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Conducting competitive analysis is a key step in building a strategy that gives your company a competitive advantage. This includes identifying competitors’ strengths, weaknesses, strategies, positioning and value proposition.
A sustainable competitive advantage comes from unique factors that your competitors cannot easily replicate or match. These can include a specific location that gives you access to raw materials, a legal relationship with your suppliers or an intuitive new technology.
The first step of a competitive analysis is to identify the competitors your company faces. This includes direct and indirect competitors, depending on the industry. You can find your direct competitors by doing a simple Google search for products and services similar to those you offer. For example, if you are in the gaming systems business, your competitors include Sony’s new PlayStation 5 and Nintendo’s popular Switch console.
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