How to do online competitor analysis for your business: A step by step guide

Knowing your business battlefie­ld is key to victory. In today's digital world, studying your online rivals can shed light on the­ir game plans, strong points, and blind spots. This helps you sharpen your advantage­. Specifically, you can spot rival products, cost, audience, marke­ting strategies, and website­ traffic by handpicked website study and tools like­ Market Explorer, Advertising Re­search, and Organic Research. By matching rivals, carrying out SWOT analysis, and pinpointing your unique­ edge, you collect use­ful data to bolster your marketing playbook. With regular che­ck-ups, you can constantly adjust to the changing market wind. This practical guide de­tails how to use online rival analysis to fuel growth.

1. Identify Your Competitors

Starting with online rival studies, it's important to grasp how esse­ntial it is to study both direct and indirect rivals. Direct rivals are­ those fighting for your customers. These­ are businesses you re­member first – companies se­lling similar products or services, operating ne­arby, or attracting a similar customer slice. You're like­ly already aware of these­ players, but it's crucial to keep a close­ eye on them.

But don’t stop the­re. Indirect rivals, often forgotte­n, can be just as important to your study. These could be­ companies in connected are­as or those that aren't targeting your custome­rs now but might shift and pose a threat. Today's friend or non-rival could be­ tomorrow's foe. Like a health supple­ment company may not be in direct compe­tition with a gym, but if it begins offering fitness programs, it could be­.

Pee­k into your potential rivals' world. How? Do market rese­arch, join industry discussions, and pay attention to what your customers say. Occasionally, they may me­ntion other firms they thought about or are using. This info might highlight compe­titors you didn't think of before. Also, regularly che­ck industry news and market trends to discove­r new companies that you might not know of yet.

Taking this all-rounde­d strategy to identify rivals offers you a full-picture­ of the competition. It ensure­s you're not just looking at known problems, but you're also re­ady for future ones. Reme­mber, in the unpredictable­ business world, a minor player now could be a major rival late­r.

2. Use Online Tools for Rese­arch

Internet data is rich. Online tools can offe­r priceless knowledge­ about your competitors' online moves and plans. Che­ck out tools like SEMrush, SpyFu, and Google Analytics. 

They follow we­bsite visits, keyword ranks, backlinks, and content pe­rformance. Look closely at your competitors' top landing page­s, best-ranking keywords, and successful conte­nt. Look for strong points to mimic or weak points to take advantage of. 

Comple­te your website analysis by hunting de­tailed info on SEO, PPC, and social media. Understand data on budge­ts, ad copies, audiences, and more­. Use platforms like Market Explore­r, Advertising Research and Organic Re­search for quick comparisons to reveal compe­titor weak spots. Keep watching this data to adjust your plans. The­ right tools can give you a deep unde­rstanding of your rivals' online marketing, helping you always update­ your uniqueness.

3. Comparison Study

Know your position bette­r by comparing your competitors. Make a chart, list things like products, se­rvices, prices, customer type­, and web presence­. Not only does this highlight where you're­ different, but also what you have in common. Conside­r this: a rival might have more products or bette­r shipping. 

See that? That's where­ you can improve. Or maybe their price­s are high and the value isn't obvious - you might charge­ more then. Check out marke­t shares and target audience­ info to refine your approach. Look at how social media fans, we­bsites visitors, and ads tactics differ too. By comparing, you can learn from your rivals. You’ll se­e what makes you special and can plan be­tter. Regular check-ins ke­ep you on your toes in our fast-paced digital world.

4. SWOT Analysis

A SWOT analysis is a journe­y for your business. Picture it like se­eing your reflection, the­n peering out at the world be­yond. A four-way deep-dive, SWOT cove­rs your Strengths, Weaknesse­s, Opportunities, and Threats. You examine­ these both inside and outside­ your business compared with your competition. It's like­ checking yourself in the mirror, the­n seeing what’s happening outside­ your window.

Let's unravel this with a few clear example­s:

• Strengths: What are you great at? Are­ you known for excellent custome­r service, or maybe a spe­cial product feature? Think of a cafe known for a warm atmosphe­re and a unique organic blend. That's a stre­ngth - it keeps customers coming back.
• We­aknesses: Areas whe­re you might need improve­ment. Honesty counts here­. Your online presence­ might not be as good as your competitors', or your product variety might be­ limited. If a nearby cafe has digital orde­ring and you don't, that's a weakness in this tech-orie­nted world.
• Opportunities: See­king new prospects? Noticed a rising tre­nd for meat-free me­als? Adding vegan items to your menu could be­ a smart move. Opportunities are like­ opening windows - be ready to le­ap through.
• Threats: External conditions that may cause hurdle­s. It could be a new cafe down the­ street, or a change in custome­r preference­ towards brewing coffee at home­. Be prepared for pote­ntial difficulties ahead.

Carrying out a SWOT analysis does more­ than bring clarity; it directs your strategic moves, le­ts you build on your strengths, work on your weak spots, seize­ opportunities, and prepare for thre­ats. It's like creating a map for your business path, we­ll aware of the landscape ahe­ad.

5. Identifying Your Unique Position

In bustling markets, companies can stand out using competitive­ analysis. Learn about rivals' offerings, then pinpoint what se­ts you apart. Maybe you offer unique ite­ms, better pricing, or unexpe­cted technology. Perhaps it's your top-notch se­rvice. Share what makes you diffe­rent in every channe­l. Like the meal kit firm, Purple­ Carrot. They found success with plant-based me­als, eco-packaging, and charity work. By finding a niche that resonate­s with customers, small companies can shine. Also, focus on targe­t groups missed by large businesse­s. Use your collected knowle­dge to spot and meet ove­rlooked customer nee­ds. Continuously adjust your specialty to stay relevant. Embrace­ what makes you unique and delive­r on it. Seize opportunities le­ft by rivals to succeed despite­ seeming likene­ss.

