Competitor analysis: 8 steps to analyze your competitors in 2023

Competitive analysis 2023

Competitive analysis is a fundamental aspect of implementing marketing strategies as it provides valuable insights for success in a competitive market.

Understanding your company's position in relation to its competitors is critical to developing effective marketing strategies. This article aims to explore the process of mastering competitive analysis and its impact on marketing success.

Competitor analysis does not only concern Fortune 500 companies. With every type of Business it is helpful to observe the activities of competitors in order to develop your own strategies - and this applies in particular to content marketing.

By observing your competitors' tactics, platforms and campaigns, you can improve your business. If you don't conduct competitive analysis, you can fall behind and miss out on potential ideas that could lead to serious growth.

Let's take a look at some of the main ways you can use your competitors' ideas for a More successful digital marketing can use against them.

The most important facts in brief

  • Competitor analysis is an important step in understanding the market position and identifying threats and weaknesses.
  • Porter's model of competitive analysis comprises five forces that should be taken into account: Customers' bargaining power, suppliers' bargaining power, existing competitors, new competitors and substitute products.
  • Competitive analysis provides insights for pricing, marketing and product improvement and can support decision-making processes and challenge existing beliefs.
  • Regularly updating and improving the competitive analysis is necessary in order to stay informed about market trends and develop a successful marketing strategy.

Why competitive analysis?

Competitive analysis is a crucial step in developing a successful marketing strategy as it provides insight into the strengths and weaknesses of competitors and enables companies to outperform them. According to a study by Forbes, companies that regularly conduct competitive analysis are 2.5 times more likely to achieve their business goals.

Understanding market dynamics is crucial for data-based decisions. By analyzing the competition, companies can identify market trends, customer preferences and potential threats. This information can help determine pricing strategies, marketing campaigns and product improvements.

Data-driven decision making ensures that companies allocate resources effectively and maximize their competitive advantage. By integrating competitive analysis into their marketing strategy, companies can stay one step ahead of their competitors and achieve their business goals.

Steps for analysis

To conduct a comprehensive market analysis, it is important to follow a series of steps. These steps include making a list of competitors, visiting their websites, conducting a SWOT analysis for your own company and summarizing the results in a chart to identify the companies that excel in customer satisfaction and market presence.

By following these steps, marketers can gain valuable insights into their competitors' strengths and weaknesses, which can help inform pricing strategies, marketing campaigns and product improvements.

The benefits of a competitive analysis are numerous, including the ability to identify threats and vulnerabilities, challenge existing beliefs and develop a unique marketing strategy. In addition, a competitive analysis can lead to action and clear business objectives and improve the overall marketing strategy.

By regularly updating and revisiting the analysis, marketers can stay informed about market trends and gain a competitive advantage in the industry.

Search the website for missing pages

The first step in analyzing competitors in the context of content marketing is to review your competitors' websites. Examine what pages they have and look for pages they have created that are not present on your website.

This goes beyond services or products and can include case studies, reviews and testimonials, company history and corporate culture.

Look at several competitor websites to find the most used pages that you are missing, especially for businesses that you are losing customers or clients to. There is a good chance that these pages are leading to conversions, and your website would benefit from this.

Customize your topics and media

Content gap analysis is a buzzword in competitive analysis, but it's also a practice that companies are increasingly unable to do without.

It refers to the method of taking a closer look at the content found on your competitors' websites and identifying the "gaps" - content that your competitors have that you don't have.

In contrast to the page analysis, this check examines types of content (articles, videos, podcasts, papers, infographics) and, above all, topics.

Illustration with light bulb and "Content Gap Analysis"

A content gap analysis can give you a real advantage over your competitors. Once you have filled these gaps with great content on your website, your own "gaps" become a problem.

They will no longer have a monopoly on these parts of the market. SEO and content marketing tools that offer content gap analysis include SEMRush, Ahrefs and The Hoth.

Observe your most important sales arguments

Many companies use their homepage to promote key features and selling points. It is therefore invaluable to look at the homepage and understand what is being highlighted and why.

For example, marketing specialists Artemis promote their position in the FreeIndex ranking on their homepage. As a competitor, you can ensure that your company is ranked on FreeIndex.

Illustration with a hand holding a megaphone and "learning from what they promote"

You can do this with any successful competitor as you gain insight into their most popular products or the aspects of the business that generate the most profit. These articles on the homepage might be worth considering.

Create similar content - and improve it

One way for businesses to promote their goods and services is to create fantastic content. Not only does this content make them attractive to the Google algorithm, but it can also provide visitors and potential customers with useful information that will entice them to return to Google.

