Introduction

Every entrepreneur dreams of building a business that not only survives but thrives in a competitive market. However, to achieve long-term growth, it is crucial to understand what your competitors are doing right—and where they are failing. This is where competitive analysis comes in. For entrepreneurs in 2018, the ability to analyze competitors effectively is no longer a luxury; it’s a necessity.

Why Competitive Analysis Matters

Competitive analysis is the process of identifying and evaluating your competitors to understand their strengths, weaknesses, opportunities, and threats. Here’s why it’s important:

• Market Awareness: It helps you understand market trends and shifts before they affect your business.

• Identify Gaps: By studying competitors, you can discover untapped opportunities that your business can exploit.

• Strategic Positioning: It allows you to differentiate your business by offering something unique.

• Risk Management: Helps you avoid mistakes that competitors already made.

Steps to Conduct an Effective Competitive Analysis

1. Identify Your Competitors

Start by listing your direct competitors (businesses offering the same product/service) and indirect competitors (businesses offering alternatives). Tools like Google search, social media, and business directories can be very helpful here.

2. Analyze Their Online Presence

In 2018, a company’s online presence is as important as its physical presence. Check:

• Website design and content quality

• Search engine rankings

• Social media engagement

• Customer reviews

This gives you an idea of how customers perceive them and what’s working for them.

3. Evaluate Their Marketing Strategies

Pay attention to:

• What type of advertising campaigns they run

• Which keywords they rank for in search engines

• How they engage with customers through email, blogs, or video content

This information helps you craft a more effective marketing plan.

4. Study Their Strengths and Weaknesses

Use the SWOT framework (Strengths, Weaknesses, Opportunities, Threats) to assess your competitors. For example:

• Strengths: Strong brand reputation, loyal customers, wide distribution

• Weaknesses: Poor customer service, limited innovation, higher prices

Knowing this will allow you to position your business in areas where they lack.

5. Benchmark Your Business

Compare your own performance with your competitors in areas like pricing, product quality, customer experience, and innovation. This benchmarking will highlight areas where you need to improve.

Tools for Competitive Analysis

Entrepreneurs in 2018 have access to several powerful tools that make analysis easier:

• Google Analytics – to track traffic sources and behavior.

• SEMrush / Ahrefs – for keyword and SEO analysis.

• BuzzSumo – to check popular content topics.

• Social Media Insights – for competitor engagement metrics.

How Competitive Analysis Benefits Entrepreneurs

By regularly analyzing competitors, entrepreneurs can:

• Launch more targeted and effective marketing campaigns

• Improve customer satisfaction by addressing gaps competitors ignore

• Stay ahead of industry trends

• Increase profitability by avoiding wasted efforts

Conclusion

For entrepreneurs in 2018, competitive analysis is not just research—it’s a survival tool. Markets are evolving faster than ever, and businesses that fail to monitor their competitors risk being left behind. By understanding what others are doing and strategically positioning your brand, you can gain a competitive edge and achieve sustainable success.