What is a competitor analysis?

A competitor analysis is fundamentally the process of evaluating the strengths and weaknesses of competitors in a specific market. This involves gathering information about their products, services, marketing strategies, and operational efficiencies, which enables a business to understand its competitive landscape. By identifying what competitors do well, a business can leverage those insights to enhance its own offerings or strategies. Similarly, recognizing competitors' weaknesses offers opportunities for a business to differentiate itself or capitalize on gaps in the market.

This analysis plays a critical role in strategic planning, allowing businesses to make informed decisions regarding pricing, marketing, product development, and overall positioning within the industry. It goes beyond mere observation; it is an in-depth examination that considers various factors such as market share, customer engagement, and innovation capabilities.