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Predicting Their Next Move: All about Competitive Analysis

by Content Team | Last Updated: November 25, 2021

It is the responsibility of every business owner to know what their competitors are up to. While they are definitely obligated to focus on their own venture strategies and marketing plans, getting to know their rival’s next move is vital, especially if they are selling the same type of products or services. It isn’t so much about trying to avoid doing the same type of promotional ads as they do, but rather, learning to beat them at their own game.

If it happens to be your first time managing your own business, you know that this would actually work in your favor. It is like playing a game of chess where you have to anticipate your opponent’s next move. 

This method of strategy in business is what you would call competitive analysis. While some parts of the method may vary per company or industry, the principle is basically the same; you have to know what your rivals are planning and doing at the moment so that you can go beyond with your own actions the next time you would promote something.

It is creating something bigger than what they can offer, thus, potentially stealing their spotlight, their customers, their sales in the process. If you want to know more about it, here are a few more helpful pieces of information.

1. The Method of Competitive Analysis

Its method involves asking vital questions that may be answered by analyzing your rival company’s recent progress such as their decisions and those that may have triggered their successes and failures. Asking about their offered products, target audience, current strategies to reach these audiences, their past strategies that they no longer use, and their social media posts are just a few examples that may complete your checklist of analysis.

It is important to remember that competitive analysis is by no means a fortune teller trick trying to predict your rival company’s next move; rather, it is a process of looking at their past actions to determine their future decisions.

2. The Process of Identifying Their Weakness

The area where they may fail would be your next playing field of opportunity. It isn’t so much about your continuing where they left off, but rather identifying their mistakes so that you would know how to do their preliminary process better than them. 

This is comparable to a certain brand of bags that happened to make the crucial mistake of selling their items at a higher price due to the materials that they used. Their bags didn’t sell, so their rivals took the opportunity to create a similar design and sell it off, albeit using a much affordable material and selling it at a lower price. They succeeded.

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3. The Right Time to Use Competitive Analysis

You may actually choose to do it regularly if you want to, but due to the time-consuming nature of this method, you may instead execute it during three crucial moments: when developing a new product or service, when your rivals are developing their own product or service, or when you are just starting up your venture.

Nonetheless, there is no bad timing when doing it; you just have to do it quickly before your company rivals get ahead of you in the market.

Conclusion

Competitive analysis can be a valuable tool for you if you intend to get ahead of your competitors. The thing about this method is that it is fairly simple to do, so as long as you know all the basics of doing it without your rival companies even getting wind of what you are up to.

With that being said, learn about the ins and outs of the method, identify the competition’s weaknesses, and pick the right time to do it efficiently. Master the art of analyzing their next move, and you will be untouchable with your sales figures.

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