Summary: Looking to carve a niche in the market? Here is how to conduct a competitive analysis for your startup business.
Being a startup, it is difficult to make a mark in the business world where the competition is exceptionally high. However, conducting a competitive analysis helps you size up your competition by identifying its strategies, strengths, and weaknesses.
Conducting an analysis gives you an idea about your competitors and how receptive the market is to your products and services. To grow your startup business, it is essential to understand what works or does not work for your business.
Competitive analysis can help you learn from your competitors' mistakes and discover trends you can implement into your practice. If you want a professional guide, you can also hire a business coach for your startup.
But as a new business, you must learn how to conduct a competitive analysis as it is an integral part of your startup process.
Want to learn how to do a competitive analysis? Here are six steps to do it successfully:
Step 1- Identify Your Competitors
The first and foremost important step is to find your competitors. There are two types of competitors- Direct and Indirect.
Direct Competitor: A brand selling similar products or services to the same customer base as your business is your direct competitor.
Indirect Competitor: Your indirect competitor is a brand that sells a similar product but to a different customer base or sells other products to a similar customer base.
If you work closely with the best business coach for entrepreneurs, they can help you narrow down your competitors' list.
To find these businesses, you can do a web search or use specific tools available on the internet. Find as many direct and indirect competitors as possible to understand who you are up against.
Step 2- Analyze the Online Presence of Your Competitors
Today, everything is digital! From food to clothes, healthcare to travel, every brand is trying to build its online presence. So, once you have identified your competitors, assess their online presence by evaluating their websites, social media accounts, and how they are engaging with their audience.
Along with good digital marketing strategies at the forefront, an excellent opportunity to stand out is to have a website that offers an excellent user interface, robust design, and a solid plan to engage with your customers on social media.
Step 3- Check Online Reviews
Customer feedback can give an insight into the customer experience a company is providing. Hence, visit sites such as Google, Facebook, Twitter, Instagram, or any other platform where your competitor is present. Consider how it is replying to the customer's queries and negative comments.
Whether it is a negative review or a positive review, you can understand a brand's operation, where a negative review can help you know where these brands are lacking and how you can prevent similar situations. Positive feedback will help you identify what your competitor is doing right and how you can improve.
Step 4- Talk to Your Competitor's Customers
As you read online reviews, please note people whom you would like to speak to and reach out. Talking with customers and understanding where they face challenges helps you understand why they had a bad experience. Make them believe that you will fulfill their unmet business needs. In the end, thank them for their time and offer a solution through your business. Hire a business coach for professional guidance for your business.
Step 5- Identify their Strengths & Weaknesses
Once you have accumulated all the essential information, compile it in one place and conduct a SWOT analysis. You can use this information to improve your own startup business and focus on the area that needs improvement.
Step 6- Use Research Tools
Conducting analysis is crucial to establishing your brand in the market; it can be incredibly tedious and time-consuming. Luckily, various tools available online can make the process easier and more efficient. You can use those tools to identify your competitors, track their content and analyze the results.
If you want to build strategies for your startup business, you should perform a competitive analysis by following the steps mentioned above. You can also consult with the best business coach in India- Dr Vivek Bindra. To know more, visit www.badabusiness.com.