What are the competitors? 03 Types of Competitors You Need to Know About

Đối thủ cạnh tranh là gì? 03 loại đối thủ cạnh tranh bạn cần biết

Competitor analysis is something every business must do. So, who are the competitors? What competitors might a company encounter? How to effectively analyze competitors? Readers, let’s find out these things through the following article by Ms. Uptalent!

1- What are the competitors?

Competitors are businesses that sell the same products and services and have similar target customers.

The products sold by these companies may be completely identical or similar. During the business process, they can compete on many different aspects to achieve the expected market share and sales.

One of the typical examples of big competitors is Pepsi and Coke. These two companies sell the same product. They continually use different strategies to gain market share and grow their brand.

What are the competitors?

2- Rank the competitors

A company’s competitors are often classified into 3 main groups:

2.1- Direct competitors

These are companies that sell the same products as your company. They target the same target customers, have the same selling price and equivalent competitiveness. Therefore, you should pay special attention to this group of competitors when analyzing.

2.2- Indirect competitors

This group includes companies that offer products that are different from the company’s but meet the same customer needs. Products offered by indirect competitors are often called substitute products.

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In fact, many substitute products have emerged that have completely changed customer needs. One of the most typical examples that clearly shows this is technology products.

2.3- Potential (or potential) competitors

It is a group of companies that have the ability to enter the market and compete with companies in the same customer segment, field and industry.

This group of competitors may become partner companies or competing companies in the future when they choose to enter the market and expand their business.

Competitor ranking

3- Why analyze competitors?

Every business has competitors. This pushes companies to put more effort into production and business activities to deliver quality products.

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Here are the reasons why businesses should analyze their competitors:

3.1- Competitor analysis helps businesses understand the business market better

The process of competitor analysis not only helps businesses get an overview of rival businesses, but also helps them better understand the market, industry development trends, and seize good business opportunities.

3.2- Understand strengths and weaknesses

Through analytics, businesses can understand their competitors’ strategies, business processes, and their strengths and weaknesses. Through this, companies will establish more appropriate and effective business directions and plans.

3.3- Improve competitiveness in the market

By analyzing competitors, companies will have appropriate business, marketing, distribution and product development strategies. This constant improvement will help them gradually improve their competitiveness and create a strong position in the market.

3.4- Optimize marketing effectiveness

Based on the results of competitor analysis, companies can optimize their marketing strategies by developing advertising and promotion plans, RP Adjust.

When marketing effectiveness improves, businesses will reach more new customers and brand recognition will also increase sharply.

Analyze competitors

3.5- Make accurate investment and business decisions

Analytical activities not only help companies clearly understand the market situation, but also create a solid basis on which to make investment and business decisions.

Thanks to accurate information, companies will reduce investment risks and increase efficiency several times more than before.

4 to 6 steps to help you effectively analyze your competitors

To effectively analyze competing businesses, you can apply the following 6 steps:

4.1- Make a list of competing companies

You should make a list of 7-10 companies to select the appropriate objects for analysis. Criteria you should keep in mind when compiling a competitor list include:

– Companies with commercial establishments and similar products.

– Have identical or similar customers.

– New companies entering the market or companies with a lot of experience.

You can find this information on competitors through channels such as: Google, online advertising media, social networks, e-commerce platforms, customer interviews, and monitoring of competitors’ advertising publications.player, etc.

4.2- Classification of competing companies

Next, you will need to categorize your competitors based on different levels of competition. Concretely, you must determine whether it is a direct, indirect or potential competitor.

Steps to Analyze Competitors

4.3- Collect information on competitors

There are 5 types of information you should collect about your competitors, including:

– General information about competing companies such as their size, organizational structure, how they conduct their business activities, etc.

– Characteristics, uses, prices of competitors’ products and services.

– Structure of the distribution channel and how to organize activities on the channel.

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– How to carry out competitor communication and marketing online and offline.

– Collect customer comments and perceptions about competing companies.

4.4- Analyze the marketing strategies applied by your competitors

There are four types of marketing strategies commonly applied today: market penetration strategy, product development strategy, market development strategy, and diversification strategy.

Your task is to determine which of the four strategies above is applied by your competitor. From there, you will evaluate the effectiveness and limitations of this strategy.

4.5- Use appropriate models to analyze competitors

During this step, you will analyze the strengths and weaknesses of your competitors, as well as the opportunities and challenges they face.

To analyze your competitors, you can use models such as:

-SWOT model.

– Michael Porter’s 5 competitive forces model.

– CPM competitive image matrix.

– Competitive polygon model.

– Strategic analysis of the group.

Above are popular analytical models widely used in businesses. As for which model to choose, this will depend on the purpose of your analysis.

4.6- Prepare reports

After collecting all the necessary information about your competitors, you will prepare a report and present it to your superiors in the clearest and most detailed manner.

Competitor Analysis Tool

5- Tools to help effectively analyze competitors

Today, you can use modern tools to conduct competitor analysis more efficiently and accurately.

Some tools you can refer to are:

-SEMrush

This tool allows businesses to analyze website indexes, SEO, keyword research and check rankings. From there, businesses can come up with more effective online marketing measures.

– Similar website

Similarweb lets you check website traffic, average time on page, keywords, popular media channels used to find your website, bounce rate, average page views, and more.

– Google Analytics

Google Analytics is a free tool that allows you to track traffic and user behavior on your website.

-Ahrefs

Ahrefs is the world’s leading SEO and marketing support tool with exceptional features such as: keyword, backlink, competitor analysis and related metrics tracking.

-Alexa

Alexa is a tool that helps you analyze and compare websites based on traffic and related metrics.

Alexa’s outstanding features include: analysis of website ranking, traffic, average time on page, unique users, and other related websites.

6- Tips to help you analyze your competitors accurately

To achieve optimal competitive analysis results, you should keep the following tips in mind:

– The analysis process should be carried out over a long period of time and continuously to completely update information about competing companies.

– Choose the appropriate analysis period and time to achieve higher efficiency and accuracy.

– Determine specific objectives and directions before beginning the analysis process. This will help you gather information in a much more targeted and efficient way.

– All analysis and decision-making activities must be based on clear and precise data. This will determine the accuracy of your perception of your competitors.

– Invest appropriate effort, time and costs to receive quality information more quickly.

Above are some of Ms. Uptalent’s shares on competitors with readers. I hope this article has provided you with a lot of valuable information and you can also use it to effectively identify and analyze your competitors. Good luck!

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