Competitor Research Is Essential For Every Business
Competitor research is a crucial part of all good risk management strategies. Competitor research is a process of acquiring competitive intelligence, specifically competitor analysis, from an active source. For example, it could be an investment fund run by an active investor that aims to get an exclusive or ‘captive’ access to a competitive niche market. Competitor research is also commonly used by smaller and medium sized businesses that are looking to gain a competitive edge.
Competitor research in strategic management and marketing is a study of the competitive strengths and weakness of potential and current competitors. This analysis offers both a defensive and offensive strategic context to identify potential threats and opportunities. The primary goal of competitor research is to facilitate business growth by identifying new opportunities as well as minimize current threats. Competitor research is therefore a key element of a comprehensive overall competitive intelligence program.
Competitor research is an important tool for both competitive and financial intelligence, depending on the source of information. Financial competitors must gather competitor analysis and information to determine the financial impact of their product, service or brand, and whether their competitors products or services are already undercutting them. Competitor research can be conducted through a variety of channels: internal programs, consumer surveys, market surveys, etc. Competitor analysis can provide a competitive edge in different industries by providing insight into existing and new product markets, emerging trends and the potential impact of innovations on the competitiveness.
Competitor research is also a valuable tool for businesses that are considering entering new markets. Understanding the competitive landscape and how to exploit existing market segments is key to achieving market success. Every business that wishes to achieve rapid growth and succeed in today’s marketplace should therefore take steps to develop an in-depth knowledge of their competitors as well as the market dynamics affecting those competitors. Competitive intelligence provides essential insights into market trends and competitor activities, enabling businesses to develop strategies to counter the competition.
Competitor research in the internet domain is primarily carried out through search engine submission, keyword density analysis and competitor backlink study. Search engines play a major role in providing online users with access to information. The volume of traffic that a website receives will have a strong impact on the rank of that website on search engine pages. Competitor research into search engine optimization helps businesses identify those keywords that have the potential to increase website traffic and improve rankings.
Keyword data is one of the most important tools available when conducting competitor research. Data for specific keywords can be obtained from search rankings, website analytics, competitor backlink data, search terms and average searches per month. Data for searches relative to a particular business is essential for determining whether the keywords chosen have a strong potential for traffic increase. For example, data for’motor parts’ in UK and’motor repair equipment’ in USA may have very different impact depending on the country where the website is located.
Keywords are selected based on the volume of traffic a particular site attracts. Competitor research tools enable business owners to choose relevant keywords and keyword phrases that are frequently used by online visitors to that site. This enables businesses to focus their efforts on these keywords to gain targeted traffic to their websites and ultimately increase sales.
Competitor research tools can help every business in gaining a competitive edge over their competitors and achieving maximum growth potential. Every business, irrespective of the industry, is continuously faced with new challenges and opportunities. Gathering information about the competition and then using it to strengthen their position is a sound investment. Businesses need to implement every aspect of effective competitor analysis tools to improve the quality and quantity of their traffic and subsequently growth prospects.