Market analysis is an integral part of running a successful business. It allows you to understand how your competition operates as well as any weaknesses they may have. It also allows you to uncover your unique selling points, and the steps you can take to gain more customers. In a saturated market, this can mean the difference between success and failure.
Gather Data about the Market
The first thing you need to do is gather data about your market and the competition you have. Your business depends on attracting customers, so you need to be clear on who you are targeting and why. Analyze competitor social media pages, marketing campaigns, and websites.
A good example of a highly competitive market would be the casino sector. If you search for the best roulette games online, you’ll come across a range of titles, including Live Lightning Roulette and Mega Roulette.
Even though the games are similar across different websites, each provider, however, offers different bonuses and promotions. They also stand apart because of the customer support options they offer, which helps them to gain an edge in a competitive landscape. This is just one example, but it shows that even if you have a lot of competition., it’s always possible for you to stand out, you just need to understand your audience and what they’re looking for, so you can make your brand more favorable than your competition.
Review sites can be a good way for you to pinpoint competitor weaknesses so you can find out where they fall short. You can then use this to your advantage by making it your company’s USP.
It’s also important to know the difference between indirect and direct competitors. Ideally, you should be focusing on direct but don’t overlook indirect. If their business grows with time, they may end up becoming direct, which would pose a threat to your company model.
Evaluate and Benchmark
Take note of your competitors and the identity they have. Do they have a commanding online presence? How is their branding? Is it consistent? What does their color choice say about them? What about their tone of voice? Things like this allow you to set benchmarks for your own business. From there, it becomes easier for you to conduct a SWOT analysis. This assesses strengths, weaknesses, opportunities, and threats. It gives you a crystal-clear insight into what you’re doing well, and what you need to work on, so you can increase the quality of your service offerings.
Carrying out a PEST analysis is also a good idea. A PEST analysis assesses your political, economic, social, and technological factors. Things like this can be used in conjunction with other types of analysis, so you can gain insight into the external factors that could be influencing your business and the goals you are trying to achieve.
So as you can see, conducting a competitor analysis is the key to success in business, and it can be used to guide any future decisions with confidence.
