Competitor analysis is absolutely essential if you have to grow in a competitive market. It is becoming increasingly important because of rise in competition in each and every sector. Whether electronics, automobiles or FMCG, each sector today is facing immense competition affecting margins and sales. Thus there are some critical steps to be followed by these organizations to outperform their competition. However, they will be able to stand out only when they KNOW their competition. This is where the step by step competition analysis comes in the picture. Here are the 7 steps for competitor analysis
1) Identify current and future competitors in the market – The best way to identify current and future competitors is to target products. Supposing you are currently selling hair oil. You need to know how many branded and unbranded players are there in the market. You need to know if any new company is starting to sell Hair oil or if any current company might stop selling the same. Furthermore, you also need to know how many of your customers prefer some other product over Hair oil. Thus by doing this you know your direct and indirect competition. This is the first step in competition analysis.
