How to Complete a Competitor Analysis Report (Part II)
Corporate Competitor Analysis
Tactics to increase competitive win rate
The following is the second article of a 6-part series aimed at guiding you through conducting a complete competitor analysis report. In this article, you’ll learn how to spot the different types of competition and evaluate your competitors to give you the competitive edge. You may follow along by downloading the complimentary competitor analysis template.
The first step of completing your corporate competitive analysis is to identify your competition. Take a look at your current competition and potential competitors who might enter your market – note any substitutes your customers are currently using or any they could potentially use. Next, give your competitors a rating to define how closely matched they are to you. The rating is used to categorize each competitor into:
- Direct Competition
- Indirect Competition
- Replacement Competition
Direct competitors offer the same product in the same category, for example, McDonald’s and Burger King are direct competitors.
They share an indirect competitor, Subway, which is a similar product, in a different category; indirect competitors are sometimes known as substitutes.
They also share replacement competitors, which offer a different product in a different category. This is a competitor that can replace your products or services by offering a different solution altogether. An example of a replacement competitor for McDonald’s/Burger King could be a frozen dinner company, like Hot Pockets. Replacement competitors generally only meet a customer’s needs in specific circumstances. They should not be ignored, but they do not need to be watched as closely.
Depending on your industry, you may have dozens of competitors. You may want to consider having no more than 5 competitors in each report so you can more closely analyze them.
Once you’ve ranked your competition, write a brief description of each competitor. This description can be in your own words. Later, in the marketing analysis, we’ll take a look at the messaging directly from their website.
Take a look at each competitor’s LinkedIn to determine the number of employees and the location of the company. Other online resources for startups, such as CrunchBase or AngelList, will enable you to complete the rest of the corporate competitive analysis.
The last slide of each analysis section should be a round-up of key facts and observations about each competitor, as well as potential action points for your company, organized as opportunities and threats.
Next, learn how to complete the Product & Pricing Analysis