Competitive analysis is the process of exploring info about your business competitors on the market (their strengths, weaknesses) and comparing it to your business position. Collecting and evaluating the information about competitors is significant for prosperous business strategies and it helps much in the business decision-making process.
The analysis begins with the identification of the existing and potential competitors. Then you need to determine the characteristics of your competitors that are worth examining. You need to understand how you can use these data to grow your business.
By doing competitive analysis you will be able to build a successful competitive strategy, so your business will be one step ahead of your competitors. But it’s not a magic wand or a one-and-done exercise. Business is constantly evolving, so it’s important to remember that keeping an eye on your competitors is an ongoing process—not something you do once and then never again.
To get a better understanding of how to approach the competitive analysis you can read our blog post on how to conduct a competitive analysis