Identifying your competitors and evaluating their strategies to determine their strengths and weaknesses relative to those of your own product or service A competitive analysis is a critical part of your company
internet marketing plan. With this evaluation, you can establish what makes your product or service unique–and therefore what attributes you play up in order to attract your target market.
Conducting a competitor analysis is a vital first step in developing any successful online marketing campaign. A well executed analysis is a good benchmarking tool that not only determines where your company stands next to the competition, but also aids decision makers in strategic goal setting and planning, ensuring that your project is on the right track.
Analytical tools to determine information about your competitor’s websites such as:
— Page rank
— Website traffic
— Link building strategy
— Sales and revenue streams
— Internet marketing campaigns
— Associations and charitable organizations they are part of
— Keywords currently being optimized, and
— Keywords proving to be the most effective at driving in sales
Evaluate your competitors by placing them in strategic groups according to how directly they compete for a share of the customer’s dollar. For each competitor or strategic group, list their product or service, its profitability, growth pattern, marketing objectives and assumptions, current and past strategies, organizational and cost structure, strengths and weaknesses, and size (in sales) of the competitor’s business. Answer questions such as:
Who are your competitors?
What products or services do they sell?
What is each competitor’s market share?
What are their past strategies?
What are their current strategies?
What type of media are used to market their products or services?
How many hours per week do they purchase to advertise through the media used in this market?
What are each competitor’s strengths and weaknesses?
What potential threats do your competitors pose?
What potential opportunities do they make available for you?
Competitive analysis is a method invented for analyzing online algorithms, in which the performance of an online algorithm (which must satisfy an unpredictable sequence of requests, completing each request without being able to see the future) is compared to the performance of an optimal offline algorithm that can view the sequence of requests in advance. An algorithm is competitive if its competitive ratio—the ratio between its performance and the offline algorithm’s performance—is bounded. Unlike traditional worst-case analysis, where the performance of an algorithm is measured only for “hard” inputs, competitive analysis requires that an algorithm perform well both on hard and easy inputs, where “hard” and “easy” are defined by the performance of the optimal offline algorithm.
For many algorithms, performance is dependent not only on the size of the inputs, but also on their values. One such example is the quicksort algorithm, which sorts an array of elements. Such data-dependent algorithms are analysed for average-case and worst-case data. Competitive analysis is a way of doing worst case analysis for on-line and randomized algorithms, which are typically data dependent.
This information is then leveraged to develop a superior online marketing strategy that provides our clients with an effective competitive advantage over the competition.