Competitive Landscape Analysis (Part 1)
Develop a fierce competitive strategy as you evaluate not only your direct but also secondary competitors with our Competitive Landscape Analysis (Part 1) presentation. Competitive landscape analysis helps you see how you differ from your competition, better communicate this contrast to your customers and target marketing and sales more efficiently as you become aware of your competitors' limitations.
Use this slide to communicate the benefits of competitive landscape analysis to your team. These include identifying your own and your competition's strengths and weaknesses and identifying where you stand out.
With this slide, share your findings and data about the current state of international competition. Introduce the information by region and let your stakeholders know how you can use the data to be more competitive globally.
The Kano Model helps you measure customer satisfaction with your product. This slide will allow you to demonstrate what you learned about the state of your clients' happiness and how to apply it to your product or service improvement.
"A Competitive Landscape Analysis gives businesses a comprehensive view of their industry terrain. Without taking a moment to look around at what everyone else is doing, you're likely to miss a key opportunity, or be left behind as your competitors outpace you in their response to market demands," per a marketing agency, Build Create. The main benefits of creating competitive landscape analysis, the Build Create team says, are:
- Competitive landscape analysis helps you to become more self-aware as a brand
- It defines areas of weakness and opportunity in the market
- Such analysis shows you where you can stand out from the pack of competitors
- It helps to identify small ways to signal who you are within your industry
- It eliminates surprises from the competition
- Most importantly, if you don't have an eye on the competition, you're running blind
Here are the steps for creating a successful competitive landscape analysis, per product management solution platform, OutCry:
- Create a competitor content analysis – for your landscape analysis to provide powerful information, you should rely on more than Google searches. You can use tools, such as SEMRush to find out who's linking to your competition and what keywords they're ranking for in organic internet searches. Also, sign up for competitors' blogs or mailing lists to see what messages are being communicated to customers.
- Monitor social media – pay attention to the hashtags your competitors use and the type of content they produce on social media. "Find out how their engagement is compared to yours and get ideas on how you can improve. Instead of manually tracking your competitors, you can use a tool like SocialPilot to track your competition across multiple social media channels," the experts say.
- Create a competitive matrix – create a competitive matrix and record the information you have collected, so it's well organized. Identify the key features that are important to your customers, then rank yourself and your competitors in each category. As a last step, the experts say, use the matrix to determine where your company stands out and highlight those features for marketing and sales training.
"Whenever I've asked senior executives to map the positions of their company's brands and those of key rivals, we end up confused and dismayed," Richard D'Aveni, the Bakala Professor of Strategy at Dartmouth College's Tuck School of Business, shares. To solve this problem, D'Aveni came up with a tool companies could capture competitive positions graphically to serve as the basis for strategy discussions. He calls this tool "a price-benefit positioning map."
Here's what D'Aveni recommends to do to draw effective positioning maps:
Define the market
To draw a meaningful map, you must specify the boundaries of the market in which you're interested. Identify the consumer needs you wish to understand. You should cast a wide net for products and services that satisfy those needs, so you aren't blindsided by fresh entrants, new technologies, or unusual offerings that take care of those needs. Next, choose the country or region you wish to study. It's best to limit the geographic scope of the analysis if customers, competitors or the way products are used differ widely across borders. Then decide if you want to track the entire market for a product or only a specific segment if you wish to explore the retail or wholesale market, and if you're going to track products or brands.
Choose the price and determine the primary benefit
Specify the scope of your analysis of prices, D'Aveni says. You have implicitly decided whether to study retail or wholesale prices when you choose which market to focus on, but you must also consider other pricing parameters. Choose whether to compare initial prices or prices that include life cycle costs, prices with transaction costs or without them, and the prices of unbundled or bundled offers. These choices depend on the yardstick that customers use in making purchasing decisions in the market under study. Remember to be consistent about the price definition you use while gathering data, D'Aveni warns.
Plot positions and draw the expected-price line
When the primary benefit is identified, draw a positioning map by plotting the position of every company's product (or brand) in the marketplace in accordance with its price and its level of primary benefit. Finally, you must draw the expected-price line – the line that best fits the points on the map and shows how much customers expect to pay on average to get different levels of the primary benefit.