A competitive landscape analysis is a structured way of identifying and researching your competitors.<\/strong> You perform a detailed investigation into how they\u2019re conducting product development, marketing, sales, and other vital operations. The analysis allows you to develop counter-strategies based on accurate and reliable data instead of guessing why you are underperforming.<\/p>\n\n\n\n A competitive landscape analysis should cover five key topics:<\/p>\n\n\n\n Every business can benefit from competitive landscape analysis, from the smallest startup challengers to an industry\u2019s reigning titans. Learning what the competition is doing to grow their bottom line is a great way to grow your own.<\/p>\n\n\n\n A competitive landscape analysis sets the direction for where your business could go in the future.<\/strong> In the short term, it lays out a plan for the needed next steps. By engaging in a methodical survey of your competitors\u2019 activities, you learn more about who your potential customers are and how you can do a better job of reaching them.<\/p>\n\n\n\n Studying the competition also helps you\u00a0paint a clearer picture of your company\u2019s\u00a0unique value proposition\u00a0(UVP)<\/strong>. Knowing your UVP allows you to focus on the extraordinary qualities that make your business stand out. These are the things that you do better or differently than the competition.<\/p>\n\n\n\n The value of competitive landscape analysis is well-known by successful businesses.\u00a0Around 90% of Fortune 500 companies engage in\u00a0competitive analysis. 69% of companies that have outsourced their competitive intelligence operations have reported\u00a0overall positive results\u00a0from doing so.<\/strong>\u00a0With a solid plan and the right tools, any business can start reaping this useful practice\u2019s rewards. Here\u2019s how to get started.<\/p>\n\n\n\n Competitive landscape analysis example<\/em><\/p>\n\n\n\n Reams of raw data won\u2019t yield many insights if it\u2019s not organized or structured. Step one is to create a tool to organize your data. Create a spreadsheet or matrix you can update, sort, and share.<\/strong> Having a way to visualize your data can be extremely helpful, too.<\/p>\n\n\n\n You\u2019ll end up with lots of varied information and data points to record, but you can list and categorize your known competitors to get started.<\/p>\n\n\n\n Who are your competitors? And how should you categorize them? You can probably answer that first question off the top of your head, but you shouldn\u2019t limit yourself to studying only the most obvious competition.<\/p>\n\n\n\n Begin with a list of ten competitors and sort them into three categories: primary, secondary, and tertiary<\/strong>. <\/p>\n\n\n\n The primary category is for your direct competitors\u2014companies that provide essentially the same product or service as you. <\/p>\n\n\n\n Secondary competitors are similar, but not quite the same. Companies that sell a version of your product with different features, or market to different demographics, would be your secondary competitors. <\/p>\n\n\n\n The tertiary category includes companies that sell something fundamentally different that could be an alternative purchase to what you\u2019re offering.<\/p>\n\n\n\n Once you\u2019ve identified the players, you can\u00a0start reviewing and\u00a0analyzing the content\u00a0they\u2019re putting out<\/strong>. Look closely at:<\/p>\n\n\n\n Their advertising<\/p>\n\n\n\n The imagery they use<\/p>\n\n\n\n Their website and everything they publish on it (blogs, whitepapers, ebooks, testimonials, newsletters, etc.)<\/p>\n\n\n\n Multimedia content like videos, webinars, and podcasts<\/p>\n\n\n\n One way to do this is by using software tools to find and scrape the content. Don\u2019t be afraid to engage in manual research when necessary. Pretend you\u2019re a customer, embark on the purchasing journey, and see what content your competitors set out for you. See what themes, messaging styles, and branding choices stand out the most.<\/p>\n\n\n\n One of the best sources of competitor intelligence is social media. Now more than ever, buyers are turning to social media for unfiltered information and real talk about their potential purchasing decisions.\u00a0B2C and B2B\u00a0businesses alike are rushing to meet that demand with a compelling social media presence, a consistent voice, and tons of content.