Competitor analysis: How to study the market and win

Artyom Dovgopol

Analysis of competitors is like a good reconnaissance before the battle – the better it is, the higher the chances of winning are 😉

Key takeaways 👌

Introduction

Imagine that you’re just starting to learn how to play chess, right? You don’t know any winning combinations and are harmless to your opponent. How do you fight back? How do you survive? By watching your opponent as closely as possible, noting their every move, and trying to predict from where will the first strike come. 

Starting in an industry is very similar to that very first game of chess – you probably don’t have the tools or the knowledge to keep yourself on the market, with nothing left for you but to adapt and study how other companies are doing the exact same thing you want to do. 

There are a lot of businessmen out there, each with their unique approach to pushing their product, so just hoping that your creation is remarkable enough to sink all the competition is simply not enough.

Competitor analysis 

You’re not just collecting information, you systematically catalog what to do and what to not do when analyzing your rivals. How is it beneficial, exactly? In more than one way:

• It helps you understand what works and what doesn’t for your specific industry.
• Gives you a couple of options as to where to proceed in terms of marketing strategy – innovation is basically something already created but improved.
• Grants you a view of potential pitfalls and roadblocks before you even stumble upon them.
• Allows you to correct your business strategy and improve UX.

Correctly performed analysis of the competitors is detrimental to your project’s development in the long-run, and will give you a much-needed fundament to stand on.

You either sail into the uncharted waters, hoping that the storm won’t push your boat over, or you use the map that was kindly written by someone who’s sailed these waters before to chart a safe course. Competitor analysis is your map. Feel free to improve on it, finding even faster ways to your destination

Methods of competitor analysis

Now here you can let your imagination go wild. 80s - 90s USA, for example, was drowning in endless cases of corporate espionage – they make you sign an NDA during the onboarding these days for a very good reason. This example is a bit extreme, though – there are much safer and legal ways to study your competitors. Here are the most common and popular ones:

• Basic information collecting: There’s a good chance that your rival’s website, open-sourced investor presentations, and maybe even yearly reports (big companies usually make these available to all for additional transparency) already have all the info you’ll possibly need. Add client testimonials and reviews from various platforms for additional depth.
• Content and marketing monitoring: The way a company showcases its brand on social media and other channels can tell you quite a few things about its content and marketing strategies. Take note of what is viewed many times over, and what’s left forgotten without a single like to it.
• Price policy analysis: This one’s important. Even if you have a great product, pricing it incorrectly can either draw potential customers away or attract those you rather skip. Check what’s going on in the market – what’s expensive, what’s cheap, and how your competitors try to balance between the quality of the product and making a profit.
• Specialized tools use: Done with partisan tactics? Good, now let’s get technical. SimilarWeb, SEMrush, and other traffic-tracking websites can give you a very detailed tour into what competitors are performing well, and what are lost on the 10th page of Google. Be prepared for a small subscription fee for even more detailed results, though.

And a bit more about the ways to improve your website…

Looking for even more places to improve? Our article Usability testing: How to improve your website and boost conversions will give you a few ideas

Practical tips on competitor analysis

Competitor analysis is not a one-time thing either, mind you, but a process that should be maintained for as long as the business exists. You’ll be studying large quantities of data, so it’s important to organize it all in the most accessible and understandable way possible, unless getting lost in 10+ spreadsheets is something you do in your leisure time.

Here are a couple of pointers on how to make the most of your competitor analysis:

• Systemize it: Tables, spreadsheets, diagrams, dedicated boards – informational pipeline must be accessible, visible, and understandable for easy access and simplicity of use.
• Regularly refresh your database: You’re not the only one doing all the analyzing. Your competitors are also there, improving and evolving – never stop keeping tabs on them, adding more and more information to your ever-growing pool of data.
• Aim for the top: Constantly comparing yourself with companies that are obviously not good at what they’re doing can be satisfying, but is not very productive. Leaders of the market are that for a reason – there’s definitely a lot to learn from them. Just remember that simple copycatting won’t cut it – take what’s good and improve it even further!
• Determine weak spots: Companies fall apart and close down too often for comfort. The only thing you can do is try and understand why exactly they closed down, gaining valuable insights into what not to do.
• Use your freshly analyzed info: It’s easy to get lost in all the analyzing and cataloging, but what really pushes your business forward is actual change and constant innovation. Don’t be afraid to experiment! Preferably, in a way, different from your competitors. Not the ones who’ve gone bankrupt, that is.

Conclusion

Digital competitor analysis is a powerful tool to keep your business ahead. Effective research uncovers rivals' weaknesses and reveals new growth opportunities. By leveraging data, you can quickly refine your strategies, improve your offerings, and build unique value propositions that attract and retain customers. 

Start conducting regular competitor analysis to drive sustainable growth and secure market leadership!