Opportunities & Threats – Market Analysis
How to Complete a Competitor Analysis Report (Part VI)
The following is the final 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 evaluate external market forces beyond the competition with a competitor opportunities and threats analysis and develop action points for your company to win in your unique market. You may follow along by downloading the complimentary competitor analysis template.
The Market Outlook
In one of the final steps of your competitive analysis, we’ll take a look at external factors that may affect your company. Although it’s entirely possible that there isn’t much you can do to alter these factors, it is important to be aware of them so you can begin any product development or necessary changes to your business strategy and product roadmap. These factors could include new laws passed in your industry, technological changes, environmental factors that could affect your supply, etc. It’s important to analyze all the conditions surrounding your business. They can lead to product innovation, regardless of whether they are related to the competition or other external factors.
First take a look at legal concerns and movements in the political landscape. These may force you to alter your business model for the future. Are there new laws being discussed that will alter your business operations? For example, the automotive industry will need to begin meeting increasingly higher global emissions standards. Make sure to analyze political forces beyond your home country, especially if your company is planning to expand outside of the country anytime soon.
Changing economic environments may put pressure on your company. Use data such as industry association reports or annual State of the Industry reports from McKinsey to understand if your industry is expected to grow or decline. This can help you develop more accurate sales forecasts or more closely match your supply to expected demand. These reports may also be able to help you understand new customer demographics you should begin to target or give you ideas for future product offerings.
Companies that don’t evolve will die out. As mentioned above, you may discover an innovative product solution through your market analysis. Analyzing developing and declining technology will give you an idea of where you company should be moving forward. If you’re watchful and creative, you may be able to secure an early advantage.
Attitudes and social demographics are always changing, and social norms often follow technological trends. it is much more common to communicate by text than phone call. Stay current on new social norms or lifestyles to keep your marketing and product strategy fresh and modern. For example, the retail industry is discovering that reaching customers at the POS with a targeted push notification is often more effective than a static email.
Opportunities & Threats for your Company
Use each section of your completed competitive analysis, specifically the summary pages, to develop a realistic outlook of the opportunities and threats facing your company.
If your marketing & messaging analysis revealed your competitor is expanding quite strongly into one of your key markets, this could be a threat. Make sure to keep this on your radar and continue to track their growth and movement moving forward. Likewise, if your pricing analysis revealed your company’s pricing is not in line with the industry standard, you may want to evaluate if customers perceive your product value to be significantly higher or if you should reassess your pricing. In the competitor strengths and weaknesses analysis, if you noticed your competitor’s customers are dissatisfied with their product, this could be an opportunity for your company to fill that void.
Develop action points for your company to improve and better compete with the competition and win in your unique marketplace. After you’ve completed this analysis, return to your Executive Summary, and map out your key takeaways and company action point.
Congratulations! You’ve completed your Competitive Analysis!
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