All You Need to Know About Competitive MatrixMaaz Habib
Do you own a business and looking for growth opportunities?
You’re at the right place then. Let us introduce you to the Competitive Matrix!
A competitive matrix is an analysis tool that helps businesses to look for growth opportunities which will help them to differentiate their brand from the competitors. This tool allows businesses to understand and learn more about their market segment so that they can create improvised products for their customers and stronger marketing plans. This article will help you understand the concept of the competitive matrix as an industrial analysis tool and its usefulness with respect to growth opportunities.
What is a Competitive Matrix?
A competitive matrix tool is an industrial analysis tool that helps the businesses to determine their competitive advantage in the industry. This tool will enable the business to look for new growth opportunities, marketing strategies, and ways to innovate products and services. This tool is widely used in industries where the businesses can compare themselves easily to their competitors in the market and develop strategies which will differentiate them from others in this growing competition.
You can either make a list or a graph in order to establish the competitive matrix which will help you to identify your strengths and weaknesses in comparison to the characteristics of various brands present in your market segment.
Competitive matrix chart can be important for growing and competing businesses in a number of ways;
- Firstly, it is an input which allows companies to set their business strategy.
- Secondly, it will help businesses to understand their position in the market and develop strategies accordingly.
- Thirdly, it is one of the most obvious tools used to develop business plans and helps businesses identify the gaps in the market segments
The following is the example of a simple yet practical competitive matrix chart which is easily doable for businesses.
|Feature 1||Feature 2||Feature 3||Feature 4|
The table above will definitely reflect the strengths and weaknesses of each competitor in comparison to your business. Competitive matrix will help the businesses to identify the unique characteristics of the brand and will help the business strategists and analysts to leverage them. Once you have used the competitive matrix tool to identify your position in the market segment, your strengths and weaknesses you can easily add the products, services and tools that are missing in your company. Moreover, you can develop marketing plans in order to target your audience and consider opportunities for niche marketing.
How to fetch information for your competitive matrix?
Competitive matrix is only good as a tool as long as you know what kind of information is to be included in it. In this modern age of technology, it is not at all difficult to find information about your competitors. You can simply use the web to find information about your competitors. Perform a competitive website analysis of your competitors in depth which will help you look for particular details about them. Some of the tips you can follow are;
- Benchmark your company website against the website of your competitors
- With the help of competitive web analysis, look for and identify new competitors
- Look for content that interests your audience the most
One thing that the businesses have to be sure about in this era of growing competition is that they need to develop distinctive products that are unique and yet satisfy the needs of the customers in the market segment. It is not possible for a business to become profitable and gain a competitive edge in the industry by developing products that are of no use to customers. As long as your company is providing measurable benefits to the customers in the market, it is on the track of profitable growth and future.
Steps to Create a Competitive Analysis Report
Follow these basic steps to create a competitive analysis report that will help you to not only outstand your competitors but will also help you focus on your goals and objectives. Depending on the type of businesses, the level of details included in reports may vary.
- Competitor Overview
- Extensive Market Research
- Compare features against your competitors in a form of a table (as shown above)
- Conduct your company’s SWOT analysis to identify strengths and weaknesses
- Fit yourself in the competitive landscape based on the analysis
As stated earlier, the competitor overview can be easily done using the web. For making a competitive analysis report, you need to conduct extensive marketing research with the help of either primary research or secondary. This will help you gather information about customers, understand them and identify the ongoing trends in the industry.
A competitive matrix is an industrial tool which is significantly useful for the companies operating in a competitive environment. It will always help your brand to grow while learning more about your industry and identify opportunities available in the market segment.