3 Objectives of Competitive Analysis in Business

Competitive analysis becomes increasingly vital as your company expands. Most businesses undertake competitive analysis at the product, strategic business unit, and even corporate levels.

Competitive analysis can be used for all of the many aspects that make up an organization because of its nature. As a result, the goals of competitive analysis are wide, yet they are equally relevant for a small business or a giant corporation.

Competitive analysis has three main goals. Each of these can be considered a stage of competitive analysis in and of itself. This is something I'll talk about later in this article.

1. Recognizing comparable benefits

When you examine your direct competitors, the initial goal of competitive analysis becomes evident. Once you've studied your competition, their products, and their product portfolio, you'll be able to see how you stack up against them in a head-to-head comparison.

This comparative analysis will provide you with insight into two things at any point.

• Where do you stand out from the competition and what are your benefits?
• What are the competitive advantages and where is the competitor strong? Where does he go when he's unbeatable?

The preceding two points ensure that you are always aware of your market position. This research can be utilised at a later stage, at stage 3.

2. Recognizing competitive tactics

When you play chess against the same person over and over, you start to remember their moves. Carrom, table tennis, badminton, and other sports are in the same boat. A man has a signature move. As a result, they say, your best friends are your deadliest foes because they know all there is to know about you.

But, to return to the matter at hand, if you know your opponent inside and out, including their past movements and present market position, forecasting the competition's next move is simple.

You are familiar with your competitors' resources, capabilities, and key personnel. So you also know what the company's employees are capable of. This means that you can predict your opponents' movements. You can beat them if you can predict their motions (unless they surprise you).

The second goal of competitive analysis is to predict what your opponent will do at any given time. This will greatly assist you in the third phase.

3. Picking a strategy

This is the most constant stage of your company's development, yet it's also the most tedious. Whatever direction you choose, you must make 100 decisions before proceeding. In the real world, implementing plans necessitates a significant investment of both money and effort, both of which are difficult to recoup.

However, if you want to stay on top, you must keep going. In essence, competitive analysis' main and final goal is to assist you in determining the best plan for moving forward. You conducted a competitive analysis and a comparative analysis in the first stage. You studied their history movements and current market position in the second stage.

Using the previous two stages of information, you can determine which plan to adopt in order to acquire market share from competitors or push your product to new horizons in the third step.

Overall, competitive analysis has three goals, each of which requires the use of the three instruments listed below.

• Analyze your industry in comparison to others.
• Research your main rivals (whom you want to beat)
• Select the best techniques to outperform your competition and their existing market position.

The three objectives of competitive analysis will always assist you in studying and defeating your competitors, whether you are a little business or a giant corporation.

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