Competitor research is an important part of corporate strategic planning and marketing, which can help companies understand their strengths and weaknesses in the industry, identify potential opportunities and threats, and develop effective competitive strategies. However, many companies have some common misunderstandings when conducting competitor research, resulting in inaccurate, incomplete or impractical research results, which affect the company's decision-making and execution. This article will analyze the causes and harms of these misunderstandings and propose corresponding solutions to help companies improve the quality and effectiveness of competitor research. This article is based on years of competitor research experience and cases of consulting companies, combined with the latest industry trends and data, to provide professional guidance and suggestions for enterprises.
Competitor research refers to the process of collecting, analyzing, and evaluating competitors' information to understand their strategic objectives, core competencies, market performance, strengths and weaknesses, future plans, etc., so as to provide reference and support for enterprises' strategic planning and marketing. Competitor research can help businesses to:
Understand your relative position and competitiveness in the industry, find out your strengths and weaknesses, and enhance your core competitiveness
Discover changing trends and emerging opportunities in the industry, grasp the needs and expectations of the market, and innovate your own products and services
* Competitors' movements and intentions, guarding against competitors' threats and challenges, and formulating effective competitive strategies and countermeasures;
Evaluate your strategy and marketing effectiveness, identify your strengths and weaknesses, and optimize your execution and management.
Therefore, competitor research is one of the key factors for the success of enterprises, which requires great attention and investment from enterprises. However, many companies have some common misunderstandings when conducting competitor research, resulting in inaccurate, incomplete or impractical research results, which affect the company's decision-making and execution. Based on years of competitor research experience and cases of consulting firms, we have summarized the following common pitfalls and solutions in competitor research:
Myth 1: Focus only on direct competitors and ignore potential competitors and alternatives.
Solution: Expand the scope of competitors to include direct competitors, potential competitors, and alternatives. Direct competitors refer to enterprises that compete with enterprises in the same market, the same segment, the same target customer group, and the same product or service category. A potential competitor is an enterprise that has the potential to enter the market or segment in which the enterprise is located, or is likely to move from other markets or segments to compete with the enterprise. Alternatives are different products or services that can meet the same or similar needs of customers. For example, for an automaker, the direct competitor may be other automakers, the potential competitor may be a new energy vehicle manufacturer or a self-driving car manufacturer, and the alternative may be public transportation or shared mobility services. Focusing only on direct competitors and ignoring potential competitors and substitutes will cause companies to miss out on changes and opportunities in the industry, and will also make companies lack early warning and response to competitors' threats and challenges. Therefore, companies need to expand the scope of competitors to include direct competitors, potential competitors, and substitutes to fully understand the competitive environment and competitive landscape.
Myth 2: Only collect the surface information of competitors and ignore the deep information of competitors.
Solution: In-depth analysis of competitors' strategic objectives, core competencies, market performance, strengths and weaknesses, future plans, and other in-depth information. Competitor surface information refers to the basic information of competitors that can be easily obtained through public channels or general methods, such as enterprise name, size, geographical location, product or service type, ** sales, market share, etc. Competitor in-depth information refers to the key information of competitors that can only be obtained through professional channels or complex methods, such as the company's strategic objectives, core competencies, market performance, strengths and weaknesses, future plans, etc. Only collecting the superficial information of competitors and ignoring the in-depth information of competitors will make enterprises lack understanding and insight into the real situation and trends of competitors, and will also make enterprises lack judgment and behavior of competitors. Therefore, enterprises need to deeply analyze the in-depth information of competitors to accurately grasp the characteristics and trends of competitors.
Myth 3: Relying only on a single data** or method, ignoring the validity and reliability of the data.
