Updated: Feb 21
Your company probably offers the same products/services as your competitor. However, they seem to be a step ahead of you. So how + do they compete against you? How do you get ahead of them?
A competitor analysis can help you formulate a game plan to gain a competitive advantage against your competitors. In this article, you'll learn about competitor analysis and its importance in detail.
What is Competitor Analysis?
Competitor analysis is the process of identifying competitors and their marketing strategies. You can use this information to determine your strengths and weaknesses compared to theirs. On the contrary, an external analysis determines indirect and direct threats and opportunities in the external marketplace.
When it comes to competitor analysis, it pays to be proactive rather than reactive. Here are some questions that can help you conclude:
How good are your competitors' websites and social media platforms?
How successful is the content on your competitor's social media platforms?
What do customers say about your competitors?
What is the general opinion about your competitor?
What are the primary keywords on your competitors' PPC ads?
Where do your competitors get their inbound links from?
What is your competitors' marketing budget?
Who is your content-marketing competitor?
Is your competitor embracing the technology shift better than you?
You can learn more about how to identify competitors here on our blog.
Competitive Advantage 'The 3 Circle Model'
The three-circle model by Urbany and Davis offers a simple yet informative insight into competitor analysis. This model is depicted as three overlapping circles representing your customers' needs, the company's offerings, and competitors' offerings.
The customer circle represents the customers' needs and the value the customer seeks. The second circle, the company circle, depicts the value your company offers the customers. The overlapping area in the middle is what the company has to deliver to satisfy the customer.
The third circle, called the competitor circle, opens an entirely different way of thinking. It represents the value your customer sees in the competitor. And the overlapping area between the three circles (excluding the third circle) is called the "Competitor Advantage." And this value is why customers go for your company, not the competitor.
Why use SOSTAC®?
Simply put, SOSTAC® is a simple, straightforward yet logical digital marketing plan. Above all, it is easy to remember, explain to others and also implement in any industry.
SOSTAC® is often used as a template to ensure consistency when different teams come together to present plans. The best part is that SOSTAC® simplifies the process for everyone involved.
SOSTAC® is also flexible and can be adapted any way you want. With SOSTAC®, you can either use all the components or just a few key components.