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What is a competitor analysis framework?
Any marketer knows that competitor analysis is the foundation of building any brand because it provides insights into what other brands in your niche are doing, their target audience, and how well they are faring.
Here are 3 key reasons why doing a competitor analysis is important:
- You get tips on how you can enhance your business
- Get ideas on how to out-do your competitors
- You will learn the strengths and weaknesses of your customers and get a competitive edge
To create your competitor analysis, you will need a competitive analysis framework. This is a plan that will guide you through your research. It gives you a specific structure. There are different types of competitive analysis frameworks according to the specific needs of the brand and the marketing campaign.
5 different types of frameworks and when to use them
A SWOT Analysis helps you measure the Strengths and Weaknesses, Opportunities, and Threats that can impact your competitors’ business and potentially impact yours.
Strengths and Weaknesses are internal factors that can affect the business, and Opportunities and Threats are external factors.
Some examples of Strengths and Weaknesses are – Location, relationships, reputation, and even the staff.
Examples of Opportunities and Threats are – demand for your products, financing, raw materials, and even the political climate!
Porter’s Five Forces
Porter’s five forces framework examines a competitor’s market in an industry or niche. The industry will be evaluated according to five aspects that directly affect how much competition a business faces.
The five elements are:
- New entrants
- Bargaining power of suppliers
- Threat of substitutes
- Competition in that segments
Strategic Group Analysis
A Strategic Group Analysis helps one analyse competitors in clusters based on similarity of strategy. You can analyse which cluster your business falls in. with this strategy, you will get answers to your competitors’ behaviours, such as the type of campaigns they rely on, their pricing strategy, etc.
Growth Share Matrix
According to the Boston Consulting Group, the Growth Share Matrix uses a graphical representation of a company’s products and services to decide which products to keep, discard, or invest in.
The matrix is divided into four quadrants, with the x-axis representing the market share and the y-axis representing the rate of market growth.
It is important to note that the matrix just assists in decisions and does not necessarily consider all the factors businesses tend to face.
Perceptual maps are visual representations of your products compared to other competitors in your industry. This map shows the position of your brand, product, or service against those of your competitors. You will have to determine the attributes based on which the comparison will be made
This type of competitor framework is done when you want to know how your customers perceive your brand in relation to your competitors.
We use data and creativity to help you build a brand identity that sets you apart from the rest. If you like our ideas above, take a look at our works on thebumblebee.in