In ecommerce, it’s common to have many other sellers offering the same products or services as yours. So, how can your business stand out? Doing a competitor analysis can help you win over their customers.
Whether you’re an SME striving to get your brand out there or an established enterprise aiming for longevity, understanding and analyzing your competitors is crucial to success.
Let’s look into the significance of competitor analysis, its key components and how it can be a game-changer for your business.
But first, what is competitor analysis?
Competitor analysis, also known as competitive analysis, is the process of scouting, evaluating and reading into your competitors’ strategies as a business.
It involves a systematic examination of your rivaling businesses’ strengths, weaknesses and market positioning to identify opportunities and threats, so you can make the necessary adjustments for your business to stay competitive.
Why is competitive analysis important in business?
There’s a number of key reasons for a business to include an analysis of competitors in business planning, especially in the Filipino ecommerce sector.
strength, weakness and market share.
At its core, a competitor analysis allows businesses to:
Navigate the competitive landscape
Competitive analysis in marketing is significant when a business shares the same products or services as other brands targeting the same markets. In the Philippines, where local SMEs contend with global ecommerce giants, understanding the competitive landscape is necessary for survival.
Competitor analysis keeps you informed of both local and international players’ strategies, providing insights on how to survive, adapt and thrive in this diverse market.
Tailor strategies for local audiences
The patronage of local customers can impact ecommerce success – especially when buying local means shipping and delivery is faster and cheaper.
Through competitive analysis, you can better discover and recognize the nuances of consumer behavior, buyer preferences and cultural influences in the Philippines, enabling you to craft strategies that resonate with the local audience.
More about the Filipino Online Buying Behavior here.
to choose you over your competitors.
Optimize pricing strategies
In a price-sensitive market like the Philippines, abrupt or extreme pricing changes can get a loyal buyer to jump ship and switch to another brand.
Understand how other similar businesses price their products and services so you can come up with a competitive yet profitable pricing model.
Here are some Effective Pricing Tactics for Your Online Business.
Adapt to evolving consumer trends
The Philippines’ ecommerce landscape is dynamic, with consumer trends changing as fast as viral TikTok trends. Through continuous competitor analysis, you can stay ahead by adapting to emerging shifts in consumer preferences and buying habits, be it in payment methods, delivery options or user experience.
Seize opportunities for market expansion
Identifying opportunities for market expansion can be realized by identifying and filling in the gaps between your business and the competition. This helps you locate your place in the competitive landscape – is your brand seen as the industry leader or a newcomer?
Competitor analysis allows you to reach undiscovered markets, enabling you to plan ahead and capture new customer segments.
How to do competitive analysis in 7 steps
Now that the importance of competitor marketing analysis is clear, here are seven actionable steps to conduct your own competitor analysis:
1. Find out who your competitors are
Start by identifying your direct and indirect competitors. Direct competitors are those offering similar products or services, while indirect competitors may provide alternatives that fulfill the same customer needs.
Then narrow down your list to three to five competitors to monitor. Leverage market research, industry reports and customer feedback to compile a comprehensive list of both direct and indirect competitors.
2. Check their websites and social channels
A competitor’s online presence is a treasure trove of information. Analyze their websites to understand their product offerings, design and user experience. Additionally, dive into their social media channels to gauge their engagement strategies and customer interactions.
By going through your competitors’ online channels, you get to discover what their brand or business is all about – and when comparing it to your own, you get to realize what your business is doing right and what it is potentially missing.
3. Analyze their 4Ps
Break down your competitors’ strategies using the classic marketing mix: product, pricing, place and promotion.
- Product: How different is their offering from yours? Should you start innovating?
- Pricing: Are your product prices in the same range? How should you adjust your pricing strategy?
- Place: What platforms are they using, and are they servicing the same areas, or are they outside your location? Are your competitors an online-only store or do they have retail locations?
- Promotion: Are they using digital marketing strategies like SEO, PPC or social media ads? Or are they employing traditional advertising tactics as well? Do they have the budget for an influencer or celebrity endorser?
The 4Ps offer a straightforward approach in understanding your competitors, whether direct or indirect. Look at what they sell, how much it costs, where it’s available and how they promote it.
4. Do a SWOT Analysis
Once you have narrowed down your competitor list using the 4Ps, conduct a SWOT analysis for each competitor. The basic steps in a SWOT analysis include:
- Determining your business objective
- Compiling data, information and other resources
- Listing down internal factors (strengths and weaknesses) and external factors (opportunities and threats)
- Distilling the ideas into key insights
- Strategizing based on the findings
Including a SWOT analysis in analyzing the competition helps you build strategies based on informed decision-making, enabling your business to position itself effectively in a fast-paced, volatile market.
5. Determine your competitor’s market positioning
Understand where your competitors position themselves in the market. For example: are they focused on delivering premium products, or are they catering to budget-conscious consumers? This knowledge is essential for refining your own market positioning and targeting the right audience.
By grasping your competitor’s positioning, you strategically position your ecommerce store to attract a specific audience and avoid possible friction.
6. Check customer experience via reviews, comments, etc.
Nearly all online shoppers check customer reviews before they make a purchase — real customer images, product reviews, social media posts and other customer-generated content.
Analyze reviews on various platforms, customer comments on social media, and any other available feedback channels. This allows your business to identify common pain points and areas where your competitors excel or lack.
7. What technology, apps or tools are they using
Look into the technology your competitors are using — tools and applications powering their operations, customer relations or analytics — and see if these tools can be integrated into your business as well.
Embracing similar technologies can elevate your business efficiency, keeping you on par or even ahead in the competitive landscape.
Here’s our list of the 10 Essential Business Tools for Ecommerce.
Stay ahead of the competition with Ninja Van
Competitor analysis is not a one-time task, but an ongoing process that can fuel innovation, optimize strategies, and lead to sustained business success.
By understanding who your competitors are, dissecting their strategies and leveraging insights gained, you can position your business for growth and profitability.
Ninja Van is here to help optimize your small business operations, streamline your fulfillment and delivery process, and elevate the overall customer experience. We’re not just your delivery partner, we’ll create customized and tech-driven logistics solutions for your current and future business needs.
We’ll go the extra mile for you so you can stay ahead of the competition.
Discover how Ninja Van can optimize your business for growth!
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