Benchmarking – Smartest Way to do Competitive Analysis

Competitive Analysis

by Reviewkeg Staff Writer | March 3, 2017

‘Survival of the fittest’ is a phrase that also applies to the competitive world of business. Every business – not to mention whether small or big has its competitors. Having a competitor in your segment is important as it tells you about strength and weakness of your business plan. Competitors should not be taken for granted. According to forbes, competition is very healthy for a business growth. And those businesses who tend to keep their eye on competitors are more likely to be succeed in competition.

Competitive Analysis – Choosing Competitors in Right Way

Choosing the right competitor is very critical for your business. Those businesses who always have their eye on your target market and particularly your consumers, need not be your competitor always. There is a big difference between your competitors and their competitors. Any small firm or business can choose you as a competitor but still they are not in your competition. Competition should be always neck to neck or shoulder to shoulder. A strategic competitive analysis should be done time to time in order to find hidden as well as obvious competitors in your segment.

“Competitive Business Analysis is also termed as Benchmarking since businesses use some common metrics to evaluate the differences between their competitors and these differences can be used to benchmark their rival in their market segment.”

Following criteria should be used while doing a competitive analysis:

  • Brand Similarity – Businesses or companies who have this criteria in common can be considered as competitor considering some other points in mind.
  • Business Goal or Vision – Those having the same kind of goals or in other words have same kind of target consumers can be considered in the competition.
  • Business Process – Those who have the same kind of services or product process can be considered as a competitor.
  • Core competencies – Those who use the same kind of Technologies, team or strategy can be competitors.
  • Strength of Capital – Those firms or businesses who have financial strength to enter in a unique target market.

Benchmarking – The Right Way to perform Competitive Analysis

In today’s era of Business world, where most businesses are competing against each other, it’s no point of surprise when things change with the speed of light. Thus, to remain at the peak in this competitive environment, it is must for a business to implement a healthy benchmarking strategy

Benchmarking measures your performance against that of a competitor’s business. Additionally, technology-backed analysis of all aspects of your business, the areas that need to be revamped, and the right ways of going about the same (in line with that of others in the industry) promises better business growth and performance. So, how do you go about it all?

Experienced online reputation management services use the latest tools and techniques for evaluating the opportunities for making their clients business grow. They benchmark and compare pre-defined standards, indulge in SWOT analysis of competitors, and compare competitor results to chalk the way forward.

SWOT Analysis of a website – Make it the perfect Way!

Benchmarking measures your performance against that of a competitor’s business. Additionally, technology-backed analysis of all aspects of your business, the areas that need to be revamped, and the right ways of going about the same (in line with that of others in the industry) promises better business growth and performance. So, how do you go about it all?

Experienced online reputation management services use the latest tools and techniques for evaluatingthe opportunities for making their clients’ business grow. They benchmark and compare pre-defined standards, indulge in SWOT (Strength, Weakness, Opportunity and Threat) analysis of competitors, and compare competitor results to chalk the way forward.

Infographic - SWOT Analysis of a Business

Following are some of the key steps to a perfect benchmarking used by online reputation management services:

  1. Measuring your business performance

    Identification of what needs to be benchmarked (with specific and direct questions) is important. Who are these competitors? What are they dealing in? Have they incorporated new pricing strategies? What makes their competitive advantages / disadvantages different from yours? The qualitative and/or quantitative research conducted by online reputation management serviceswould work wonders for your overall business strategy. Go for it.
  2. What are the tactics used by your competitors?

    As most businesses are benchmarked within the industry they operate in, experts in competitive analysis find it easy to identify the tactics used by others. They assess the areas where competitors are handling things in better ways – think labor problems, increased costs of raw materials, unreasonable transportation costs – the list is endless. Once there, they figure out similar strategies after keeping in mind the resources available to you.
  3. What’s trending?

    Probably you are so caught up with day to day operations that you have little or no time to analyze current market trends or take a look at competitor statistics. It is vital to know if they are gaining on you, and how. Agencies responsible for evaluating the business performance of their clients are knowledgeable about current trends and shifts impacting any industry. They help you plan ahead and cater to your objective and customer needs combining. Competition is Healthy only if done in right way !

The right competitor information will go a long way in helping you find more. What makes your competition have the edge? Is your rival firm eating into your customer base? Are their engagements better, faster and more frequent than yours? Healthy competition may be a good thing, but too much competition has to be dealt with in the proper way to perform effectively.

Go for it!

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