Studying your competition in the marketplace with the assistance of a digital agency is essential to the advancement of your agency. The reality is that the growth of your business is affected by the relative success or failure of similar businesses in the industry you are part of. As you and your team exert maximum effort to be the best that you can be, you must consciously try to do better than your competition in the different aspects of your business.
Keep reading to find out what competitor analysis is and who your competitors are. Discover why it is important for you to analyze your competition with the guidance of a digital marketing agency. Explore how you can evaluate other businesses through strategic techniques like SWOT analysis, market mapping, and internal / external focus. Finally, discover why it is vital for you to utilize the services of a marketing agency or SMB agency to gain an edge over your competition.
What Is Competitor Analysis?
A competitor analysis is a business technique that allows you to identify your competitors in the industry you belong to. This process is also commonly known as competitive analysis. According to Business News Daily, it involves researching and evaluating your competitors’ products, services, and marketing strategies based on predetermined criteria. It also entails assessing the strengths and weaknesses of your competition.
Who Are Your Business Competitors?
Competitors refer to other businesses in the same field which are similar to your own business. These are the types of competitors your business may have:
- Direct Competitors: Your direct competition are businesses which offer similar products and services to your own. Inter Press Service News Agency explains that direct competitors have the same target audience, selling methods, and goals as your own business.
- Indirect Competitors: Your indirect competition are businesses which offer similar products and services to your own. In contrast with direct competitors, however, indirect competitors have different goals and objectives from you.
Why It Is Important To Assess Your Competition
There are several advantages of evaluating your competition in the marketplace:
- Pinpoint Your Strengths and Weaknesses: You can discover the strengths and weaknesses of your business by analyzing the pros and cons of your competitors. Mailchimp expounds that it allows you to understand your current positioning in the market about competing businesses.
- Gain a Clear View of the Market: Competitor analysis enables you to have a wider perspective of the market by revealing who the major players are and which segments of the market are presently being underserved.
- Be Updated on Industry Trends: Observing your competitors will give you the chance to discover the latest industry trends and to learn which direction the market is moving towards.
- Finetune Your Business Goals: It will be easier for you and your business team to adjust your objectives for the future if you are aware of how your business stacks up to the competition. You can understand which aspects of your business you need to improve and which ones you can maintain.
How To Evaluate Your Competition With the Help of a Digital Agency
There are various strategic techniques that you can use to assess your competitors in the industry:
SWOT analysis is a business planning method that reveals the core strengths, weaknesses, opportunities, and threats that are relevant to your business. According to Investopedia, this fact-based, data-driven framework provides you with assessment tools that will motivate you to gain new perspectives and develop new ideas.
Market mapping involves the use of a graph to map out competitors and their products and services. The visual presentation of data makes it simple for you to locate the gaps in the market so that you can address these gaps in the future. BBC explains that the two elements that are commonly measured by maps are the price and quality of services and products.
Internal Focus and External Focus
Internal focus and external focus are both important to the growth of your business. That’s why Forbes recommends a healthy balance between the two focal points. While internal activities like upgrading old systems and implementing new procedures are crucial, it is also critical for you and your team to concentrate on external activities, such as communicating with potential clients and exploring fresh opportunities.
Why the Services of a Digital Marketing Agency Are Essential
Large corporations usually have their marketing departments, but small to medium businesses like yours typically don’t have the budget to start their department or to hire a dedicated marketing expert. Thankfully, you have the option of enlisting the help of a competent marketing agency to perform effective competitor analysis on your behalf.
Contact your local SMB Agency now to start studying your competition in the industry to increase the chances of success of your own business.