How to Do Competitor Analysis? Step-by-Step Guide

Learn essential steps in How to Do Competitor Analysis with our guide. Elevate your strategy & stay ahead of the competition using practical insights & tools.

This is where competitor analysis comes into play.

Consider two brands, A and B, with similar products but different marketing strategies. A focuses on emotional branding and customer loyalty. In contrast, B targets younger consumers with social media campaigns.

They can adjust their marketing strategies through competitor analysis to reach their target audiences better. Consequently, increase their market share.

Do you want to level up and leave your competitors in the dust?

Well, it’s time to unleash your inner detective and conduct serious competitor analysis. And what better tool to use? No need to hire a private investigator or don a spy disguise. All you need is your computer and some computer skills.

So, grab your magnifying glass, and let’s look into how to do a competitor analysis.

Table of Contents:

1. What is Competitor Analysis?
2. Tools for Competitor Analysis
3. Competitor Analysis Templates
4. How to Do Competitor Analysis?
5. Benefits of Competitor Analysis
6. Wrap Up

What is Competitor Analysis?

Definition: Competitor analysis involves identifying and studying rivals to spot their strengths and weaknesses. It entails examining their offerings, sales techniques, pricing, and marketing strategies to find opportunities for improvement. This aids in understanding your place in the market and developing strategies to gain a competitive edge.

Tools for Competitor Analysis

There is no better way to do competitor analysis than by analyzing their data and metrics. While several tools are available, Excel and ChartExpo, stand out as the best options.

Excel, a spreadsheet program, allows you to organize and manipulate data easily. ChartExpo, an add-in for Excel, enables you to create insightful visualizations, such as Mosaic plots, which help in interpreting complex data relationships. Together, they provide a powerful combination for conducting competitor analysis.

With Excel’s data organization and ChartExpo’s visualization capabilities, competitors won’t stand a chance against your data-driven superhero status.

Competitor Analysis Templates

Utilizing competitive analysis templates can streamline this process, providing a structured framework to gather and analyze essential data. Here’s a breakdown of key elements you might find ineffective competitive analysis templates:

• Comparison Bar Chart

A Comparison Bar Chart is a powerful tool for comparing data sets visually. It uses bars to represent sections within the same category and compares the data to other categories or periods. This provides a clearer understanding of how data changes between categories.

Example

Assume you have your company’s and competitor’s quarterly website traffic data, as shown below.

Quarters	Companies	Traffic
Q1	Your Company	250986
Q1	Competitor 1	26106
Q1	Competitor 2	95563
Q2	Your Company	160466
Q2	Competitor 1	78874
Q2	Competitor 2	71263
Q3	Your Company	223179
Q3	Competitor 1	134726
Q3	Competitor 2	121635
Q4	Your Company	201495
Q4	Competitor 1	32707
Q4	Competitor 2	208904

You can map this data on a Comparison Bar Chart as shown below.

• Stacked Bar Chart

A Stacked Bar Chart displays numeric values across two categorical variables. It divides each bar into sub-bars corresponding to a level of the second categorical variable. It explores the relative decomposition of each primary bar based on the levels of the variable.

Example

The data below displays the companies as the primary categorical variable and the products as the secondary categorical variable.

Countries	Companies	Garments	Electronics	Toys
USA	Your Company	56	37	7
USA	Competitor’s Company	25	11	64
Canada	Your Company	52	38	10
Canada	Competitor’s Company	52	34	14
UK	Your Company	53	22	25
UK	Competitor’s Company	32	35	33
UAE	Your Company	27	24	49
UAE	Competitor’s Company	44	26	31

The chart below depicts the market share of each product by company. This reveals which firm dominates the market and which items drive sales.

• Radar Chart

A Radar Chart is also known as a Spider Chart or Polar Chart. It helps compare multiple quantitative variables and display performance. Each variable has an axis arranged radially with equal distances. All variables connect to form a polygon. The shape of the chart can indicate which variables perform well or poorly.

Example

Let’s say you have website traffic data distributed across the different months in a year, as shown below.

