COMPETITIVE ANALYSIS Meaning and
Definition
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Competitive analysis refers to the systematic examination and evaluation of the strengths and weaknesses of companies operating within the same industry or market segment. It is a crucial component of market research that seeks to identify, understand, and analyze the strategies and performances of competitors in order to gain a competitive edge.
The objective of competitive analysis is to assess various aspects such as pricing, product offerings, market share, marketing strategies, customer base, distribution channels, and overall business operations of rivals. It involves collecting and analyzing data from multiple sources, including company websites, financial statements, industry reports, customer reviews, and market surveys.
By conducting a comprehensive competitive analysis, businesses can identify their position in the market, understand their competitors' strategies, and uncover opportunities for growth and improvement. It allows companies to benchmark their performance against the industry's best practices and identify areas where they can differentiate and outperform their rivals.
The insights gained from competitive analysis serve as a basis for developing effective marketing and business strategies. It helps businesses to identify their unique selling proposition, anticipate market trends, identify potential threats, and capitalize on competitors' weaknesses. Ultimately, competitive analysis allows businesses to make informed decisions that enhance their competitive position and drive sustainable growth in the market.
Etymology of COMPETITIVE ANALYSIS
The word "competitive analysis" is a combination of "competitive" and "analysis", each with their own etymology.
1. Competitive: The word "competitive" is derived from the Latin word "competere", which means "strive together, contend", ultimately from "com-" meaning "together" and "petere" meaning "to seek, aim at". It dates back to the mid-17th century and relates to the idea of confrontation or rivalry among individuals or entities.
2. Analysis: The term "analysis" comes from the Ancient Greek word "analysis", derived from "ana-" meaning "up, back, again" and "lysis" meaning "a loosening" or "untying". It entered the English language in the 16th century and refers to the process of breaking down something into its constituent parts to understand it better or draw conclusions.
