A competitive analysis is an important business document in which you assess your business or a specific business project and compare it to your potential competitors. This document can help your investors or executives see why they should put time and money into your business project. This analysis will help direct your focus and attention so that you can create effective business strategies.
Purposes of a Competitive Analysis
There are many reasons why one might write a competitive analysis. You may want to improve your business practices in general, and taking stock of your competition and gathering information on them can help you run your business most effectively. You may also want to run a analysis on a specific product idea or marketing technique to see how it worked out for your competitors. This will help your company decide on what the best action to take in the future is.
What’s in a Competitive Analysis?
There are some important key components that go into a good competitor analysis. The first is n overview of your direct competitors as well as your indirect competitors, and what those competitors’ missions and goals are. You’ll then want to assess the strengths and weaknesses of your competitors individually, and assess how they could personally affect your business, depending on the actions you take. Finally, you’ll want to lay out an assessment of the strategies your competitors have used that have worked, how they might affect you in the future, and what your business can do to react and succeed in the industry. It’s important to back up these ideas with clear examples as well as numerical facts and figures.
Need examples of competitive analysis? We have free PDF examples here on our website available for download. Be sure to check out these examples for a full understanding of analysis writing.
Competitive Analysis Example
Industrial Competitive Analysis Template