COMPETITOR ANALYSIS Meaning and
Definition
-
Competitor analysis refers to a systematic and comprehensive process of identifying, evaluating, and understanding competitors in a particular market or industry. It is a crucial aspect of strategic planning and marketing, aiming to gain insightful knowledge about the strengths, weaknesses, strategies, and performance of competitors.
This analysis involves gathering and analyzing data from various sources, such as competitor websites, marketing materials, financial reports, industry publications, and customer feedback. The primary objective is to gain a competitive edge by identifying opportunities, threats, and potential gaps in the market.
Competitor analysis typically includes studying factors like competitor product offerings, pricing strategies, target markets, distribution channels, marketing campaigns, customer retention techniques, and innovation efforts. It also involves analyzing competitor strengths and weaknesses in terms of brand recognition, reputation, market share, customer loyalty, resources, and capabilities.
By conducting a thorough competitor analysis, businesses can identify areas where they can differentiate themselves and develop effective marketing and business strategies. This analysis aids in identifying potential threats and emerging trends, allowing businesses to proactively respond to market changes and stay ahead of the competition. Furthermore, it helps businesses to understand customer needs and preferences and evaluate their own weaknesses and strengths relative to competitors. Overall, competitor analysis is a vital tool that aids in making informed decisions, developing effective marketing plans, and maintaining and improving market positioning.
Etymology of COMPETITOR ANALYSIS
The word "competitor" comes from the Latin word "competitor", which means "one who seeks or strives for" or "rival". It is derived from the verb "competere", meaning "to strive together", "to contend", or "to be equal to".
The word "analysis" comes from the Greek word "analusis", which means "a breaking up" or "an unloosing". It is derived from the verb "analyein", which means "to loosen up" or "to unloose".
When combined, "competitor analysis" refers to the practice of analyzing and evaluating one's rivals or opponents in a competitive environment.
