If you are running a B2B firm, keeping a close eye on your competitors should be part of your marketing strategy for business growth. Indeed, analyzing your competitors can be a great source of learning in the B2B realm. A competitive analysis not only allows you to understand your competitor’s strengths and weaknesses, but helps you learn how they deliver better results.
There is no doubt competitive analysis is complex and time-consuming, especially for B2B businesses. Figuring out and evaluating the competitor’s strategies is a significant challenge that every B2B business needs to overcome. That’s when the competitive analysis framework comes into play! Here’s this insider’s guide to understand the importance
of competitive analysis and the competitive analysis framework in the B2B world. Let’s get down to business.
Competitive Analysis: Important Statistics
- ● According to a study by Harvard Business Review, approximately 80% of businesses conduct some form of competitive analysis as part of their strategic planning process.
- ● In a survey by McKinsey, around 75% of executives stated that competitive intelligence significantly impacts their company’s bottom line and helps in identifying growth opportunities.
- ● According to Forrester Research, 64% of marketing executives believe that competitive intelligence is essential for driving market success.
- ● A survey conducted by Deloitte says, 76% of companies reported that they use competitive analysis to inform their decision-making processes.
The Need for Competitive Analysis B2B Realm?
Competitive analysis helps assess where your company is at when you compare it to one or more competitors. Here are a host of points that explains why every B2B company needs competitive analysis:
- → Spot new opportunities by understanding gaps in the market.
- → Learn about the current market position.
- → Improve differentiation in marketing and sales messaging.
- → Research and analyze new competitors.
- → Discover the strengths and weaknesses of the company and its competitors.
- → Highlight business offerings and initiatives.
- → Create powerful B2B go-to-market strategies.
- → Analyze and implement industry trends.
Challenges B2B Businesses Face During Competitive Analysis
Performing competitor analysis
The very first challenge B2B companies usually face is how to perform competitive analysis. An in-depth analysis of several rivals would take an expert around a full day or more, which businesses can’t afford—other core aspects of the business need to be taken care of.
Understanding what to examine
Understanding what to examine to maximize its value is another challenge B2B firms generally face. Businesses must understand what competitors they should include in the analysis. It might be challenging to focus on a manageable number of competitors in highly competitive markets where several businesses cater to the same audience.
How often to perform the competitor analysis
One of the common challenges is deciding on how frequently to perform the analysis. B2B businesses need to consider the amount and nature of data when determining how often to conduct analysis.
Gaining value from competitor analysis
One challenge is how to utilize competitive analysis effectively. When prioritizing and taking action, achieving excellent results is essential, isn’t it?
Competitive Analysis: Identifying Potential Business Threats
Do you want to know how businesses can spot potential threats and stay ahead of the competition? By conducting a competitive analysis, companies can gain valuable insights into their market and identify areas for improvement. Let’s dive into the three steps given below.
Step 1: Identify the critical threats
It’s important to assess the risks that your business may face. Common threats that companies often encounter include:
- ● Greater competition
- ● Economic situations
- ● Governance and politics
- ● Supply problems
- ● Market trends
- ● Updates in technology
Step 2: Develop a Strategy
In order to identify potential threats, it is necessary to stay up-to-date with real-time information. Therefore, the following steps should be taken to create a strategy for monitoring each critical area:
- ● Assign someone on your team to monitor threats.
- ● Make a list of the information sources you want to follow.
- ● Choose the correct tracking and organizing tools for your data.
Step 3: Talk and respond
To make the threat detection process profitable for your company, utilizing the information you receive is essential. It is crucial to collaborate with your team to prioritize which risks to address and their urgency.
What is Competitive Analysis Framework?
Let’s start with the definition.
A competitive analysis framework is a strategic tool B2B businesses use to assess and evaluate their competitors’ strengths and weaknesses. It helps organizations identify opportunities and threats in the market, allowing them to make informed decisions and gain a competitive advantage.
Key aspects of competitive analysis framework:
Purpose: The goal of an ideal competitive analysis framework is to determine how a company’s products, services, and overall business strategy compare to those of its competitors.
Elements: A standard competitive analysis framework includes:
- ● Identifying key competitors
- ● Market share
- ● Analyzing their products/services
- ● Pricing strategies
- ● Marketing tactics
- ● Target audiences
- ● Competitive advantages
Importance: Competitive analysis is crucial for business planning, product development, efficient marketing strategies, and identifying potential partnerships or acquisitions.
Tools & Techniques: A plethora of tools and techniques can be used for competitive analysis, such as SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) and market research surveys.
Sources of Data: Competitive analysis depends on assembling data from public sources, industry reports, social media, market research reports, company websites, and customer feedback.
Industry Applications: Competitive analysis frameworks are commonly used in a myriad of industries, including technology, retail, healthcare, finance.
Company Expert’s Competitor Analysis Playbook
This competitor analysis playbook by Company Expert offers a comprehensive framework for B2B companies to assess their most influential rivals. This playbook helps you understand the strengths and weaknesses of competitors, enabling companies to design plans that provide them with a competitive edge.
Why Use this Playbook for Competitor Analysis?
The competitor analysis playbook can be quite helpful if you want to evaluate your competition and understand the competitive environment. This playbook can provide valuable insights that can help you position your B2B firm for success. Using this playbook, you can analyze the marketing initiatives of your rivals. With the competition analysis playbook, you can discover your competitors through SEO, AdWords, social media, email, and website traffic investigations.
Who can use this Competitor Analysis Playbook?
This Competitor Analysis Playbook can be used by any individual or organization in the B2B world interested in gaining insights into their competitors’ strengths and weaknesses. Whether you are a marketer, business owner, or researcher, this playbook provides a step-by-step guide to help you analyze your competitors and develop effective strategies to stay ahead in the market.
A competitor analysis playbook helps businesses evaluate their industry and compare themselves to competitors. It provides templates and executive summaries for senior teams and sales and marketing staff to use.
Build a Strong Competitive Edge with Company Expert
We at Company Expert offer services to drive growth for B2B firms. With our B2B business growth strategies, we strive to transform your business the way you always wanted to. You can incorporate our competitor analysis playbook into your business plan to help you perform a competitive analysis efficiently. Feel free to reach out to us for more information.