If one of your competitors specializes in creating fantastic content, take a leaf out of their book - but bring something new to the conversation and do it better than them. A great way to do this is to thoroughly research the topic you're writing about.

Use a tool like "Answer Publicly" to understand frequently asked questions about the topic and then create content that answers those questions. If you can add new data or unique expert perspectives from your own organization, that's even better.

Don't let them dominate the conversation

All businesses will have a specific way of self-promotion to demonstrate their unique selling points. If a customer only sees their side of the story, this can make their selling point seem the most accurate, important and best option.

For example, if their business model is to offer the cheapest products, their online media is full of messages explaining that customers should choose them because they are the cheapest.

However, you can use this as an opportunity to create counter-narratives that present your company's differentiator as superior.

You can focus on what people get for the price, unique services or capabilities, product quality, patents or technology, experience, the way you treat your customers - whatever makes you better.

Never allow your competitors to have a monopoly on information.

Be present at your digital hot spots

Social Media is crucial for companies and an important part of their digital marketing strategy.

If your audience spends a lot of time on certain social channels and your competitors are present, but you are not, this can result in a whole range of potential customers never seeing your messages or offers, even though they are interested in them,

Illustration with social media icons

Use a combination of audience research and competitor analysis to find out which social platforms your customers use the most. These are the ones you need to target.

Your competitors operate in the same market as you, so they face the same challenges and target the same customers. If you regularly Competitor analyses to investigate the best digital marketing work, you can add your own The company to success.

Bonus: Porter's model

Porter's model of competitive analysis comprises five forces that shape the market landscape. These forces include the bargaining power of customers, the bargaining power of suppliers, existing competitors, new competitors and substitute products.

One advantage of Porter's model is that it provides a comprehensive framework for analyzing competitive dynamics within an industry. It enables companies to understand the various factors that influence their market position and identify potential threats and opportunities. In addition, Porter's model helps to develop effective strategies by highlighting areas where a company can differentiate itself from its competitors.

However, there are limitations to this model. It may not fully capture the complexity of certain industries or the impact of rapidly changing technologies. Furthermore, it does not take into account factors such as government regulations or social and cultural influences.

Despite these limitations, Porter's model remains a valuable tool for conducting competitive analyses and supporting strategic decisions.

Frequently asked questions

How can competitive analysis help companies improve their marketing strategy?

Competitive analysis can help companies improve their marketing strategy by identifying opportunities and analyzing customer behavior.

By thoroughly analyzing the competition, companies can gain insight into their strengths and weaknesses, allowing them to develop strategies to outperform them.

This analysis also helps to understand market trends, pricing and customer preferences, enabling companies to make informed decisions and set clear business objectives.

By regularly updating the analysis and implementing the results, companies can continuously improve their marketing strategy in order to stay ahead in the competitive market.

What common weaknesses can a competitive analysis identify?

Identifying weaknesses by analyzing the competitive advantage is a crucial aspect of competitive analysis.

This process helps companies to understand their position in the market and identify areas where they may have weaknesses compared to their competitors.

By thoroughly analyzing the strengths and weaknesses of competitors, companies can identify opportunities for improvement and develop strategies to overcome their weaknesses.

This analysis enables companies to make informed decisions, challenge existing beliefs and improve their marketing strategies to gain a competitive advantage in the market.

How can geographic targeting be used as a strategy in competitive analysis?

Geographic targeting can be used as a strategic approach in competitive analysis to gain a competitive advantage.

By focusing on specific geographic locations, companies can tailor their marketing efforts to the individual needs and preferences of customers in those areas.

This targeted approach enables companies to allocate resources effectively, optimize their marketing strategies and establish a strong position in specific markets.

By understanding the geographic landscape and using it strategically, companies can position themselves against competitors and maximize their marketing success.

What are some potential disadvantages of a competitive analysis?

Disadvantages and limitations of the competitive analysis include the need for action and the potential for confirmation bias.

Competitive analysis provides valuable insights for pricing, marketing and product improvement, but requires proactive decision making to benefit from the results.

In addition, there is a risk of confirmation bias, where pre-existing beliefs can influence the interpretation of the analysis.

To overcome these limitations, it is important to use analysis to challenge existing beliefs and update them regularly to stay informed of market trends.

How often should a company update its competitive analysis to stay informed about market trends?

The frequency of market research plays a crucial role in staying informed about market trends. To ensure a competitive advantage, companies should regularly update their competitive analysis. This allows them to identify emerging threats and weaknesses and adapt their marketing strategies accordingly.

This strategic approach enables companies to understand the strengths and weaknesses of their competitors and outperform them in the market. In today's dynamic business environment, regularly updating competitive analysis is essential for sustainable marketing success.