Almost every product you can think of is getting sold off by someone else. It is both good and bad for you, here is how, if it’s a race it’s good as it will be a strong agent for user demand. Where there is trade there is a possibility for growth and ongoing products. Otherwise, we wouldn’t have the Horlicks versus Complan argument.
Now the challenge is that you have to share the same consumers and the playing field such as sales channels, marketing tools with another online store. The question is how do you stand out? How would you convince the customer to stick with his or her decisions while buying the same product that is available in the next shop besides you A well-mapped competitor analysis can help with that.
What Do You Mean By Competitive Analysis?
Every market has its own way of launching similar products and services to the same section of buyers. competitive analysis helps in finding out the main market player and their strategy to succeed. it also helps you identify resources that your company could use to control the market.
The market-based view (MBV) strategic framework shows that a company’s play is solely based on the structure and competitive dynamics of the enterprise. It also enhances your brand reputation.
Porters’ five forces model, which gives a view on five foremost sources that add competitive discipline to your industry. While you analyze, it gives you an idea of a better understanding of the target market and prepares you for launch.
What Are The Steps To Do Competitor Analysis?
The goal of a competitive analysis is to provide you with insights to notify your product development and marketing decisions.
Here are 5 steps of how you can do competitor analysis.
Competitors To Identify
To conquer a mountain, the first you need to do is decide which mountain you are going to climb and what tools you must use.
In an e-commerce business, the direct competition provides the same products to a similar target market both demographically and geographically at a similar price spike. Straight competition is the first contender you should parse for your own brand. It helps to fulfill two purposes
Evaluate Product Viability
Goods like this are probably in demand if someone else sells them.
Estimate Entry Barriers
When there is direct competition, it sets the bar for entering the market. Suppose your competitor’s product is priced 10 bucks, you won’t be able to sell the same product with the price tag of 20. If you want to then you must add a twist to the product.
- >Try a search engine result (SERPs) for similar products doubt.
- >Be familiar with the market share tactics by using an app called Statista or another similar root
- > Look for the suppliers who are sourcing products which you plan to use
- > Take a note of the brand your target buyers use during interviews.
As simple it is to notice the direct competitors, it is also simple to miss the indirect competitors.
Indirect competitors are those who are online sellers offering products that are different in some way, but they can also satisfy the customer demand.
For example, both Bare denim and levis sell the same product. But Levi’s focuses on how to use the product for a longer period of time, they make recycled jeans. On the other hand, bare denim sells jeans with many color variations, they both meet the needs of the buyers but with their own brand techniques.
Choosing to visit the replacement route can seem challenging, especially when you face a bigger challenge. The investment you do in your product will go in vain if you are not able to validate your product’s viability.
Perform A Competitor SWOT Analysis.
This analysis can be very helpful for you to stack up against other businesses. Analyze the strengths, weaknesses, perspectives, and threats after lining up several direct competitors.
Make sure you cover all the areas mentioned below.
- >ecommerce website
- >brand positioning
- >customer experience
- >sales strategy
- >promo strategy
- >shipping strategy
- >content strategy
- >pricing strategy
- >Marketing strategy
Determine Your Competitors’ Market Positioning
Your core differentiator from others should be competition positioning. This data is easy to pull the sheets from when you assess the indirect competition. Their solution will always be different than yours.
That difference is for their unique value proposition, a factor that attracts a new customer. every brand needs a customer like this to gear up for success.
Get To Know The Technologies Your Competitors Are Using.
Technology may seem like a tangible forte any brand could obtain. But we often miss the point that technology is an enabler.
Competing business can rely on the related e-commerce platform but you must configure and spread it to create a sole brand experience (intangible asset)
Review Feedback And Performance From Social Media
Social media is a goldmine for the voice of customer information that you can grip for product development and brand positioning. It is a platform where one can get better with their products due to comments the customers give about the product.
Social media like Facebook, Instagram, Reddit, Twitter, are fluently used by marketers and customers.
The Tools And Methods Used For Staying Aware Of The Competitors.
To revisit the competitor’s research structure in the future, follow the competitive analysis framework
- > porter’s five force model
- >resource-based view framework
- >SWOT template
Competitor’s analysis not only teaches you to learn about others but also gives you opportunities where your brand can excel. To get a set of intangible assets that is the basis of your contractor. Market knowledge, personal expertise, field expertise, marketing, and brand skills, they all count! Remember each of them while you compare yourself against the competition.
- >sharing channels
- >product span
- >stock features
- >online shopping experience
- > creative tech features
These are the insights that you should analyze and do better than others.