I. The purpose of competition research
Competing research aims at developing appropriate marketing strategies by understanding and assessing the competitive environment. Specifically, competition research can help enterprises to achieve the following objectives:
Identify and analyse the types, numbers, size, status, characteristics and behaviour of competitors
Assessing the strengths and weaknesses of competitors, including in products, prices, channels, promotion, services, branding, technology, quality, innovation, etc.
Predicting the objectives, motivations, strategies, tactics, capabilities and responses of competitors
Opportunities and threats arising from the identification of competitors'strengths and weaknesses, as well as possible actions and reactions by competitors
Develop their own competitive advantages and strategies based on the analysis of competitors to increase market share and profitability。
Ii. Competitors' methodology
Competing research methods include the following:
Desktop research: the collection and collation of basic information and market performance of competitors using open sources of information, such as official networks, reports, news, social media, forums, blogs, comments, evaluations, etc.
(a) field trips: first-hand information and perceptions through the observation and experience of competitors ' products, services, prices, promotions, environment, atmosphere, etc., by personally or commissioning a third party to the counterparty's place of business or place of sale
Client interviews: to obtain feedback and advice from customers on their perception, satisfaction, loyalty, preferences, needs, suggestions, etc., from existing or potential customers of competitors by telephone, mail, questionnaires, interviews, etc.
(b) expert advice: to obtain professional views and advice from specialists, academics, consultants, analysts, commentators, etc. In the industry, through hiring or cooperation, on the views, evaluations, forecasts, recommendations, etc. Of competitors
Competing simulation: to predict the likely actions and responses of competitors and to develop appropriate coping strategies by modelling their roles and positions, analysing their mindsets, decision-making processes, behaviour patterns, etc。
Steps in competing research
The steps taken by competitors in their research generally include the following stages:
(b) to define the objectives and scope of competition research and to identify the types, numbers, levels, importance, etc. Of competitors to be understood and analysed
(b) selecting methods and tools for the investigation of competitors and identifying appropriate research methods and channels, taking into account the characteristics of competitors and available sources of information
Collecting information and data on competitors, using methods and tools to obtain relevant information and data on competitors, bearing in mind the validity, accuracy, timeliness and completeness of information
(b) analyse information and data on competitors, using analytical methods and techniques such as swot analysis, porter's five-power analysis, value chain analysis, core competitiveness analysis, etc., to summarize, collate, compare, assess and interpret information and data on competitors
(b) generate competition reports and recommendations, based on the analysis of competitors, summarizing the strengths and weaknesses of competitors, identifying the opportunities and threats of competitors, making their forecasts and recommendations, and developing their own competitive advantages and strategies。
Case studies by competitors
In order to better illustrate the process and value of competition research, we use as an example the competition research provided by consulting firms for an electric power platform to provide insights from competition research to enhance their competitiveness and innovation。
Background and objectives
An electrician platform is an online retailer that focuses on high-quality lifestyle products, selling commodities such as clothing, shoe tracks, accessories, make-up, homemaking, etc., and targeting a group of young people seeking fashion and quality. The electrician platform faces multiple competitive pressures in the market from the same electrician platform, the integrated electrician platform, brand network, and the under-line store, in the hope of learning about the competitive environment, identifying its strengths and weaknesses and developing effective marketing strategies。
Methods and tools
The consulting firm selected the following methods and tools for competing research for the electrician platform:
Desktop research: using open sources of information, such as web searches, social media, industry reports, news reports, etc., to collect and collate basic information and market performance of the main competitors of the electric power platform, including data and information on the name, size, geography, type, location, target client, market share, growth rate, revenue, profits, brand image, reputation, activities, innovation, etc.
(a) field visits: first-hand information and perceptions of competitors ' products, services, prices, promotions, environment, atmosphere, etc., by personally or commissioning a third party to the place of business or distribution to the competition
Client interviews: to obtain feedback and advice from customers on their perception, satisfaction, loyalty, preferences, needs, suggestions, etc., from existing or potential customers of competitors by telephone, mail, questionnaires, interviews, etc.
