Competitors Analysis
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.
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:
- Politics
- Economy
- Social processes
- Technological development
- Ecology
The results of PEST analysis could be useful for SWOT research.
Michael Porter’s Five Forces Analysis
In 1979, Michael Porter developed a model of competitive analysis based on five forces that affect the market:
- Abilities of buyers
- Potential of suppliers
- Threats from new entrants
- Possible occurrence of substitute products
- Industry competition
Having evaluated all five forces, a company can find a stable and profitable position in the industry. It is recommended to conduct this type of analysis every 3 to 5 years.
Having completed the main stages of competitive analysis, you can start planning your brand’s development. The choice of a competitive strategy depends on:
- Current marketing position;
- Your company’s goals;
- Market situation.
To find more about our professional competitive analysis services, please contact us at brand@fabula.global.