Months	Your Website	Competitors Website
Jan	614000	646000
Feb	579000	740000
Mar	753000	954000
Apr	956000	616000
May	545000	880000
Jun	697000	531000
Jul	677000	462000
Aug	742000	962000
Sep	512000	688000
Oct	750000	553000
Nov	659000	518000
Dec	849000	457000

You can see how beautifully this data has been mapped on a Radar Chart below.

How to Do Competitor Analysis?

As discussed earlier, Excel is the best tool for performing competitor analysis. However, Excel poses some challenges with data analysis. This necessitates the use of a third-party tool, ChartExpo.

Why ChartExpo?

Let’s learn how to Install ChartExpo in Excel.

1. Open your Excel application.
2. Open the worksheet and click the “Insert” menu.
3. You’ll see “My Apps”.
4. In the office Add-ins window, click “Store” and search for ChartExpo on my Apps Store.
5. Click the “Add” button to install ChartExpo in your Excel.

ChartExpo charts and graphs are available both in Google Sheets and Microsoft Excel. Please use the following CTA’s to install the tool of your choice and create beautiful visualizations in a few clicks in your favorite tool.

Example #1

Let’s assume you have your company’s and competitor’s quarterly website traffic data, as shown in the above Comparison Bar Chart template.

• To get started with ChartExpo, install ChartExpo in Excel.
• Now Click on My Apps from the INSERT menu.

• Choose ChartExpo from My Apps, then click Insert.

• Once ChartExpo is loaded. Click on “Comparison Bar Chart” from the list of charts.

• Click the “Create Chart From Selection” button after selecting the data from the sheet, as shown.

• The Comparison Bar Chart will look like as below.

• To add a title to the chart, click the Edit Chart button as shown above.
• Click the pencil icon next to the Chart Header to open the properties dialog.
• In the Text section of this dialog, add a heading in Line 1 and enable the Show Then click the Apply button.

• To make the links in the chart less transparent, select the pencil icon near the top bar. Expand the “Link” property and adjust the opacity from “0.4” to “0.6”.
• Once you are satisfied with the changes, save them by clicking the “Apply All” button.
• To ensure the changes are permanent, click the “Save Changes” button.

• The final chart will look as below.

Insights

• During the first three quarters, your company had higher traffic than your competitors. However, there was a significant drop in traffic in the fourth quarter, a cause for concern.
• Competitor 2 had the second-highest traffic in the first quarter. However, they experienced a dip in the subsequent two quarters, with the least traffic during that time. In the fourth quarter, their traffic increased, and they had the highest traffic during that period.

Example #2

Let’s create a Radar Chart visualization of your data and glean valuable insights.

• To get started with ChartExpo, install ChartExpo in Excel.
• Now Click on My Apps from the INSERT menu.
• Choose ChartExpo from My Apps, then click Insert.
• Upon loading, select “Radar Chart” from the list of charts.
• Select the data from the sheet, then click the “Create Chart From Selection” button.
• The Radar Chart will appear as below.

• Click the Edit Chart button to modify your chart.
• Click the pencil icon next to the Chart Header to change the title.
• It will open the properties dialog. Add a heading in Line 1 of the Text section and enable the Show. Give the appropriate title of your chart and click the Apply button.

• Click the Save Changes button to persist the changes.
• To enlarge the size of the dots in the Radar Chart, click the “Settings” button. Expand the “Curve Point” property and toggle the “Show” option.

• Click the “Apply” button to keep the modifications.
• The final chart will appear below.

Insights

• In January, your and your competitor’s websites had almost the same amount of traffic.
• In five months, namely February, March, May, August, and September, your competitor’s website outperformed yours. This could be attributed to their larger user base.
• Your website performed better than your competitor’s in six months of the year – April, June, July, October, November, and December. Thanks to your consistently higher levels of traffic.

