How to Do Competitor Analysis: 7 Tips

Competitive Analysis is about researching your competitors or rivals and their marketing and promotional strategies, in order to understand:

1. The threats to your business

2. Ways of attracting new customers

3. Possibilities to get more customer reviews

4. Online reputation management, success strategies, and more.

Competitive analysis is critical to your business, since it helps you understand the similarities and differences between your business and the competition. This analysis can help you identify interesting ways to outperform the competition.

Here are 7 tips to run a competitor analysis

1. List Your Competitors

This is the obvious first step. When you have taken your business online, it means that you are competing with many other similar businesses.

You need to know who exactly your rivals are. Make a list of your competitions for analysis.

2. Group Your Competitors

Once you have the list, the next step is to group them into aspirational and current competitors.

The dealers with whom you would like to complete will be aspirational competitors. The dealer brands that you are already competing with will be current competitors.

3. Know Your Competitors

Finding answers to questions like:

• Is your competitor’s dealership targeting your audience segments?
• What is the USP of your competitor?
• Does the competitor have any gaps in their product lineup or service offerings?
• What are their promotional strategies?

4. Follow Their Web Content

Follow the competitions’ online content – their website, business listings, reviews, and more. This will help to create better business content and promotional strategies that can fill the gaps that competitors leave behind,

5. Check Their Social Media Engagements

Social media engagements play a crucial role in winning customers.

You need to analyze how your competitors are using social media for their marketing. This can give you an idea as to how you can improve your social media engagements.

6. Analyze Their Weaknesses & Strengths

Your competitor’s weaknesses can help you improve your marketing tactics and win their customers. Conversely, knowing their strengths can help you plan alternative paths to success.

7. Know Your Market Trends

Both you and the competition function in the same market, and analyzing market trends will give vision and depth to your competitor analysis.

Tracking the emerging trends in your area and bench-marking your business preparedness against the competition in capitalizing on these trends can help shape a far more robust business strategy.