Competitor analysis is a quintessential activity of modern strategic management in the corporate world. The competitors in the industry are evaluated based on certain concrete numerical data and qualitative assessment reports and a road-map is drawn to counter their moves and improve one’s performance in context to it.
The strengths of the competitors are enumerated and are scrutinized one by one. The different aspects on which the competitor can pose to be a threat is thoroughly studied. A plan is designed after a holistic interpretation of the analysis to subdue the effects of the moves taken by the rival entity or company.
One of the main priorities of the competitor analysis is streamlining of corporate strategies to gain an edge in the stiff competition to grab the most of the market. A continuous research on the alternating environment of market is being performed and accordingly the data is used for further qualitative analysis on basis of which the performance of the business is bolstered.
The extensive profiling of the rivals via competitor analysis makes it easy for the concerned firm to design its own business policies and modulate the financing, production and marketing decisions of the goods and/or services.
The competitor analysis also helps to locate new rivals in the arena and who has the potential to have a bite in the market share. The firm who applies the analysis in this regards tries to concentrate on the strategies taken by these new rivals and speculate their moves. Accordingly, the concerned entity designs business policies, especially marketing strategies to counter those measures by the new competitors.
Another important benefit condensed from the competitor analysis is to revise the firm’s costs and investment plans in order to deliver in a more optimized manner. The competitor analysis is a continuous process and numerous firms, irrespective of their capacities of production, apply it.