Written by Coursera • Updated on Jul 29, 2022 Show
Learn what competitive products are, what they mean for your business, and how to conduct a competitive product analysis. What is a competitive product?Competitive products are goods and services that your target market might choose over yours. You can identify a competitive product by how similar its features and solutions are to your product. Competitive products can include:
Types of competitive products (with examples)There are three main types of competitive products to consider when investigating your competition:
What is a competitive product analysis?Identifying and analyzing competitive products are important steps when launching a business, developing new products, or enhancing existing products. For example, a new rideshare company would need to examine services through Uber and Lyft to understand how to design a more appealing experience. This kind of examination is called a competitive product analysis. According to a 2022 industry report by Crayon, a competitive intelligence (CI) software company, 59 percent of CI practitioners surveyed say their markets have become more competitive since 2020. [1] By taking these steps, you can:
Note this distinction: A competitive analysis is a holistic examination of competing brands, while a competitive product analysis focuses on products themselves. How to conduct a competitive product analysisFollow these four steps to conduct your competitive product analysis. 1. Identify and analyze your competitors.Even if you’ve already conducted a competitive analysis as part of your business plan or marketing strategy, take time to re-examine competitors, with a particular emphasis on competitive products. Gather as much publicly available information about competitors as you can from annual reports, websites, sales and product pages, email subscriptions, customer reviews, and social media. For each competitive product, answer the following questions:
2. Experience competitive products for yourself.Once you’ve gathered publicly available product details, your next step is to purchase each product or sign up for a free trial and experience it as a consumer would. Answer the following questions to compare your experience to the promise of the experience’s marketing.
3. Identify weaknesses in competitive products.Drawing from insights you gathered in steps one and two, compile a list of what the competitive product lacks. Completing this step can identify how to develop desirable products and outsell your competition.
4. Identify your differentiators.Use insights from steps one through three to identify how you will differentiate your product and create a competitive advantage. Completing this step will help attract consumers in your target market, convert them into paying customers, and gain their loyalty.
Get started with CourseraTaking an online course can be a great way to learn more about developing a business, offering competitive products and services, and succeeding in your industry. Related articles
Article sourcesCrayon. “2022 State of Competitive Intelligence, https://www.crayon.co/state-of-competitive-intelligence.” Accessed February 25, 2022. Written by Coursera • Updated on Jul 29, 2022 This content has been made available for informational purposes only. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals. What is an example of business risk?damage by fire, flood or other natural disasters. unexpected financial loss due to an economic downturn, or bankruptcy of other businesses that owe you money. loss of important suppliers or customers. decrease in market share because new competitors or products enter the market.
How a business handles money is called risk?Financial risk refers to a company's ability to manage its debt and financial leverage, while business risk refers to the company's ability to generate sufficient revenue to cover its operational expenses.
How can a business Minimise risk?Prevent and reduce business risk. set aside financial reserves to ease cashflow problems if they occur.. use physical control over assets, eg locks.. put in place data backup and IT support to deal with potential systems failures.. screen and train employees before you allow them access to critical systems.. What are some common risks that businesses face?The main four types of risk are:. strategic risk - eg a competitor coming on to the market.. compliance and regulatory risk - eg introduction of new rules or legislation.. financial risk - eg interest rate rise on your business loan or a non-paying customer.. operational risk - eg the breakdown or theft of key equipment.. |