How do businesses assess competitor strategies?

Businesses assess competitor strategies through market research, competitor analysis, and by studying industry trends and customer behaviour.

Market research is a key tool in understanding competitor strategies. This involves gathering, analysing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service. Businesses can use various methods such as surveys, interviews, focus groups, and observation to gather this information. This research can provide insights into the strategies competitors are using, such as their pricing, marketing, and product development strategies.

Competitor analysis is another important method. This involves identifying key competitors and researching their products, sales, and marketing strategies. Businesses can use tools such as SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) to compare their own business with their competitors. This can help them understand the strategies their competitors are using and how they can differentiate themselves.

Studying industry trends and customer behaviour can also provide valuable insights into competitor strategies. By keeping up-to-date with the latest trends in their industry, businesses can anticipate changes in customer needs and preferences, and predict how their competitors might respond. For example, if a business notices a trend towards more sustainable products in their industry, they might anticipate that their competitors will start offering more eco-friendly options.

In addition, businesses can also monitor their competitors' online presence to understand their strategies. This can include tracking their social media activity, website updates, and online marketing campaigns. By doing this, businesses can gain insights into their competitors' brand image, target audience, and promotional strategies.

Overall, assessing competitor strategies requires a combination of market research, competitor analysis, and staying informed about industry trends and customer behaviour. This can help businesses stay competitive and adapt their own strategies as needed.