Conducting competitive analysis for companies

The development of a positioning strategy largely depends on market and competitive analysis. It brings to light the advantages of the product and helps assess risks and choose the best communication channels.

The goal of competitive analysis is to collect data about the plans of different market players and to understand the positioning of competitors. Depending on the task, an analyst can use one of the following popular competitive analysis methods.

SWOT Analysis

This method helps identify the positive and negative effects of the internal and external environment.

The method consists of four components:

Strengths — comparative analysis of competitive advantages of a product or service;
Weaknesses — identifying disadvantages;
Opportunities — studying positive environmental factors;
Threats — identifying negative factors.

Using this method, one can evaluate a company’s potential and risks and develop an effective marketing strategy.

SPACE Analysis

This tool is used to diagnose a company’s market positioning and helps analyze:

A company’s advantages;
Financial standing;
Industry appeal;
Economic stability.

A brand’s behavior depends on its current position in the market.

PEST Analysis

This method is used to study a company’s macroenvironment and assess market trends and tendencies that are affected by:

Competitors Analysis