Your competition is often the best way to become aware of your industry's market trends. This gives you an opportunity to promote an emerging trend that will have buyers excited about your product or service.
A lot of businesses are focused on running their own race. It's typical that you are confident in the products and services you're offering. You get good feedback from your customers. You are working on being the best you can be for your customers without worrying too much about what your competitors are up to.
It's likely that you'll be informally capturing information on your competitors. You'll get information from customers and suppliers.
Competitor analysis is an evaluation of the strengths and weaknesses of current and potential competitors. An industry analysis provides information on possible competition sources (comprising all the presumed strategic actions and reactions and effects on the profitability of all competing organizations in the industry). Competitor analysis allows an organization to focus on its direct competition which becomes useful when faced with a few potential competitors.
Main objectives of Lucintel’s competitor analysis can be summarized as follows:
To study the market trend and pattern;
Chalk out strategy to increase market share;
Understanding a competitor's current strategy and its strengths and weaknesses;
To develop strategy for organizational growth when the organization is planning for diversification and expansion plan;
An understanding of competitor strategies may help in anticipating upcoming threats and opportunities