How to do Market Research on Competitors
When it comes to competition in business, understanding your competitors is just as crucial as understanding what your customers want. Competitor market research enables companies to identify potential threats, discover new opportunities for product positioning, and improve pricing, distribution, marketing, etc. If executed correctly, the research provides organizations with information they need to make informed business decisions based on the analysis of their competitors’ activities and successes.
Nexus Expert Research assists companies by conducting structured competitive analyses that support future growth and innovation strategies, as well as support the overall business strategies of long-term growth.
What Is Competitor Market Research?
Competitor Market Research is the process of systematically gathering and analyzing data about both current and possible competitors. The goal is to gather information regarding competitors’ products, price point, message, distribution channels, and strengths/weaknesses.
Rather than doing simple observations about who your competitors are, a professional competitor analysis relies on data, frameworks, and market intelligence to develop an objective understanding from analysis versus inference alone.
Why Competitor Analysis Is Essential
Competitors can be analyzed successfully by organizations using effective competitive analysis, which provides insights into how competitors will respond to different types of customer needs, regulatory changes, and emerging trends; therefore, reducing the uncertainty organizations face when it comes to understanding their competition’s actions.
Organizations investing in the research of their competitors will have a better understanding of who they are competing against and a clearer path toward refining their value propositions, developing and implementing better pricing strategies, and confidently entering new markets.
How to Research Competitors Effectively
Before any competitive analysis can begin, there needs to be a clear understanding of who the relevant competitors are and where to find reliable information for data collection. As with most businesses today, there are many sources of information available on the internet; however, it is critical to collect data only from reputable, unbiased, and multiple sources, including but not limited to industry reports, customer reviews, public financial statements, marketing collateral, and online resources, such as websites, blogs, etc.
At Nexus Expert Research, we help our clients conduct a thorough analysis by utilizing various data sources to triangulate information, thus giving them confidence that their final analysis is accurate, reliable, and decision-ready.
Competitor Analysis Steps
Using a structured approach leads to a higher level of quality in generating insights derived from competitive analysis. Competitor analysis is typically carried out through five steps,
- Identifying competitors
- Defining criteria for comparison between competitors
- Collecting qualitative and quantitative data
- Identifying trends within the data
- Developing strategic recommendations based on those trends
These steps will provide a means to ensure that research conducted on competitors aids in achieving specific business goals rather than resulting in random findings.
Using a Competitor Analysis Framework
The use of strong competitor analysis frameworks ensures consistency and depth in the research phase of the process. In addition to providing a means of comparing your competition on the various dimensions of pricing, innovation, customer experience, market share, operational efficiency, and more, it enables you to conduct competitor analysis in the same general way with all competitors.
By having a defined framework for conducting your analysis, you can keep your competitive analysis focused, measurable, and aligned with your strategic goals.
Competitor Research vs. Competitive Analysis
Competitor research and Competitive Analysis have different but somewhat interrelated purposes. While competitor research is the process of collecting information about your competitors, Competitive Analysis is the process of interpreting and deriving strategic insights from that research.
Nexus Expert Research integrates both methods to produce results that provide you with insights that are relevant to your current and future decision-making processes.
How Nexus Expert Research Supports Competitor Analysis
Nexus Expert Research specializes in providing complete competitor research services utilizing industry experience and advanced analyses via various methodologies. Our team develops tailored competitive analysis project plans according to your business’s industry dynamics, size, and proposed strategies.
Utilizing structured analytical frameworks and a team of seasoned experts, we produce quality competitor intelligence that is credible, pertinent, and useful.
Conclusion
A key element of staying competitive in any industry is knowing how to conduct market research on your competition. By following clearly defined steps, using a structured format, and conducting thorough research on your competition, companies can make informed decisions. At Nexus Expert Research, we assist companies in turning their competitive intelligence into a long-term advantage.