Competitor Analysis

Competitor analysis is an integral part of the strategic planning process which is critical to understanding the industry in which a company competes and the dynamics of the marketplace. Competitor analysis is critical, not only for established companies, but also for new business start-ups. Often times a competitor analysis is required by lenders as part of developing the business plan.

SPG can set you apart from the competition. SPG can set you apart from the competition.

Competitor analysis is important for several reasons including:

  • To gain knowledge of the marketplace in order to achieve competitive advantage
  • To gain a better understanding of competitors’ current and future strategies
  • How are competitors likely to respond to changes in new product or service offerings of your business?

If your company does not know the following information about your competitors, you may be missing out on ways to improve your competitive advantage in the marketplace.

  • Sales and profitability, especially by product line
  • Cost structure
  • Market share
  • Organizational structure
  • Distribution system
  • New product strategies
  • Customer satisfaction levels
  • Advertising and promotional strategy