The competitor analysis grid provides a simple visualisation method of identifying and analysing our competitors within our given market at any moment in time.
It categorises competitors into 4 distinct categories represented as 4 squares within the grid.
Essentially it looks at the 2 key factors
The product or service they offer – Is it better or worse than the product or service you offer
The Sales / Marketing activities they are willing to engage in to compete with you i.e. are they highly reactive or are they fairly dormant and inward looking.
By analysing these 2 features we can quickly analyse our competitors into 4 categories.
Now that you understand the principles of the competitor analysis , spend some time researching your competitors to work out where they fit best within the 4 boxes.
What does this tell you about the market you are going into, is it likely to be fiercely competitive , or are your competitors poor and slow to respond.
The result of this analysis will help you decide what the likely response will be to any market activity you undergo i.e. what reaction there will be as you start to increase your sales and share of the market.
If you want to know more about how to analyse your competitors in more depth you can watch the following links;