Competitor price analysis is an evaluation of the strengths and weaknesses of prices of the products manufactured by potential rivals who may cut market shares of the concerned company. It arms with both an aggressive, offensive and simple defensive strategic perception of threats and opportunities. This has emerged to be a crucial tool in formulating corporate strategies and determining market prices as it provides an unbiased survey of the market.
Sample Competitor Price Analysis
Industry concerned: Electronics appliances
Host Company: Relix Electronics
- Suave Electronics.
- Electro Private Limited
- Lumos Company
Competitor 1: Suave Electronics.
Strengths: the company is well reputed and famous for its heritage and glorious history. This provides the organization a strong database of loyal clients who have been their regular customers for ages. The prices quoted are thus mostly found to be extremely reasonable.
Weaknesses: although age and heritage provides the company with a large number of loyal customers, age comes in its way when it comes to innovation. Thus in terms of design and improvisation the company remains stagnant sticking to the conservative, traditional, safe terrains.
Competitor 2: Electro Private Limited
Strengths: the company is the master of innovation, creativity and freshness in terms of business strategies. The product list of the company is extremely up to date with the times and the showrooms undergo constant improvisation and transformation. Being recently born, its lack of experience also adds a freshness and rawness to its appeal that makes it further popular among the youth.
Weakness: glamour is often maintained at the cost of its market price. Hence, most of the products are found to be quite expensive and beyond the range of the average customer.
Competitor 3: Lumos Company
Strengths: the company is an ensemble of the right proportions of all factors be it reputation, innovation, price, quality thereby making its perfect balance its USP. Investment in advertisement of the products and intelligent tapping of the media also gives it an edge for the others.
Weakness: its overzealous attitude towards creativity and new things often triggers a disdain towards tradition, resulting in its unpopularity among the senior customers.