Benefits of Competitor Analysis

Competitor analysis is a crucial component of strategic business planning, providing valuable insights that can influence decision-making and contribute to the overall success of a company. Understanding what a data analyst does in this context can enhance your approach. Here are some key benefits of conducting competitor analysis:

• Identify Your Unique Selling Proposition (USP)

Analyzing your competitors helps you determine how to differentiate your product or service from others. Through this process, you can identify your USP. Understanding your USP is crucial as it can help you craft a compelling value proposition. Consequently, develop a clear brand identity that expresses your differentiation strategy.

• Improve Customer Satisfaction

You can identify areas where your business can improve to meet or exceed customer expectations. This can help you provide better value to your customers and improve overall customer satisfaction. This contributes to increased customer loyalty and retention.

• Identify New Market Opportunities

You can gain insights into your competitor’s target markets, customer demographics, and product offerings. As a result, identify gaps or unmet customer needs that may present new opportunities for your business. This can help you expand your customer base and increase your market share.

• Stay Ahead of Your Competition

Regular and systematic competitor analysis will help you understand their strengths and weaknesses. This lets you stay up-to-date and refine your business strategies to maintain a competitive edge. As a result, ensure the long-term success of your business.

• Improve Your Marketing Campaigns

You can examine your competitors’ marketing messages, social media presence, and content marketing tactics. You will gain knowledge of market trends thanks to this. As a result, identify where you can improve your campaigns.

• Informing strategic decision-making

Competitor analysis provides valuable insights that can inform strategic decision-making processes. This includes identifying new target markets, adjusting pricing strategies, developing unique value propositions, or enhancing product offerings.

• Mitigating risks and threats

Competitor analysis helps you identify potential threats and risks in the market. By understanding the actions and strategies of competitors, you can proactively respond to market changes and competitive challenges.

FAQs

What is competitor analysis, and why is it important?

Competitor analysis is a strategic method for determining a business’s position in the marketplace relative to its rivals. It aids businesses in identifying their strengths and areas for improvement.

What is the process of competitor analysis?

1. Compile a list of your direct and indirect rivals.
2. Examine their offerings, pricing, and market share to find areas for development and pick up tips from profitable rivals.
3. You can also perform a SWOT analysis to find market gaps.

What is the difference between competitor analysis and market analysis?

The goal of a market analysis is to locate opportunities and potential clients. Comparatively, competitor analysis concentrates on understanding competitors to develop a competitive advantage.

How to do competitor analysis?

To do competitor analysis, use ChartExpo, a third-party tool that supercharges data visualization. ChartExpo creates insightful data visualizations that facilitate effective competitor analysis.

What should a competitive analysis include?

A competitive analysis should include an evaluation of the following competitor aspects;

• Strengths and weaknesses.
• Product or service offerings.
• Pricing strategies.
• Distribution channels.
• Marketing tactics.
• Market share.
• Overall performance.

It should also identify opportunities and threats in the market that can inform strategic decision-making.

What are the benefits of performing a competitive analysis?

Performing a competitive analysis offers several benefits;

• Identifying market opportunities.
• Understanding customer preferences.
• Assessing strengths and weaknesses.
• Adapting marketing strategies.
• Mitigating risks and threats.
• Informing strategic decision-making.

Wrap Up

Competitors do exist depending on the type of business you run and the industry you operate in. To remain successful, you must study them and understand how they operate. Doing this will help you defend your position, compete better, and improve your business’ performance.

Understanding the competition and finding new opportunities are made possible with the help of competitor analysis. It assists you in staying one step ahead of the competition and guarantees your business’s long-term success.

It entails identifying and researching competitors to determine their strengths and weaknesses.

This may seem daunting, yet you can accomplish it. With basic knowledge and the right tools, you can do it independently.

How can you maximize your competitor analysis, and what tools should you use?

The data analysis go-to tool is a spreadsheet. However, a spreadsheet can only show you data in rows and columns.

How to do competitor analysis? This is where ChartExpo comes in handy.

ChartExpo makes data more engaging with visualizations that give you a bird’s eye view of the whole picture. It converts data in your spreadsheets into interactive visualizations and dashboards.

Try ChartExpo today.