We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is Competitor Analysis?

By Alexis W.
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Competitor analysis is a business term used to describe researching primary and secondary competitors. Such analysis occurs when a company conducts formal or informal studies regarding what its competitors are doing. Analyzing competitors can be useful to find a benchmark for quality, to assess threats, and to determine the potential for growth.

Every company has competitors. These may be primary and secondary competitors. For example, a movie theater's primary competitors are other movie theaters, while its secondary competitors may be home movie rental chains.

Analyzing the behavior of competitors can be a vital tool for a business. Competitor analysis normally involves looking at the strengths and weaknesses of the competition. The analysis may be a wide scale analysis of the whole company or may be a more focused analysis, such as a competitive analysis only of marketing strategies.

Observing a competitor also allows a business to see what the competitor is doing well. The company can then determine how to incorporate some of those successful strategies into its own business model. Ideally, the company can also learn how to make improvements on the strategies it incorporates.

Competitor analysis also allows a company to see his competitors' weak spots. This can provide the company with an opportunity to use those weak spots to recruit new customers or to emphasize its superiority. For example, if a company conducts a competitor analysis and determines that customer service is lacking within the industry, it can tout itself as the best option for customer service, thus attracting customers who are tired of the poor quality service they are getting.

Threats can also be easily and quickly identified through competitor analysis. For example, a company may be able to see that one of its competitors is gaining market share. This can be an important fact, since the company can then take steps to ensure it is not forced out of business by the growth of the competitor.

Finally, competitor analysis can also help a company determine the potential for growth. By observing the entire customer base, including those who currently work with competing businesses, a company can get a broader understanding of the market. This can allow the company to determine how much it can expand within that market, and how best to do so, given the current behavior and activity of its competitors.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.