Why does a competitive analysis even matter?

Isn’t it just another repetitive business task or is it going to help my business?

A good analogy is to imagine you are a professional chess player and you know everything about your opponent, how he thinks, his habits, his strengths, and weaknesses, and how he reacts to certain moves and scenarios. Information like this would only enhance your competitive angle and that is exactly what competitive analysis will do for you and your business.

Similarly, a competitive analysis can help you weigh up your competitors and present yourself in the best light possible in the marketplace. It will also give you a good understanding of why you are different and what makes you special.

If you are just starting in online retail and e-commerce an analysis of your competitors will help you achieve the following things:

• Use the information to make better marketing decisions

• Spot industry trends

• Benchmark yourself against your competitors and peers

• Become more clear about your value proposition

Next time we will finally get to how to how to conduct one.