How well do you think you understand the market and your competitors? If they start working on a new product or service, will you know? What are their strategies for success? If you don’t have the answer to these questions, it may be time to conduct a competitor analysis.
If you conduct a competitor analysis, you will gain a competitive edge. This is a proactive business practice vital for success. At PREDIK Data-Driven, we help our clients grow and keep an eye on their competition. Read on for more details about our location intelligence solutions.
Why Should You Conduct a Competitor Analysis?
The main point of conducting a competitor analysis is to find a gap in the market and compare your competitors’ weaknesses and strengths with your own. It helps companies recognize how they can enhance their business strategy and take over the competitors in certain areas.
You can keep customer attention and gain a competitive advantage in the industry with a simple comparison to your competitors. However, before you carry out a competition analysis, you need to be able to determine your competitors.
Types of Competitors
There are three types of competitors you should be on the lookout for.
Direct Competitors
Your direct competitor will be someone aiming at the same target market or customer base as you. They will be offering the same products and services and have the same business strategies as you. They will have a similar market share & profit growth goal, and distribution model.
Indirect Competitors
This company will offer the same products or services as you, but their end goal will be different. They will have a different distribution model and might cater to a different customer base.
Substitute Competitors
This will be a company offering a similar product or service as you to your customers. However, they don’t directly solve the problem you’re targeting. For example, if you own a restaurant, your substitute competitor could be a nearby cafe.
Using Geolocation to Understand Your Competitor’s Business
Location intelligence tools and analytics software use GPS data gathered from different mobile devices. You can use this data gathered to analyze basic consumer profiles and foot traffic in a selected area. Many industries and brands are now using geolocation technology to conduct competitor analysis.
Most companies also use this tool for monitoring certain locations where they want to open a new branch or store. This is known as site selection analytics, where you try to understand a competitor’s dynamics in a certain location.
Location analytics can help you learn more about how a competitor’s business is performing in a particular area. What are the seasonal visits and patterns for their business? Can they defy the odds and maintain the same volumes throughout the year? Do the competitors attract the customer base you’re targeting?
If you’re ready to begin exploring the world of location intelligence and use location or customer analytics for competitor analysis, we have the right tools for you. At PREDIK Data-Driven, we can help you make smart, data-driven decisions.
We offer various location analytics solutions for our clients, including site selection analytics and market assessment tools. If you’re looking for a big data analytics company, check us out now. Contact us today to learn more or schedule a demo.
