Analysis of competitors is important?

Discussion in 'Growing and Managing a Business' started by apexis, Apr 25, 2012.

  1. apexis

    apexis
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    Why bother to analyse competitors?

    Some businesses think it is best to get on with their own plans and ignore the competition. Others become obsessed with tracking the actions of competitors (often using underhand or illegal methods). Many businesses are happy simply to track the competition, copying their moves and reacting to changes.

    Competitor analysis has several important roles in strategic planning:

    • To help management understand their competitive advantages/disadvantages relative to competitors

    • To generate understanding of competitors’ past, present (and most importantly) future strategies

    • To provide an informed basis to develop strategies to achieve competitive advantage in the future

    • To help forecast the returns that may be made from future investments (e.g. how will competitors respond to a new product or pricing strategy?

    Questions to ask

    What questions should be asked when undertaking competitor analysis? The following is a useful list to bear in mind:

    • Who are our competitors? (see the section on identifying competitors further below)

    • What threats do they pose?

    • What is the profile of our competitors?

    • What are the objectives of our competitors?

    • What strategies are our competitors pursuing and how successful are these strategies?

    • What are the strengths and weaknesses of our competitors?

    • How are our competitors likely to respond to any changes to the way we do business?
     
  2. Navida

    Navida
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    Competitor analysis is very necessary for prediction of every step. Competitor action or reaction can make a great impact on your decision, so before making any strategy this factor should be consider.
     
  3. Mark T

    Mark T
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    Competitor analysis helps in identifying the current market competition among other businesses, their current status, possible strategies, which you may use as well in developing and strategizing for your company benefits.
     
  4. Elma

    Elma
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    Competitor analysis can give us much useful information as well.
     
  5. firstchoicecar

    firstchoicecar
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    Well Competitor analysis is very helpful as you enter in business, By analyzing your competitor you can learn from them and you can get a lot of benefits.You can make more ideas that are better than your competitor.
     
  6. eKindom

    eKindom
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    Yeah, competitor analysis is beneficial for increasing one's own business. one can get useful information from it, adsorb many things and also inspire new thoughts about developing business.
     
  7. AshleyWhiteBusin

    AshleyWhiteBusin
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    A good competitive analysis can save many man-hours of research work - and there is no recouping costs for work that has been done to create the wrong solution
     
  8. jcworlditsme

    jcworlditsme
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    I would say that, in today's world, knowing your competition is vital.
     
  9. band

    band
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    It is important but not encourage to spend to much time, because build your own product to fulfill customer need is priority.
     
  10. Krisz Rokk

    Krisz Rokk
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    Know your competition, learn the successful things... you might consider joining forces. Strategic alliances can be very powerful and both businesses can benefit from.
    It's a possibility to consider.
     

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