website, annual report, financial statements, and public customer feedback.

Use the information you have collected as basis for assessing your competitors. Find our issues such as their market position, strengths and weaknesses, financial and other resources, and marketing approaches. Also get to know their service selection, product features, price level, service quality, and security of supply.

Reflect the assessments and observations you have made on your competitors with your own company. Aim to find a niche in the market for your company and target your business accordingly. Try and find ways that sets you apart from other companies and makes customers choose your company instead of your competitors.

You can find help for preparing a competitor analysis from your regional business development company, business consultants, and business advisors. You may have to pay for the services. You can also commission the analysis, for instance, from a business student working on their final thesis.