How and when to conduct a thorough competitor analysis

Gugu Mjadu, executive general manager for marketing at Business Partners Limited, highlights the importance of keeping a finger on the pulse of the ever-changing competitor landscape. “In today’s dynamic business environment, a once-off competitor analysis can no longer cut it. With new companies constantly entering and exiting the market, regular competitor reviews are essential for SMEs to remain relevant and capitalise on shifting market opportunities.”

A competitor analysis is a systematic approach to evaluating the strengths and weaknesses of other key players in your industry and how your business compares on these. It involves examining their products, services, marketing strategies, pricing models, and customer feedback in order to make informed decisions that can propel your businesses forward.

Mjadu suggests starting small, by identifying your direct competitors. “Look for businesses that offer very similar products or services and target the same customers as you. Understanding who your main competitors are will allow you to gather relevant data and insights.”

Once you’ve identified your key competitors, it is essential to gather data on them by means of:

• Online research: Websites, social media platforms, and online reviews can provide valuable insights into competitors’ offerings and customer perceptions. There are many online tools that you can use as well for this purpose such as Brand24 and even ChatGPT.

• Customer feedback: Engaging with your customers can reveal their experiences with competitors, shedding light on what they value most and what might be lacking in those offerings.

• Industry reports: Accessing market research reports can help business owners understand broader trends affecting their industry and the strategies employed by their competitors.

However, Mjadu emphasises the importance of interpreting this data effectively. “It’s not just about collecting information; it’s about making sense of it in real-time. Look for patterns, strengths, and weaknesses in your competitors’ strategies, and consider how you can leverage this information to your advantage.”

Business owners should take time to assess how their products and services compare relative to their competitors. This reflection can lead to valuable insights regarding potential improvements or innovations that can enhance customer satisfaction and attract new clientele.

Mjadu notes: “Taking the time to analyse your findings can help you pinpoint what differentiates your business. Whether it’s exceptional customer service, unique product offerings, or a more engaging brand presence, understanding your unique selling proposition is key to standing out.”

Armed with your up-to-date competitor insights, you can set clear, actionable goals for the upcoming year. These goals should focus on how to enhance market presence, improve service, and address any gaps identified during the analysis. For instance, if competitors are excelling in online engagement, it may be time to invest in digital marketing strategies.

“Goal setting is an essential part of this process,” says Mjadu. “By establishing smart objectives based on your competitor analysis, your business can stay focused on improving its operations and achieving long-term success. Monthly mini reviews using online tools for your team meetings combined with a formal quarterly review can help ensure that your goals stay relevant as new players enter and dynamics shift.”

However, Mjadu emphasises the importance of interpreting this data effectively. “It’s not just about collecting information; it’s about making sense of it in real-time. Look for patterns, strengths, and weaknesses in your competitors’ strategies, and consider how you can leverage this information to your advantage.”

Business owners should take time to assess how their products and services compare relative to their competitors. This reflection can lead to valuable insights regarding potential improvements or innovations that can enhance customer satisfaction and attract new clientele.