Almost every company operates in a competitive environment. The exception is a company introducing an innovative, unique product. But in all other cases, even a new offer is an improve version of existing services or goods. Therefore, when starting an activity, an organization actually becomes a participant in indirect competition. And in order to competently build a marketing strategy, a comprehensive analysis of the company’s competitive environment is require. This is exactly what we will talk about in detail in this article. We will reveal the topic, and also give answers to the most pressing questions.
Why analyze the competitive environment
The term “competition” refers to the economic sphere. The concept is interprete as rivalry, which subjects of market special database relations enter into with the aim of achieving better conditions for the implementation of commercial activities. In other words, this is a struggle for consumers of goods or services, that is, for buyers. And competitive advantages distinguish a company from other companies and attract the attention of representatives of the target audience – potential clients.
When an organization’s competitive environment analysis is ignore, problems arise in finding and making the best marketing decisions.
Such mistakes are common in startups.
Marketers have introduce the concept of “competitive wars”. And this is no coincidence, because competition often really resembles military actions. Participants in market relations reconnoiter the situation, carefully analyze it, think over strategies of behavior, develop tactics for capturing and subsequently holding new positions in a specific segment. In a “competitive war”, attacks and defense, waiting and observing rivals are not uncommon. Sometimes real sabotage is organize.
Although market participants are not always in conditions of obvious confrontation, any organization should have reliable and up-to-date information about whether there are companies conducting similar or similar commercial activities. And in order to determine the goals of the business and its main guidelines, as well as to think through a scheme for future growth, it is necessary to correctly analyze the competitive environment of the enterprise.
Analysis of the competitive environment
It is quite difficult to accurately analyze and preict the likely actions of competitors, especially if the competitive environment includes small businesses that sometimes pursue unpreictable policies. Large firms usually act more clearly, according to certain algorithms and without great risks.
There is a concept of “market flexibility”. This is the relationship between the company and the market, the ability to namjenski razvoj odnosi se quickly respond to changes in the competitive environment, and to take measures taking into account the changes. And to be “flexible”, you nee to conduct a continuous, thorough and in-depth analysis of the organization’s competitive environment.
When adjusting advertising campaigns
Introducing other promotion tools, changing pricing policies, holding new events, expanding product ranges or developing new business areas – any global or minor changes require analysis of the competitive environment and forecasting the market response to the implemente innovations.
It is not enough to simply know what activities competitors are carrying out. It is also necessary to compare in detail the actions of potential or real rivals, to study them taking into account the real market situation. Only a comparative in-depth and comprehensive analysis will help to make a forecast of the development of the situation in a specific organization and on the market, as well as to determine effective channels for attracting clients.
The analysis of the main aspects of the competitive environment can be detaile or global, prospective or short-term. The study of competitors’ activities can be carrie out in separate areas or in full, taking into twd directory account the general concept of the business, the history of its development and other factors. Competitive analysis can involve forecasting for years ahead or for the near future, within the framework of solving short-term problems.
