For any business, market analysis is an essential step. Almost every business claims to be different from the competitors, but only a few have tried to validate that belief. There are many reasons why studying everything about your competitors is essential. Without it, your business can’t thrive and flourish.
#1. Get to Know Your Flaws
Researching about your competitors gives you insight into what you lack. Your competitor might be selling an advanced version of what you offer, or have a strong customer relationship. Such analysis will help you determine the loopholes that you need to work on.
#2. Understand Your Customer Expectations
Studying the quality and price of the product or service your competitors are selling will give you an upper hand to understand if it’s working for the customer or not. This way, you can adjust your product or service to better meet your customer's expectations.
#3. Improved USPs
Competitor analysis will enhance your Unique Selling Points or create ones for your new product. Studying your competitors will help you come up with improved solutions to differenciate your product or service from your competitor's.
#4. Learning from the Success/Failures of Competitors
Getting to know your competitors also unveils their successes and failures, which you can use to your advantage. You can learn from their success and avoid mistakes that led to your competitors failing.
#5. Finding Underserved Customers
Studying your competitor will also reveal if they are neglecting a portion of the target audience. Identify their unmet desires or pain points and try including them into your product/service.
As you enter the world of business ownership, you enter the fierce race to acquire market share. Always keep in mind that your competitors are as much a threat as they are an opportunity for you to be more creative and push your limits. They allow you to learn, innovate and demand more of yourself in order to provide your customers with the best products or services.