Basics of Competitor Analysis in Marketing: Finding Your Place in the Market

Did you know what's common between the game "Monopoly" and successful business in today's market? The key difference is competitor analysis! It's through this that one can build effective companies and unravel the secrets of entrepreneurship. We'll share the secrets and nuances of quality competitive analysis and explain how this method works in practice.

Economic Analysis and Competitor Analysis: How to Use Them Effectively?

Economic analysis focuses on studying all aspects of a company's economic activities. It covers a wide range of issues such as costs, profits, investments, financial status, taxes, and more. The main goal of economic analysis is to make businesses more efficient and profitable.

Competitor analysis has different goals. It focuses on studying other players in the market and the specifics of their behavior. The main goal is to understand how your competitors operate, what products or services they offer, how they position themselves, and what opportunities and threats they pose to your business.

Analysis Stages

• Gathering information. Collect as much data as possible about companies operating in your niche. This could include information about products or services, prices, marketing strategies, reputation, economic indicators, and other factors influencing their business.
• Analysis of strengths and weaknesses. Evaluate what your competitors do better and what weaknesses they have. This will help you find opportunities to improve your own business.
• Assessment of opportunities and threats. Identify potential opportunities and threats that may arise from competitors' actions. Based on economic research, develop a strategy for your own business.
• Defining brand uniqueness. The ultimate goal is to develop a strategy that will help you stand out in the market and create a unique proposition for your audience.

How to Choose and Occupy Your Niche?

To find your place in the market and start a successful business, it's important to use economic and competitive analysis to make informed decisions. Here are a few examples demonstrating the importance of conducting competitive analysis for business development:

1. Pricing competition analysis.
   Suppose you plan to open a café in a town where two other establishments already exist. Through economic analysis, you discover that your competitors offer coffee at an average price of 70 hrn per cup. To find your place in the market, you can offer a lower price for coffee – say, 55 hrn per cup – thus creating a competitive advantage and attracting more customers.
2. Target audience analysis.
   When developing a new product, such as a modern mobile app for healthy eating, you carefully analyze your target audience. In this case, you'll need not only economic research but also in-depth knowledge of psychology to create a product that meets customers' expectations and needs. You find that your app will be particularly popular among young people who have little time to prepare meals. Using economic analysis, you calculate how much these customers are willing to pay for your product and how you can maximize your profit from this audience.
3. Competitor advantages.
   When opening an online electronics store, you find that your competitors have already gained customer loyalty through reliable service and a wide range of products. You decide to focus on a different niche, such as selling exclusive gadgets and accessories. Economic analysis will help you calculate how to optimize inventory and reduce costs to achieve success.

The examples above demonstrate how economic analysis can be used to find your place in the market and create competitive advantages. Remember, such analysis is relevant in all aspects of business—from pricing strategy to choosing a target audience and optimizing operations.

Knowledge is the Key to Great Business

Successful business is the result of informed actions, planning, and economic analysis. Just like in the game "Monopoly," in business, you need to carefully choose your path to achieve the desired result. So don't miss the opportunity to gain knowledge and skills in entrepreneurship. Develop your business potential, enroll in a distance college specializing in "Entrepreneurship and Commerce" today, and you'll see how your dream of a successful business becomes a reality through your perseverance and knowledge!