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.