In the competitive world of business, success requires offering superior products, boosting sales, captivating customers, and outperforming rivals. To achieve this, gaining essential insights about your competitors is paramount. First of all, who are they? How are their products performing compared to yours? How can you make your brand stand out and entice prospective customers into buying? All these questions can easily be answered by a thorough and well-put-together competitor analysis report.
What is a competitor analysis report?
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A competitive analysis report provides valuable insights into competitors’ activities, strategies, strengths, and performance. Businesses utilize this tool to enhance their performance and gain a competitive advantage in the market.
Benefits of the competitor analysis report
Aside from simply letting you know what your commercial rivals are up to, the report also does a lot of other things that would be highly beneficial to your business.
It lets you visualize where your business stands in the market
A good competitor analysis shows you at a glance where you stand in the market in comparison to your main competitors, giving you a better perspective in planning your next moves.
It renders information related to market trends, customers, and potential opportunities
Conducting a competitor analysis is a valuable exercise, not to undermine rivals, but to improve your enterprise. By studying your competitors’ strengths and weaknesses, you can build on their successes and avoid making the same mistakes. It requires extensive research, including perusing business reviews and websites, and sometimes even posing as a customer to access crucial company information. The insights gained from this analysis significantly impact your business strategies and decision-making process.
It reveals your competitors’ strengths and weaknesses, as well as your own
The objective of conducting a competitor analysis is not to undermine your rivals but to enhance your own business. By studying your competitors, you can identify their strengths and leverage them to improve your strategies. Simultaneously, you can learn from their weaknesses to avoid making similar mistakes, thus positioning your enterprise for growth and success.
Main components of a competitor analysis report
In analyzing your competitors, you need to take a look at all the information relevant to their business performance. For each of your main competitors, you must include detailed product information including use and positioning, target customers and a brief profile of each, possible user scenarios and how they approach these scenarios, marketing strategies, and so on.
Overview of the Competitor
This includes the competitor’s name, a brief background of their business, where they operate, and so on.
Target customers
Since you are competitors, you likely have the same target demographic but with some analysis, you might discover that there are some distinct differences as well.
Products or services
List their products or services that are similar to your own, comparing their quality. You can even try out their products to see for yourself what makes them sell and give an honest evaluation of what you think.
Marketing strategies
How do they market their products and services? Do they offer discounts or promo bundles? Are their prices consistent across all sales channels? Do they have a strong social media presence?
3 Types of Competitor Analysis Framework
There are various types of competitor analysis frameworks that businesses can use to gain insights into the competitive landscape. Here are six common types:
1. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
Purpose: SWOT analysis is a foundational framework that assesses both internal and external factors affecting a business. It identifies internal strengths and weaknesses and external opportunities and threats.
Application: Businesses use SWOT to gain a holistic view of their competitive position and make strategic decisions based on the insights derived from each category.
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2. Porter's Five Forces
Purpose: Developed by Michael Porter, this framework analyzes the competitive forces within an industry to understand the overall attractiveness of that industry.
Five Forces:
- Threat of New Entrants
- Bargaining Power of Buyers
- Bargaining Power of Suppliers
- Threat of Substitute Products or Services
- Intensity of Competitive Rivalry
Application: Businesses use Porter's Five Forces to identify factors influencing competition and adjust their strategies accordingly.
3. Strategic Group Analysis
Purpose: This framework groups competitors based on similar strategic choices, market positioning, and competitive approaches.
Application: By understanding the strategic groups within an industry, businesses can identify areas of opportunity and potential
How to use the competitor analysis report template with Boardmix
The template that we have here at Boardmix has an organized design that makes it very easy to use and analyze. Before you begin, make sure that you have done your research and have all the information available.
The main body of the template is divided into 5 main sections, which are for the competitors, product positioning, user analysis, scenarios and requirements, and business model. Simply plug in the information that you have obtained from your research into the right sections.
The report’s lower section is divided into two parts. On the left-hand side, you will find the pros and cons of the competitors, while the right-hand side contains a summary of the entire report.
Boardmix is an innovative online whiteboard solution that can be used to revolutionize the way you conduct competitor analysis reports. With a plethora of drawing templates at your disposal, Boardmix allows you to visually map out and compare your competitors' strengths and weaknesses with your colleagues in real time. Unlike traditional methods, Boardmix simplifies the process by providing a collaborative platform where teams can brainstorm, strategize, and analyze together. No more back-and-forth emails or disjointed communication; with Boardmix, everything you need for comprehensive competitor analysis is right at your fingertips.
Step 1. Sign up or log in to Boardmix and go to workspace.
Step 2. Click the + icon to create a new board.
Step 3. From the pop-up window, find an appropriate template like the Competitor Analysis Report.
Step 4. Hover your mouse on the thumbnail, then click Use to apply the template.
Step 5. Then you can fill the competitor analysis report with your case.
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Step 6. You can also click the Share button to share the board with your colleagues and collaborate on the board in real time.
Tips and best practices to get the most out of the competitor analysis report
When identifying the competitors to include in the report, many only focus on the direct competitors, although there are a few other kinds that are important as well. Make sure you include your secondary competitors and substitute competitors as well.
FAQ about the competitor analysis report
How to find the needed information for your competitor analysis report?
Thorough research is essential to gather all the necessary information for a comprehensive and valuable report. This involves examining business reviews, visiting competitor websites, and, in some cases, adopting the role of a customer to access specific company details. Such diligent investigation ensures a well-informed competitive analysis report.
