When we combine terms such as Internet, competitiveness, and marketing in the same action, we often hear "siren songs" offering us a benchmark of the competition: your website's ranking, impact on social media, user support, a formula with its own (and often predictable) algorithm, and a final score. Well, if that's the case, you're probably missing out on a lot of issues that should be part of your company's competitive intelligence.
We turned to Hubspot's always relevant blog to take note of an in-depth and well-documented post on the questions that should be asked in any serious analysis of the competition. Written by acquisition expert Christine White, this 9-minute read is a preview of an ebook and a kit with a demo to answer those questions—no less than 57 of them—which are structured around three fundamental blocks: business, sales, and marketing.
Competitor analysis is perhaps the most powerful tool for identifying items that are fundamental to the smooth running of the business. That is why it is important to pay more attention to it than just a few brief notes on the "online presence" of competitors. Among others, White highlights the following as relevant factors:
- Identify gaps in the market
- Develop new products and services
- Discover market trends
- Market and sell more effectively
However, in order to achieve these objectives, the first thing to be clear about is who the real competitors are, as we often tend to pay attention to those who are not. To this end, the author recommends differentiating between direct and indirect competitors. The former are "businesses that offer a product or service that could pass as a similar substitute for yours, and that operate in the same geographical area," while the latter are those that "provide products that are not the same but can satisfy the same customer need or solve the same problem."
To understand this, consider the following example: two companies offer a subscription-based product, but while Company A is focused on luxury and etiquette, Company B is focused on sports and fitness. This is a case of indirect competitors, who must be "kept on the radar" as they could change position at any time and become direct competitors. However, they should not be analyzed as thoroughly as direct competitors, as this would be a waste of resources.
Although we recommend reading the original post to gain a comprehensive understanding of the idea, it is worth highlighting here some of the questions that should be asked regarding competition, based on the blocks we are trying to analyze.
Business (Products)
- Are they low-cost or high-cost providers?
- What is your market share?
- How do you distribute your products/services?
Sales
- Do you have multiple locations, and how does this give you an advantage?
- What are your customers' reasons for not buying?
- Do you regularly discount your products or services?
Marketing
- Do you have a blog?
- Are you creating white papers or e-books?
- Do you publish videos or webinars?
- Do you have a Frequently Asked Questions section?
- Do you see press releases?
- Do you have a media kit?
- What online and offline advertising campaigns are you running?
In addition, in the marketing block, it is necessary to evaluate the content: both its publication rate and its quality, based on small samples that should be as varied as possible, in order to have a complete but manageable picture of each competitor. The analysis should also include the online user experience, calls to action, accessibility, and, now (but not only this), the response of your users, evaluating the quantity and quality of comments and interactions with the competitor.
All of the above should lead to a SWOT analysis: Strengths, Weaknesses, Opportunities, and Threats. This also involves asking some relevant questions: what works for each competitor, where do they have an advantage over your own company, or in what areas does the competitor pose a threat?
Too much? Not if it's well structured, as is the case here.
