<?xml encoding=”utf-8″ ?????????>
Competitive analysis plays a critical role in today’s sharply competitive business landscape. But it is not an easy task; it can be highly labor-intensive and time-consuming, to say the least.
If not done carefully it can lead to inaccurate outcomes that can easily spell disaster for your business strategies.
While we mostly think of all that we need to do for effective competitive research, today, let us focus on the things or mistakes that we must avoid at all costs.
6 mistakes to avoid in competitive analysis
Not being aware of who your rivals are
Not knowing your rivals is one of the most common but very serious blunders committed by businesses. They tend to shortlist a few major players in the same target market, thinking that they are their sole rivals.
What if a small startup grows up and becomes your archrival? If you do not consider them when they are small, you can potentially lose out to them later. Make sure to take into account both the big and the small fish for competitive analysis, and remember you are competing with all of them.
So, the first mistake to avoid is to NEVER overlook any of the specialty and smaller businesses for the bigger players. Thoroughly micro-analyzing your entire competitive landscape will lead to accurate results to base your marketing strategies on.
Inconsistency in competitive research
Competitive analysis is a continuous process and not something you do once in a while. This is solely because your rivals are always planning their upcoming launches or actions, which makes competition not just cut-throat but also incredibly dynamic and fast.
You need to consistently monitor your rivals across all channels to stay abreast of the current happenings instead of tripping over dated details and lagging in the race. Conducting a quarterly competitive analysis can help you with the latest information about your competitors and keep you updated about market trends and consumer demands.
Not being aware of market trends
Failing to stay updated on prevalent industry trends surrounding products, technology, and competition is a guaranteed path to losing market share and appearing disconnected to both your sales team and potential customers. It is essential to continuously monitor new services, products, competitors, and technological innovations to maintain your competitive edge and stay relevant.
Use competitive intelligence while doing your initial brand research activities; pay close attention to your competitor’s activity on social platforms and identify optimal posting times to maximize engagement and reach.
Not learning from your competitors’ mistakes
Learning from the mistakes of others has proved to be useful in almost all cases, and it is no exception in the realm of business. Moreover, overlooking your rivals’ mistakes amplifies the risk of repeating them yourself. For that, you need to acknowledge and understand where they went wrong, which is possible when you are collecting insights from competitive analysis.
There is always a possibility that one of your contenders has already tested the idea you are considering. Leveraging actionable competitor insights allows you to pinpoint where the other players failed and use that knowledge to enhance your campaigns or make amendments so that you do not end up with the same outcome.
Confusing between your competitive advantages and strengths
While analyzing their competitive landscape, businesses often mistake their strengths for their competitive advantages, and this majorly happens when they do not consider the consumer’s point of view. Your competitive advantage comprises the things only you can offer to your customers, whereas your strengths are all those areas you excel at.
While highlighting your strengths is certainly crucial, you should consider the perspectives of the broader market. You can consider engaging with your sales team or directly with your customers to confirm your authentic advantages in the scope of your marketplace prowess.
Not acknowledging the achievements of your competitors
Competition in the market will exist as long as you are doing business. But, when you aim to gain a competitive advantage, you should be open-minded and accept that many of your rivals are performing better than you.
Approach this task with objectivity, identifying and acknowledging their strengths. They might outshine you in creating compelling content, have a superior content strategy, or market their offerings better than you. Regardless, keeping an open mind is the key to assessing and adopting necessary changes and promptly implementing them for better marketing outcomes.
Final words
Apart from these common mistakes, you must also be extra careful about not assessing your current business status based on old data. You need updated and latest insights to formulate effective strategies. Also, you must make sure to leverage competitive analysis to gain valuable insights and data across the entire social media landscape instead of narrowing down your focus on a couple of platforms.
