Competitive analysis is the process of determining the factors behind a company’s success through detailed analysis of competing companies.
A well-known competitive analysis is
the 3C analysis, which
analyzes three aspects: market/customers, competitors, and the company.
In this article, we will explain what competitive analysis is, the competitive analysis framework
“3C analysis”
, and the items and methods of 3C analysis.
What is competitive analysis?
One of the basics of
marketing strategy
is to analyze rival companies.
Marketing strategy means “providing products and services that meet customer needs in a way that is more attractive than competing companies and increasing profits.”
Analyzing what strategies your competitors are using to provide products and services and figuring out how you can offer products and services that are even more appealing than your competitors You could say it’s an analysis.
Similar to competitive analysis, “targeting” involves classifying the market from various angles and clarifying
the target customer
group for which the company should develop its products and services or conduct sales promotions. ” is also important for marketing strategy.
*For information on “Targeting,” please refer
to Targeting | How to set targets to differentiate yourself from your competitors
.
Competitive analysis framework “3C analysis”
“3C analysis”
is a well-known
framework
for competitive analysis. “3C” is
1.Customer (market/customer)
2. Competitor
3. Company
It is an acronym for
The purpose of 3C analysis is to compare the external factors of “market/customers” and “competition,” and the internal factors of “your company,” to determine your company’s “strengths” and “weaknesses,” and “what it takes for your company to succeed.” The goal is to figure out what to do.
*For methods and examples of how to utilize 3C analysis in marketing
Please refer to
In 3C analysis, it is important to first perform “market analysis”
When conducting a 3C analysis, it is important to first conduct a market analysis.
Unless it is clear what is defined as “market/customer needs,” neither competitive analysis nor in-house analysis can be performed.
When defining “rival companies,” it is easy to think of them as “companies that provide similar products or services.”
However, if you take into account the needs of the market and customers, you will realize that there are many ways to provide a certain solution, and that your competitors are not only companies that provide products and services similar to yours. It may happen.
3C analysis items and methods
In 3C analysis, we analyze several items: “market/customer”, “competitor”, and “company”.
By analyzing your company in contrast to the market, customers, and competition, you can derive the factors behind your company’s success.
Here, we will specifically explain the items and methods of 3C analysis.
■Market/customer analysis
Items that need to be taken into consideration when conducting market/customer analysis are market quantity, quality, and change.
Considering market volume means understanding the “market size” and “room for development.”
Market size is generally considered to be the sum of the sales of all competing brands in the market.
The scope for market development can be clarified by considering “what percentage of people with a need actually purchase a product?”
Without understanding the quality of the market, it is not possible to accurately understand market needs.
Is the market looking for practical benefits such as “quality, performance, and ease of use,” or is it looking for sensibilities such as “design and image,” or emotional things like “feeling”? By understanding the quality of the market, such as whether they are looking for “realization,” you can accurately grasp the market’s needs.
Understanding whether a market is in a growth, maturity, or decline phase can tell you whether there are new market opportunities.
Competitive analysis
When analyzing competitors, the analysis items are “identification of competing brands,” “composition of competing brands,” and “strategies and resources of competing brands.”
When identifying competing brands, identify “direct competitors,” which are brands that customers directly compare with your own, and “indirect competitors,” which are brands that offer the same value even if they are not the exact same products or services. It is also important to be specific.
Competing brands are often
- Leader brand: Brand that is driving the market
- Challenger brand: 2nd or 3rd place brand that competes with the leader brand through differentiation.
- Niche brand: A brand whose strength is specialization
- Follower brands: Brands that imitate leaders and followers
It has a composition of By understanding these, you can roughly infer your competitors’ strategies.
competitive brands’ strategies and resources,
- Target needs: What kind of needs are competing brands targeting?
- Value provided: What kind of value are competing brands offering?
- Marketing strategy: What marketing strategies are competitive brands using?
- Operation strategy: What kind of operation strategy are competing brands adopting?
- Resources: What kind of resources support the operations of competing brands?
will be analyzed in detail.
■In-house analysis
In company analysis, the items to be analyzed are “company’s position” and “strategy and resources.”
As with competitive analysis sites, you can figure out whether your company is positioned as a “leader,” “challenger,” “niche,” or “follower.” It is important to analyze the situation calmly without getting emotional.
Analyze your company’s “target needs,” “value provided,” “marketing strategy,” “operations strategy,” and “resources” in the same way as you did when conducting a competitive analysis.
summary
◆ Competitive analysis is the process of deducing the factors behind a company’s success by analyzing rival companies.
◆ “3C analysis” is a well-known framework for competitive analysis.
◆ 3C analysis involves detailed analysis of the three parties “market/customer”, “competitor”, and “company” from various items.