Corporate Competitor Analysis
How to Complete a Competitor Analysis Report (Part II)
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 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 same category, for example, McDonald’s and BurgerKing 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.
Replacement competitors are a different product and different category. Following the example above, a frozen meal. A replacement generally only meets 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. 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 competition’s LinkedIn to determine the number of employees and company location. Other online resources such as CrunchBase or AngelList, for startups, 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 and, potential action points for your company, noted as opportunities and threats.
Next, learn how to complete the Product & Pricing Analysis