What’s your competitor doing right that you’re not? Why are they having annual revenue of $20 million while you’re standing at a much lower revenue? Your product is very similar, if not better! Your team is more than capable. You have no clue why their breaking records. That’s absolutely normal. You’re in a phase where you need a competitors analysis.
If you’re playing a video game and find a cheat code that allows you to see where all other opponents are and what they’re doing, you should use this cheat code, especially if it’s ethical and legal.
A competitors analysis, or this cheat code of business, could convert your game from $0 to millions. Why? Because you can simply answer questions that would very much aid you in your business operations. Apple created a competitors analysis when they were going after Nokia. Without it, they would’ve been going blindly.
Steve Jobs did not have to publish a document called “Apple Competitors Analysis”, but if you had asked him any question about what Nokia was doing, then he would’ve answered. In a sense, his knowledge was the competitors’ analysis.
I’ve helped startups create the perfect competitors analysis. If you’re looking to create your own, you need to know the following six essential points while writing your competitors analysis:
1. The competitors analysis will consume time; if not, then it’s imperfect.
It will take time to create, but the effort will be worth it. It will help you understand your competitors better so that you can know what they’re doing right or wrong. You need to get a feel for their strengths and weaknesses. You need to be thorough. It should cover all your competitors, not just the ones you think are important.
This will take time, do not rush it whatsoever. Have you heard of any rushed product that succeeded?
2. It has to have assumptions in many cases.
You could say that it’s a reality check for your business. It allows you to see how well your current strategies are working and what changes need to be made so that you can compete more effectively. You should be able to answer the following questions:
- How do they compare to you in terms of these factors?
- How can you use this analysis to improve your own business?
In many cases, some questions will not be answered. For instance, you might not really be able to determine their market share. In these cases, you need to work on assumptions that are as close to reality as possible. Use parallel markets for reference as well.
3. Every piece of information you grasp about your competitors could be worth millions one day.
The best way to do this is to get your hands on as much data as possible. Look at the competitors’ websites and social media profiles, read their blog posts, and view their advertisements. Study how they market themselves and what kind of content they post on their sites. This will help you understand how to position yourself better against them and make the most out of any opportunities that arise from the competition analysis.
Even if you deem a piece of information unimportant, it could be a game changer. So put it in the reference of that document.
4. There is no such thing as too detailed when it comes to a competitors analysis.
You can always go deeper into your analysis and learn more about competitors’ operations. The more information you have, the better prepared you are to make strategic decisions that will lead to success.
5. You need to understand reliable sources and ones that you should ignore.
There are a lot of websites that claim to be trustworthy, but they aren’t. You need to determine whether or not the information you are reading is reliable and accurate. If it isn’t, you will waste your time and money on useless research that doesn’t help you make strategic decisions.
6. Finally, don’t scatter the information. Make the competitors analysis look good for your mind to remember.
You need to be able to clearly see the information you have gathered and make sense of it. It’s not enough to just throw all of your notes on a whiteboard or in a pile on your desk. You need to organize them in a way that makes sense so that when you look at them again later, your mind instantly remembers this information.
What should a competitors analysis consist of? Here’s my verdict.
1. Market Study, the ABC of a competitors analysis.
The market is the base of any study. If crypto is in decline or in a bear market, then you might make sense of your competitors’ actions. Hence, a competitors analysis should start with a market study. You need to know who your competitors are and how they are positioned in the market. This will give you an idea of what kind of products or services they offer and how they differentiate themselves from others.
2. SWOT Analysis
I consider it to be the mother of all analysis. Next, you should create a SWOT analysis of your competitors. This will help you identify the strengths, weaknesses, opportunities, and threats currently influencing their business. You can do this by looking at their financial statements, customer reviews, and industry publications. Once you know what each competitor is doing in the market, it’s time to gather some competitive intelligence about them.
Some information, like financial information, is available if your competitor is a public company. It could be harder to find if they are private.
Additionally, forget everything you’re been taught about the SWOT analysis. It could hit your brain that you just need to do it because you need to do it. That’s not the case. You’re not working on a deliverable for a school course. The SWOT analysis should actually benefit your business and impact your analysis.
3. Market Sizing
At this point, you should create a market sizing document. This will help you to determine how large the market is and whether any gaps in it could be filled by your own product or service. It’s also important to consider whether new players can enter an established market with success or if they must come up with their own unique offering.
4. Competitors’ Reach
Once you have a good idea of what the competition is doing, it’s time to consider how their reach compares with yours. You need to determine whether their product or service is better or worse than yours and whether they can offer something different from your own offering. When considering competitors’ reach, look into things like the number of customers they have and the geographical spread of those customers.
When considering your competitors’ investments, you need to look at their current and future spending plans. This will show how much money they have available to grow their business and whether they are likely to be able to outspend you in terms of marketing or product development. A fantastic resource for this section is Crunchbase.
6. Product Focus
While it’s important to know what your competitors’ products are like, it’s also important to look at how they’re positioning those products. For example, if a competitor is targeting a different demographic than you are, this could be an opportunity for you to step in and take advantage of that part of the market. Additionally, it’s also important to keep track of industry trends because they can affect both your business and your competitors. By monitoring these trends on an ongoing basis, you’ll be better prepared when they do impact your company;
7. Competitors’ Customer Feedback
It’s also a good idea to pay attention to customer feedback from your competitors. You can use this information to see what people like about the products and services they offer, as well as any areas where they could improve. In some cases, following their lead can be a good way to expand your own product line.
8. Technologies Your Competitors Use
Keep up with the latest in technology and make sure you know what your competitors are using. This will help you understand the types of systems they use, which can give you a better idea of how to improve your own operations.
9. Future Plans of Your Competitors
Try to find out what your competitors are planning for the future. You’ll be able to stay on top of any major changes that could affect your business and give you a chance to plan ahead and prepare for them as needed.
That’s all you need for your competitors analysis!
Follow the above, and send me an email if you want a free template to use. There’s a Notion template that you could use if you want, but I wouldn’t consider it a killer template. You will need to modify it. Here it is.
Oh, and one of the slides in a pitch deck that I love when it comes to competition is this one.
Also, it goes without saying that I would love to help you if you don’t have the proper time to do this or if you believe my expertise could come in handy. Here’s an Albusi service with the pricing and details. Let’s work together if you feel it fits your budget and timeframe. If not, I hope I have helped you out with the above guide.
A Detailed Competitors Analysis showcasing all details about your competitors. For instance, their market share, social media performance and data, products analysis, technologies, SWOT analysis, and a few competition graphs.
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A pitch deck writer’s most important aspect is understanding you and what you are trying to say. While that sounds quite obvious, it requires years of experience.
My objective is to open up your mind and sit inside there for a while to understand what’s going on. Then I’d be fully able to help you with your investment or business document.
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