<\/p>\n\n\n\n Social media is where you\u2019ll often get the strongest feel for a company\u2019s brand persona. It\u2019s an easy place to discover their newest marketing strategies and see how they engage with their audience<\/strong>.<\/p>\n\n\n\n Because social media is such a vast space,\u00a0social media listening tools\u00a0can come in very handy here. They can ensure you\u2019re watching the right hashtags, keywords, and relevant conversations that might be happening.<\/p>\n\n\n\n Once you\u2019re watching and listening in all the right places, you\u2019ll be able to perceive the bigger picture of your competitors\u2019 marketing strategy. <\/p>\n\n\n\n What you want to know is:<\/p>\n\n\n\n Where are they focusing their marketing efforts?<\/p>\n\n\n\n Where are they purchasing ads?<\/p>\n\n\n\n What incentives are they offering to draw buyers further into their sales funnel?<\/p>\n\n\n\n Look closely at the CTAs in their content. Check out their opt-ins to see where and how they ask prospects to engage for further information. Join their email list to see first-hand how their email marketing is structured and sequenced. Find out what special offers or giveaways they might be promoting. With this information, you can piece together their tactics for lead conversion<\/strong>.<\/p>\n\n\n\n You don\u2019t just analyze your competition so you can copy what they\u2019re doing. Sometimes you get to see what isn\u2019t working, so you don\u2019t want to copy that. It\u2019s also essential to consider that a good strategy for a competitor may not be suitable for your company. This is especially true when you\u2019re looking at secondary or tertiary competitors.<\/p>\n\n\n\n However, knowing what your competitors are charging for comparable products or services is important when setting your prices<\/strong>. You can\u2019t expect to win the fight for customers if you\u2019re overcharging. Conversely, significantly undercutting competitor prices can suggest lower quality or minimal customer support. <\/p>\n\n\n\n You can also learn a lot about customer expectations by studying typical promotional offers for the type of goods you sell. This information can help you determine whether it makes sense to offer customer enticements such as free trials, discounts, or subscriptions.<\/p>\n\n\n\n Companies with a\u00a0strong marketing and communications strategy\u00a0know it\u2019s crucial to create a unique position for themselves in the marketplace. They do this by finding ways to differentiate themselves from their competition. When analyzing your competitors,\u00a0look for the themes and ideas in their messaging that function as differentiators<\/strong>.<\/p>\n\n\n\n For example, imagine three pizza parlors on the same block. One offers the largest slices; one offers the fastest delivery; and the third promises the healthiest ingredients. They\u2019re all in competition, but they position themselves very differently. To find your own unique selling proposition, you have to know how the competition is positioned.<\/p>\n\n\n\n You don\u2019t have to invent a structure for a competitive landscape analysis process. There are existing, proven frameworks you can use, such as SWOT and PEST.<\/p>\n\n\n\n SWOT<\/strong> stands for Strengths, Weaknesses, Opportunities,<\/strong> and Threats<\/strong>. Strengths and weaknesses reflect the internal characteristics of your business. Opportunities and threats represent outside factors. In competitive landscape analysis, you try to identify your competitors\u2019 SWOT factors to compare them against your own.<\/p>\n\n\n\nThe value of competitive landscape analysis<\/strong><\/h2>\n\n\n\n
8 Steps to create a competitive landscape analysis<\/strong><\/h2>\n\n\n\n
1. Get organized<\/strong><\/h3>\n\n\n\n
![\"\"](\"https:\/\/azoora.com\/blog\/wp-content\/uploads\/2021\/04\/8-easy-steps-for-creating-a-competitive-landscape-analysis-01.jpg\")
<\/figure>\n\n\n\n2. Identify your competition<\/strong><\/h3>\n\n\n\n
3. Analyze their content<\/strong><\/h3>\n\n\n\n
4. Monitor their social media<\/strong><\/h3>\n\n\n\n
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<\/figure><\/div>\n\n\n\n5. Analyze their marketing strategy and offers<\/strong><\/h3>\n\n\n\n
6. Evaluate their offers and pricing<\/strong><\/h3>\n\n\n\n
7. Determine their positioning<\/strong><\/h3>\n\n\n\n
8. Use frameworks: SWOT the PEST<\/strong><\/h3>\n\n\n\n
![\"\"](\"https:\/\/cdn-www.oktopost.com\/blog\/wp-content\/uploads\/2020\/12\/SWOT.png\")
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