(b) expert advice: to obtain professional views and advice from specialists, academics, consultants, analysts, commentators, etc. In the industry, through hiring or cooperation, on the views, evaluations, forecasts, recommendations, etc. Of competitors
Competing simulation: to predict the likely actions and responses of competitors and to develop appropriate coping strategies by modelling their roles and positions, analysing their mindsets, decision-making processes, behaviour patterns, etc。
3. Information and data
The consulting firm collected and collated information and data on competitors for the electrician platform in the following areas:
Market profile: the market size of the high-quality lifestyle products in which the electric power plant operates is about 100 billion yuan, with an annual growth rate of about 15 per cent, a highly competitive market and a large number of competitors, including the following:
Similar electrical platforms, such as little red books, web selectivity, shroom street and others, attract and retain users, mainly through social media, content marketing, branding, delivery of diversified goods and styles, focus on user experience and quality of service, and have a high level of customer loyalty and motivation
(a) integrated electric power company platforms, such as poaching, kyoto and multiplication, which occupy markets mainly through price advantages, brand visibility and channel coverage, provide goods and services of mass, focus on user size and turnover, and have greater market influence and competitiveness
(a) brander networks: for example, zara, h&m, eugar hangars, which attract users mainly through brand image, product design, quality assurance, provision of brand-owned goods and services, focus on brand value and user identity, high brand loyalty and premium
Underline stores: e. G., the garment store, zara, h&m, display and sale of goods, mainly in the form of physical stores, provide underline experiences and services, focus on user senses and emotions, and have a strong user stickiness and buy-back rate。
Competing analysis: consulting firms have analysed their competitors on the basis of data on their market share, growth rate, profitability, competitive advantage, competition strategy, etc., and have concluded that:
Similar electric platforms: competing players of this type are the most direct and powerful competitors of the electrician platform, whose market shares, growth rates and profitability are higher than the electrician platform, whose competitive advantage lies in their ability to effectively use social media, content marketing, reputational dissemination, etc., to create a unique user community and community atmosphere, to increase user participation and loyalty, and to create strong brand influence and user reputations whose competitive strategy is to continuously introduce new goods and styles that meet the diversity and individualized needs of users while providing quality user experience and services and increasing user satisfaction and trust
Integrated electric power platforms: competing players of this type are the largest and most extensive competitors of the electric power platform, whose market shares, growth rates and profitability are much higher than that of the electric power platform, whose competitive advantage lies in their ability to take advantage of price advantages, brand visibility and channel coverage, to occupy most markets and users, to provide large quantities of goods and services and to meet the basic and general needs of users, whose competitive strategy is to continuously scale and scope, increase transaction volumes and market ownership, while providing easy logistics and payment, and to reduce the purchase costs and risks of users
Brander network: competing players in this category are the most professional and high-quality competitors of the electric power platform, whose market share, growth rate and profitability are slightly higher than the electric power platform, and whose competitive advantage is that they are able to use brand image, product design, quality assurance, among others, to attract a group of users with high demand for fashion and quality, to provide their own branded goods and services, to meet the high-end and sophisticated needs of users, whose competitive strategy is to continuously increase brand value and user identity, enhance brand loyalty and premium capacity, and to provide professional counselling and after-sales services, increasing users ' trust and dependence
Underline stores: this category of competitors is the most traditional and physical rivals of the electrician platform, whose market share, growth rate and profitability are lower than that of the electrician platform, whose competitive advantage is that they are able to use the form of a physical store to provide underline experiences and services, satisfy the senses and feelings of users, increase the stickiness and repurchase rate of users, and their competitive strategy is to continuously optimize the layout and display of the shop, improve the presentation and marketing effects of the goods, while offering preferential activities and gifts, and increase the motivation and pleasure of users to purchase。
Conclusions and recommendations
On the basis of the analysis of its competitors, the consulting firm made the following conclusions and recommendations for the electrician platform:
The electrician platform has a certain level of competitiveness and potential in the market for high-quality lifestyle products, but it also faces competitive pressures and challenges from a wide range of sources, requiring constant upgrading of its strengths and innovative capabilities to emerge from the market
The core competitive advantage of the electrician platform lies in its focus on and specialization in high-quality lifestyle products, its pursuit and mastery of fashion and quality, its acquisition of a group of users with life tastes and demands, and its own brand identity and style
The main competitive disadvantage of the electrical platform lies in its lack of visibility, influence, size and scope in the market and its inactivity and effectiveness in social media, marketing of content, dissemination of reputations, etc., resulting in its low level of awareness, loyalty, dynamism, etc. Of its users and the difficulty of creating stable and sustained user groups and market shares
The main competitive opportunity for the electric power platform lies in the fact that its market for high-quality lifestyle products still has greater scope and potential for growth, and its target customer base has a higher consumer capacity and willingness to increase its competitiveness and attractiveness through continuous innovation and optimization of its products, services, prices, promotions, channels, etc., and to increase its market ownership and profitability
The main competitive threat of the electric power platform lies in the fact that it faces competitive pressures and challenges from all sides, and that it needs to constantly respond to the changes and actions of its competitors, while also preventing its advantages from being imitated or exceeded by its competitors, maintaining its differentiated and leading positions。
Based on the above conclusions and recommendations, the consulting firm proposed the following competitive advantages and strategies for the electrician platform:
(a) competitive advantages: the electrician platform should uphold and reinforce its core competitive advantage of focusing on and professionalizing high-quality lifestyle products, developing its own brand identity and style, providing goods and services that meet users ' needs and preferences, increasing user satisfaction and trust, and increasing user loyalty and reputation
Competing strategy: the electrician platform should pursue the following competitive strategies to enhance its market performance and competitive position:
(a) product strategy: the electric power company platform should continuously update and optimize its products, provide more commodities of the type and style, meet the needs of users for diversification and individualization, while also ensuring the quality and design of products, increasing their value added and premium capacity and highlighting product differentiation and advantages
Price strategy: the electrician platform should develop a reasonable pricing strategy based on its product location and target client, taking into account both the cost and profitability of the product as well as the consumer capacity and willingness of the user, while at the same time adapting prices flexibly to the supply and demand and competition of the market, and increasing their competitiveness and attractiveness
Promotion strategy: the electric power company platform should strengthen its marketing strategy by using various means and channels to increase its visibility and impact, attract and retain more users, increase user activity and turnover, and also provide some concessional activities and gifts, increase user motivation and pleasure and increase user buy-back and referral rates
Channel strategy: the utility platform should expand its own channel strategies, use online and offline approaches, increase its reach and efficiency, provide more opportunities and means of purchasing and experience, provide easy logistics and payment, reduce user purchasing costs and risks and improve user accessibility and safety
Service strategy: the electronics platform should optimize its service strategy, provide more counselling and after-sales services, increase user trust and dependency, provide more modes of interaction and communication, increase user participation and loyalty, collect and analyse user feedback and comments, continuously improve and improve its products, services, prices, promotions, channels, etc., and increase user satisfaction and trust。
