A competitor analysis is an exercise in assessment which focuses on a company or a business enterprise’s competitors in order to constantly improve on its performance and standing in the world of commerce. A competitor analysis must analyze the presence, influence and standing of all other companies and businesses which share the same market and clientele, or sell the same product, in order to compare and contrast performance and reputation. A competitor analysis can be commissioned by a company or business to another external agency with exercise and experience in this kind of assessment, or it may even be conducted by the company’s own internal system. Some of the factors that must be addressed by the competitor analysis document are as follows:
- Presence of competing factors that may pose a threat to the sway of the commissioning company.
- The method by which the competing companies operate and whether they share the same client groups, products and processes or not.
- The share of the revenue which competition is depleting for the commissioning company.
- The manner in which the commission company can improve on its existing infrastructure to enable growth and expansion.
- The manner in which the competitor analysis can be put to beneficial use by the commissioning company and the way in which measures for change can be introduced.
A competitor analysis must be thorough and well researched. It should be documented in the correct manner as well so that the points and issues raised by it can be put to good use. A competitor analysis must be supported with adequate evidence, as hypotheses are simply not enough for this kind of a document. Facts and figures must be supplemented by the necessary graphs and charts. A well constructed competition analysis report can work wonders for a company plagued by aggressive competitors.