What is Competitor Analysis?
Competitor analysis in marketing and strategic management is the assessment of the strengths and weaknesses of current and potential competitors. The analysis provides an offensive and a defensive strategic context to identify new opportunities and risky threats. Profiling combines all relevant sources of competitive analysis into a single framework to support efficient and effective strategy monitoring, formulation, implementation, and adjustment.
Competitive analysis is the essential component of business strategy. It is said that most firms do not conduct this analysis systematically enough and many enterprises operate on the information each manager receives through frequent inferences, informal impressions, and information about competitors obtained through intuition. As a result, traditional environmental scanning puts many firms at risk of dangerous competitive blindspots due to a lack of robust competitor analysis. It is important to conduct competitor analysis at various business stages in order to provide the best possible product or service to the customers.