A recent blog entry on BiQ’s website describes marketing competitor analysis as an assessment of current and potential competitors’ strengths and weaknesses, an activity that aims to keep one’s enterprise on top of competitors at all times.
A case is made for sizing up one’s business rivals by drawing parallels between it and a game of chess. Both require thinking ahead and confounding the competition. However, the author, who simply went by the name “Ken,” said unlike in chess, an entrepreneur is always playing against multiple opponents instead of just one.
The author goes on to say that any move a player makes on one side of the board affects the opposing player’s next move. This then forces the other player to try to predict the rival’s next logical move. This intellectual interplay is what defines chess and, not surprisingly, it is also what defines competition in the world of business.
Ken said that one notable difference between a game of chess and a market rivalry is that in business, entrepreneurs often have enough time to research what the other company is up to. He tells business decision-makers to always use the SWOT method in navigating competitive pressures.
The author said that doing an honest-to-goodness marketing competitor analysis, even when business threats do not seem overwhelming, gives the entrepreneur peace of mind. He added that the knowledge gained gives some assurance that one’s business or brand can “bear the storm during tough times” or even prosper if one is prepared for any eventuality.
Beyond just getting inside information on business rivals, competitive analyses also helps an entrepreneur better target their shared customers. The author cited a survey showing that 41 percent of business professionals believe that good competitor information is crucial to their enterprises’ success. The same survey indicates that 52 percent of executives have come to realize that competitive intelligence leads to an increase in their company’s revenues.