Solution: Diversify data** and methodologies to ensure data validity and reliability. Data** refers to the channels for obtaining competitor information, such as official**, social**, news reports, industry reports, customer feedback, expert interviews, market research, etc. Methods refer to the way competitor information is processed, such as data collection, data cleaning, data analysis, data presentation, etc. Relying only on a single data** or method, ignoring the validity and reliability of the data, will make the enterprise bias and error in the information of competitors, and will also make the enterprise lack confidence and trust in the information of competitors. As a result, companies need to diversify their data** and methods to ensure that their data is valid and reliable. Specifically, businesses need to:
Collect competitor information from multiple sources, compare and verify the consistency and accuracy of information, and eliminate invalid and incorrect information
Analyze competitor information using a variety of methods, and use quantitative and qualitative techniques, such as SWOT analysis, Porter's five forces model, value chain analysis, etc., to extract the key elements and influencing factors of competitors
Adopt a variety of methods to present competitor information, using charts, matrices, maps, etc., to present an overview and comparison of competitors in an intuitive and clear way.
Myth 4: Only pay attention to the status quo of competitors and ignore the changes and development of competitors.
Solution: Continuously track the changes and development of competitors, and adjust the information and evaluation of competitors in a timely manner. The status quo of competitors refers to the information and status of competitors at a certain point in time, such as the size of the enterprise, the type of products or services, sales, market share, etc. The change and development of competitors refers to the changes and trends in the information and situation of competitors over a period of time, such as the growth of enterprises, the innovation of products or services, the adjustment of products, the fluctuation of sales, the changes in market share, etc. Focusing only on the current situation of competitors and ignoring the changes and development of competitors will make the information and assessment of competitors outdated and backward, and will also make enterprises lack sensitivity and response to the opportunities and threats of competitors. Therefore, enterprises need to continuously track the changes and development of competitors, and adjust the information and evaluation of competitors in a timely manner. Specifically, businesses need to:
Regularly update the information of competitors, and capture the new dynamics and events of competitors in a timely manner, such as mergers and acquisitions of enterprises, product or service releases, changes in sales, market share reports, etc.;
Regularly analyze the changes and development of competitors, and identify new trends and new models of competitors in a timely manner, such as the strategic transformation of enterprises, product or service differentiation, optimization, sales growth, market share expansion, etc.;
Regularly evaluate the strengths and weaknesses of competitors, and adjust the strengths and weaknesses of competitors in a timely manner, such as the company's brand influence, the quality of products or services, the competitiveness of the company, the stability of sales, and the market share.
Myth 5: Only do the information collection and analysis of competitors, and ignore the application and implementation of competitors' information.
Solution: Apply competitor information to the company's strategic planning and marketing, and develop and implement effective competitive strategies and measures. Competitor information collection and analysis refers to the acquisition and processing of competitors' information through various channels and methods to form competitors' information databases and reports. Competitor information application and implementation refers to the development and implementation of the company's strategic planning and marketing based on the competitor's information to achieve the company's goals and vision. Only doing the information collection and analysis of competitors, ignoring the application and implementation of competitors' information, will make the enterprise waste and useless information of competitors, and will also make enterprises lack actions and results on competitors' information. Therefore, enterprises need to apply the information of competitors to the strategic planning and marketing of the enterprise, and formulate and implement effective competitive strategies and measures. Specifically, businesses need to:
According to the information of competitors, determine the strategic goals and directions of the enterprise, such as the vision, mission, values, core competitiveness, differentiation advantages, etc
According to the information of competitors, formulate strategic planning and programs of enterprises, such as market positioning, target customers, product or service mix, strategy, channel strategy, etc
According to the information of competitors, the implementation of the company's strategic planning and programs, such as the company's brand building, product or service development, implementation, activities, channel management, etc.;
Based on competitor information, evaluate the effectiveness of the company's strategic planning and programs, such as the company's sales, market share, customer satisfaction, brand awareness, profit margin, etc.
Summary: Competitor research is one of the key factors for the success of an enterprise, which requires great attention and investment from enterprises. However, many companies have some common misunderstandings when conducting competitor research, resulting in inaccurate, incomplete or impractical research results, which affect the company's decision-making and execution. This paper analyzes the causes and harms of these misunderstandings, and proposes corresponding solutions to help companies improve the quality and effectiveness of competitor research. This article is based on years of competitor research experience and cases of consulting companies, combined with the latest industry trends and data, to provide professional guidance and suggestions for enterprises.