A competitive landscape analysis is a structured way of identifying and researching your competitors — for instance, your rival’s product offering, social media content, and marketing strategies to improve your own business.
A competitive landscape analysis should cover topics: who your company’s competitors are, the products and services your competitors offer, your competitors’ strengths and weaknesses, the strategies your competitors are using to achieve their objectives, and the overall market outlook. The analysis prepared this way will allow you to get to know your competitors well and to develop a more accurate strategy for your company.
How to do competitive landscape analysis?
Organize your work
The first step in creating a competitive landscape analysis is to think about and decide how you will record the data you collect. The information obtained should be recorded in a clear and easy-to-understand way, then it will be easier to draw conclusions. A frequently used tool is the table. You can also present information using drawings, charts. Visualizing the data helps a lot in understanding it.
Secondly, answer the question of who your competitors are — research the players in the market. Find out if they are small or large companies and divide them into groups. Think about which entities will be your direct competitors and which will be your distant competitors or maybe potential competitors.
Analyse the content
Analyse the content your competitors are posting. How they advertise, what they use to attract customers, whether they run webinars or podcasts. Pay attention to the company’s whole visual environment.
Social media monitoring
Next, check what social media your competitors are active on, how often they post there, what kind of audience they have, and if they are popular on different websites. Thanks to this, you can analyse how your competitors operate and know what actions you should introduce in your company not to be worse than them.
Use SWOT and PEST analysis when doing the competitive landscape analysis
SWOT analysis (or SWOT matrix) is a strategic planning technique used to help a person or organization identify strengths, weaknesses, opportunities, and threats related to business competition or project planning. Remember that strengths and weaknesses are internal factors, opportunities, and threats — external.
PEST (political, economic, social, and technological) is a management method whereby an organization can assess major external factors that influence its operation in order to become more competitive in the market.
Using the two analyses mentioned above, you will be able to assess your market position concerning competitors broadly.
How to draw the conclusions?
To organize collected data in a helpful way, create a competitive matrix and record the information you have gathered. Identify, for example, the most relevant features that are important to your customers, then compare yourself and your competitors. Thanks to this you will receive information on how you compare to your competitors, what you should improve in order to improve your position on the market.
Take action of competitive landscape analysis
To sum up, in a few simple steps you can gain comprehensive knowledge about the company’s environment. A competitive landscape analysis is a tool that helps to comprehend the mission, vision, core values, strengths, and weaknesses of your competitors.
Now that you know the theory, it’s time to put it into practice.