Your business’s marketing strategy should always include a comprehensive competition analysis. With the help of this analysis, you’ll be able to determine what aspects of your product or service set it apart from others on the market and, as a result, which qualities should take center stage in your marketing efforts.

Evaluate your rivals by classifying them into different strategic categories based on the degree to which they are in direct competition with one another for a portion of the customer’s spending. List the product or service offered by each competitor or strategic group, as well as its profitability, growth pattern, marketing objectives and assumptions, current and previous strategies, organizational and cost structure, strengths and weaknesses, and the size of the competitor’s business in terms of sales. Give your responses to questions like these:

Who are some of your rivals in the industry?
What kinds of goods and services do they offer for sale?
What percentage of the market does each rival hold?
What tactics have they used in the past?
What are the tactics they are using currently?
Which forms of media do they use in their marketing efforts for their various goods and services?
How many hours of advertising time each week do they buy in the various forms of media that are prevalent in this market?
Who are the competitors, and what are their advantages and disadvantages?
What kinds of dangers could be posed by your other competitors?
What possibilities and chances do they open up for you as a result of their actions?
Creating a competition grid is a fast and simple approach to compare your product or service to others of a similar kind already available on the market. Write the names of four or five items or services that are in direct competition with yours along the left-hand side of a sheet of paper. Think about the things that your clients would purchase if they didn’t buy your product or service so that you may produce ideas for this list.

Make a list of the primary features and distinguishing qualities of each product or service and place it across the top of the sheet of paper. When describing a product, be sure to include details like the target market, price, size, method of distribution, and the amount of customer support. When describing a service, it is helpful to include a list of potential customers, the locations where the service is offered, the cost, a website, a toll-free phone number, and any other pertinent aspects. If you take a quick look at the competition grid, you’ll be able to better understand where your product falls within the larger market.