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4 reasons why you should do regular competitive analysis

Svitlana Domanchuk
Author: Svitlana Domanchuk
Views: 2634
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September 2018

Companies operate as long as they are able to meet requirements dictated by external environment. If they can no longer do it, more efficient systems replace them. So, how to secure a foothold in a tough competitive market?

We all know that Steve Jobs and his iPhone almost ruined BlackBerry. The events took place back in 2007, becoming a turning point for the entire smartphone industry. BlackBerry did not add new products to its line which pushed it to the verge of bankruptcy.

Current business environment is ever-changing which, in turn, makes the competition even more complex and unclear. These changes are associated with new technologies, products, services, materials, and equipment. 

Flexibility and awareness are two cornerstones of success of the companies that wish not only to survive in the market but also move forward and prosper. Thus, systematic comprehensive information on the state and potential changes taking place in the competitive environment are critically important. 

Competition is a crucial driving force which makes the economy function and develop. Etymologically, the word «competition» dates back to the Latin «concurrentia», meaning «collision», «contest» and/or «rivalry». 

Ukraine had been developing outside the global trends for many years. In light of this, there was a significant lack of knowledge and understanding of how to participate in market competition at the dawn of a business era in our country. Examining the Western patterns and techniques is not always helpful due to the existing differences. With that in mind, Agency of Industrial Marketing (АІМ) approaches each analysis on a case-by-case basis picking the research scope, methods, techniques, and tools individually.

Why is regular competitive analysis so important?

1. Map Your Company’s Competitive Position

A company’s competitive position (services or goods), its share in the domestic and world markets can only be identified by comparing them with the competitors. 

Another vital aspect which should be mentioned is that the market share indicator remains static only at a certain point in time, since the market environment is constantly changing. Accordingly, AIM’s experts provide the customers with monthly, quarterly, and annual analytical reports and surveys. With certain companies, we have been in partnership for over five years. 

2. Build Your Competitor Chart

Competitor insights include information about competitors and quantitative indicators. The following two are the key ones:

 ○ Occupied market share;

○ Market share dynamics.

The competitive analysis allows to get a clear picture of what is actually happening in the market of your specific industry.

3. Work Out Your Competitive Strategy

To maintain a dynamic balance with the outside world and understand internal and external changes, the companies need to adjust to the changing demands in a more efficient manner than their competitors or turn these circumstances to their advantage. In order to achieve that, successful companies have to work out a clear action plan on where and how to channel their resources and master the most efficient ways for development and interaction. 

A competitive strategy is aimed at outperforming the competitors in terms of achieved results. 

4. Win Your Competition

Victory is what every company strives to achieve in its daily struggle for the market share. It can never be accidental, for the business follows its own strict laws. Continuous efforts coupled with competitive analysis will keep the companies at the forefront. 

In a real-case scenario, it is pretty challenging to have full-time employees who can do the competitive analysis in a professional manner, determine market shares of the key players, and identify the company’s market position. In this case, contracting an expert who knows regional and industry specifics of your niche like the back of his hand will be the best solution. 

Comprehensive practical expertise of the analysts at the Agency of Industrial Marketing covering industrial markets in 19 countries worldwide, own expert network, along with the highest standards of research are what makes AIM’s data so reliable. Thousands of successfully completed projects earned our company a reputation of an expert. Aside from that, we can apply hands-on experience in the industries we already cover in the new markets in order to achieve quick and high-quality results.

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