Performing a competitive analysis is the best way to identify your competitors’ strengths and weaknesses. This article will take you through how this competitor analysis is performed and the questions you can ask to gain insight into their past failures. It also covers how you can exactly identify the strengths and weaknesses through a variety of best practice tactics.
A competitive analysis is essential if you want to learn from actionable tactics that are working in the current market. Below, you will learn how to boost your ROI and retain customers.
How a SWOT Analysis Uncovers Strengths and Weakness of Competitors?
Competitor SWOT analysis is key in making a competitor analysis framework. It can provide a starting point for brands to use when making decisions that impact their business. For instance, by doing a SWOT analysis, brands can recognise their current position in the market and aim to boost their ROI and SEO.
SWOT analysis is a decision-making tool. The aim is to look at your current business situation before making a brand strategy. SWOT stands for Strengths, Weakness, Opportunities and Threats.
Strengths and Weaknesses – Internal factors that are particular to a brand’s organisation or project.
- Strengths–List the major strengths of your competitors and think about how they create an advantage.
- Weaknesses–Where are competitors at a disadvantage?
Opportunities and Threats – External factors which depend on the environment of the organisation or project.
- Opportunities–Collect information to recognise details. This helps the brand to create an advantage.
- Threats–Understand concerns which could cause trouble for the business. Stay ahead by planning the best way to eliminate these.
How can you identify the strengths and weaknesses of competitors?
Competitor analysis is important for making business plans. By analysing competitors’ strengths and weaknesses, this is a great tool to help brands get ahead.
- Strengths – Start by comparing your brand’s products and services. Media attention, reviews, industry awards and recognition from bodies are useful starting points. See if the brand is receiving similar feedback from experts and customers.
- Weaknesses – Begin by comparing your brand’s products and services. Consider whether the brands are receiving negative feedback from customers and experts.
- Opportunities – These give brands knowledge on how to grow the business, including entering new markets and business developments.
- Threats – Consider the threats posed by the competition. Which areas do they stand out in and how can they get a larger portion of the market?
How using the competition’s failure can gain you profit
Competitor failure can cause a brand to achieve success. This is a key opportunity for brands to learn from their competitor’s mistakes and create their business plans to avoid doing the same. In addition, just because the competitor failed, this does not mean there is a winning solution for your brand.
Be proactive with your brand, therefore use a competitor’s failure as an opportunity to learn about what actions to take and avoid in order to help your brand grow stronger. Some questions that a brand can ask when leveraging on a competitor’s failure are:
- Is the competitor making poor financial decisions?
- Are the competitor facing a market threat?
- Did the competitor not provide sufficient customer service?
- Did the competitor receive negative media attention?
- Where are the competitor’s marketing efforts going?
- Does your competitor have a strong online presence, therefore how are their website and social media channels performing?
- Is the competitor profitable and securing strong sales?
- Does the competitor have a small or large team? How often do they hire?
- Can you use the strengths and weaknesses of your competitors to make better strategies?
How to improve your current content strategy
Understanding the strengths and weakness of competitors is key, therefore analysing content, SEO and product strategies can help make unique brand content.
Examining competitors’ content will give you clarity on what is working on your strategy so brands can look at areas in their strategy that may or may not be working by looking at their content.
What Can Brands Learn From Competitors?
There are a lot that brands can learn from their competitors. Therefore, this includes how they gain their audiences and what content those audiences engage with. Completing a SWOT analysis can help find this information. By looking at a competitor’s strength, for example, a brand can create topics that beat the competition.
A brand can also use the competitor’s weaknesses by making content that is new in the market. However, expand if possible by including content that will capture the audience’s attention. Don’t be afraid to be controversial!
Ways of building an improved SEO Strategy
Another important tactic to try is to understand the keywords that your brand’s competitor is using. Questions to ask are:
- What keywords are they ranking for?
- What keywords have they not ranked for?
Understanding keyword rankings can help brands improve search engine rankings. Thankfully, there are lots of tools available online that a brand can use to help with keyword research. Consider tools like SEMRush, Ahrefs Keywords Explorer, and Google Keyword Planner.
In conclusion, looking at strengths and weaknesses of competitors can help brands. It is a crucial strategy that can provide key data on what brands need to do and what they must avoid doing.