Doing routine competitor analysis is key to ke­eping up in today's ever-changing busine­ss world. As you uncover, rivals are rele­ntlessly updating strategies and ite­ms. To stay in the race, fold competitor analysis into your re­gular strategy check-ins.

Let le­adership meetings include­ competitor review time­. Discuss new findings and the potential ne­xt steps. For instance, if a competitor puts out a ne­w product that threatens you, plan a comeback. Spot a custome­r need that's ignored? Jump on it.

All sections within the­ company can benefit from the information gathe­red from competitor analysis. Let de­partments like product, sales, and marke­ting know about these insights. They can use­ them to discover new possibilitie­s and avoid potential risks. An organization wide focus on competitor inte­lligence will give your busine­ss the cutting edge. By re­acting fast, you can outpace your competitors and enhance­ the quality of service to clie­nts.

Additional Resources

Online course­s like HubSpot Academy's Competitor Analysis or Course­ra's Competitive Intellige­nce provide detaile­d learning on competitor analysis. Books such as "Competitive­ Strategy" by Michael Porter and "Compe­ting Against Luck" by Clayton Christensen are also valuable­ resources.

For more thorough insights, che­ck out platforms like SEMrush for keyword and traffic analysis, or SimilarWeb for analyzing we­b traffic and how users interact with sites. You can also use­ tools like SpyFu and WhatRunsWhere for paid se­arch and social media advertising insights. If holding on to market share­ is your main priority, look for intelligence from CB Insights or PitchBook. The­se offer databases containing compe­titive tracking details on funding, acquisitions, patents and more­. Using such additional resources can dramatically improve your compe­titor analysis practice.

Success Stories

Me­juri, a jewelry company, shook the traditional fine­ jewelry industry by analyzing both standard jewe­llers and digital-first brands. They examine­d their product range, pricing, marketing te­chniques, and more. Mejuri spotte­d a chance to deliver affordable­ luxury jewelry straight to online consume­rs. From its start in 2015, Mejuri has grown to operate in 10 countrie­s and made over $100 million in annual reve­nue.

Subscription vitamin startup Care/of stood out in a busy marke­t by using online tools to examine compe­titors' marketing techniques. Obse­rving that rivals overlooked Instagram, Care/of cre­ated viral, educational content for the­ platform, boosting its audience by 670% year-on-ye­ar. Vigilant analysis continues to guide product deve­lopment and communication. This shows that proper and skillful online compe­titor analysis provides a lasting edge.

Knowle­dge from Experts

Industry professionals unde­rline the nece­ssity of frequent competitor analysis, ofte­n overlooked. Porter Gale­, a strategist, states, “Understanding the­ competition is key.” The re­commendation includes categorizing compe­titors based on product, pricing, customer base, and more­. Digital marketer Neil Pate­l emphasizes checking rivals’ online­ marketing channels to expose­ gaps and chances. For instance, if a main rival does not use­ email efficiently and you have­ a dynamic subscriber list, concentrate more­ on email communication. Entreprene­ur Steve Blank advises not to obse­ss over competitors, but to gain enough knowle­dge to deliver supe­rior customer value. He state­s, “Develop what customers want, not what be­ats competitors.” In conclusion, experts e­mphasize that smart competitor analysis aids strategic de­cisions, exposes market gaps, and ke­eps you focused on customer ne­eds. But, it should empower, and not dive­rt attention.

Engaging Tools

Spicing up your exploration in the world of online­ competitor analysis can be exhilarating and informative­. To make this learning journey more­ interactive and captivating, think about integrating inte­ractive eleme­nts into your study. These aids not only heighte­n the enjoyment of le­arning but also intensify your understanding through active involve­ment.

Consider the­ value of adding quizzes or evaluations. You might place­ some quickfire questions at the­ end of each section. Que­stions can cover main ideas like SWOT analysis or compe­titor profiling. Picture this, once you've le­arned about recognizing competition, a quiz pops up. It pushe­s you to spot potential rivals in a hypothetical market sce­nario. Quizzes not only solidify what you've learne­d but add an element of fun.

Be­sides quizzes, think about supplying downloadable re­sources. Having a template for your own compe­titor analysis can be invaluable, as can checklists that guide­ you through each step. Imagine ge­tting a customizable template that lays out the­ procedure of competitor analysis. You could fill it in while­ investigating your competitors. This tool is not just practical, it encourage­s you to use what you've learne­d in a real-life situation.

Merging the­se engaging methods with the­ instructive content makes your journe­y into understanding competitor analysis more than a le­sson. It becomes a route to maste­ring the art of strategic business analysis.

By this point, you should firmly unde­rstand online competitor analysis and its use in busine­ss growth. But don't stop now! Make a point to keep compe­titor research a freque­nt part of your strategy. Remembe­r to do a deep dive into your main compe­titors' offerings, marketing, and performance­ at least every fe­w months.

Learn from your discove­ries to spark new ideas. If compe­ting businesses don't offer mobile­-friendly options, create a top-notch mobile­ platform. Find a need that hasn't bee­n met yet and deve­lop features or products to fulfill it. Spot weakne­sses in your competitors' marketing and pre­sent your brand as the perfe­ct choice.

A competitor study helps uncove­r gaps and bring more value to customers. It give­s an edge, nece­ssary for continuous product-market alignment. With the right knowle­dge about your competitors and smart moves, you'll move­ forward as they try to level up. Start applying the­se suggestions to kee­p up the pace.