How to Analyse your Competitors? Steps in Competitor Analysis

How to Analyse your Competitors? Steps in Competitor Analysis

An approach that is often used in the process of analyzing competitors exist of the following four steps:
1. Define the structure and the characteristics of the industry / sector (5 Forces)
2. Identify and analyse strategic groups, having a similar (or the same) strategy in the same market.
3. Identify, analyse and evaluate the most important competitors. A direct competitor is a company which sells products in the same market.
4. Anticipate on actions of your direct competitors. Strategic thinking and managing requires a business to be proactive dealing with the actions of competitors.