When’s the last time you conducted a market analysis? How about a competitive analysis? They are two of the most beneficial things you can do to attract clients when running a business. When you regularly analyze the market and your competitors, you learn more about your customers and their needs.
Some think conducting these analyses just once is enough. The most successful business owners are those who make market and competitive analyses a habit – perhaps once a quarter.
What’s a market analysis?
A market analysis is an assessment of a specific industry. In short, it reveals how much an industry is needed, who needs it, and how saturated an industry is by competitors.
What’s a competitive analysis?
A competitive analysis, on the other hand, is the study of other businesses who provide same, or similar, products/services. It’s a deep dive into competitors’ products/services, sales, and marketing strategies.
If your business is overdue for a market and/or competitive analysis, keep these questions in mind next time:
- Are there any specific market patterns? Such as products/services that increase or decrease depending on the time of year?
- What kinds of products/services are your competitors selling? Are there any that are gaining popularity or rapidly increasing in sales?
- What are some industry benchmarks? For example, are there specific metrics or standards that you should use to measure success in your business? Is there a certain profit amount that’s common in your industry?
- Who are your top competitors in your industry? Are their prices higher, lower, or similar compared to yours? What methods or platforms do they use to sell their products/services? Is there anything they aren’t doing that you think could be beneficial?
It’s also worth noting that market and competitive analyses aren’t just for people who are first starting out; they can be conducted at any point. It doesn’t matter if you’re fresh in business or been at it for a decade – if you’re feeling uncertain, unmotivated, or just need some additional information about your industry, market and competitive analyses can provide a ton of insight for your business and uncover info you may not have otherwise realized!