What is competitor analysis?

The world of e-commerce is intense. Alongside the wealth of opportunities, the potential that current markets and resources offer companies of all kinds, competition is also fierce, and the complexity makes decision-making difficult. However, this does not stop many small and large companies from venturing online, toward success in countless cases.

One of the concepts that all modern businesses should know is competitor analysis. In this article, we will explore the essential information you need to know in order to use this tool in your e-commerce business.

Competitor analysis, also called competition or competitive analysis, is a company’s examination, as part of its strategy, of the other brands operating in its sector and occupying a similar position in the market, in order to learn their characteristics and approaches.

Just as in-depth knowledge of customers, whose importance is well known in the business world, knowing competitors well is one of the essential elements for decision-making and planning.

The analysis may include products, prices, results, strengths and weaknesses, or any other desired element. It may focus on just one or two competitors, or it may be exhaustive. All details will depend on each business’s goals and needs.

The old saying that no one is an island could equally well apply to companies. A business does not operate in a bubble, but in a context: in terms of time and place, the market, its customers and, of course, the competition.

It may seem tempting to think only about our responsibilities in isolation, without taking competition into account. However, this is an attitude that can seriously harm your company. Actively thinking about your competitors is not only essential at a strategic level, it can also bring great practical benefits to your business’s operations. Below, we will list the advantages that a methodical competitor analysis process can bring.

An important moment to carry out a detailed competitor analysis is the initial phase of a business. Many people act on preconceived ideas about the competition, which may be incorrect or outdated.

Meanwhile, frequent updates and repetitions are important. Today’s markets change quickly, and keeping up with up-to-date information and new trends requires discipline. Competitor analysis should be seen as a regular best practice, like keeping the warehouse or records well organized.

These are some of the most important and common functions and advantages of competitor analysis.

• Gain a better perspective on your sector;
• Understand better the standards and norms practiced in your industry, which is necessary in order to meet them or, of course, surpass them;
• Get to know your own company better, by comparison with others, and what your competitive advantages are;
• Differentiate yourself from competitors;
• Keep up with market trends and changes affecting the sector;
• Discover market niches to explore;
• Measure your growth and results in context;
• Discover areas for improvement;
• Learn lessons from other companies – and negative lessons, we should remember, are no less important.

The aspects most typically examined during a competitor analysis are, generally speaking, quite intuitive – such as products, prices, marketing strategies, geographic coverage, or competitors’ strengths and weaknesses.

It is worth noting that, often, one of the most important functions of analysis is precisely to identify who the main competitors are.

One area that has taken on unprecedented relevance in recent years is parcel delivery logistics. With e-commerce, statistics show that the quality of shipping services has a tremendous impact on customer satisfaction.

Which brings us to the next point.

The parcel shipping service from InPost, based on out-of-home delivery through an extensive network of collection points, is designed to meet the difficulties and challenges of modern logistics.

This approach makes it possible to achieve an exceptional price-quality ratio and is also increasingly popular among consumers. The results show it, and our focus on customer satisfaction has allowed us to achieve a 4.7 rating on TrustPilot.

Another of our guiding principles is environmental sustainability, a topic of fundamental importance in the modern world, both on an ethical level and, with the public’s growing awareness of this issue, on a commercial level.

Logistics is one of the great factors of differentiation and competition in the modern business world. Do not underestimate it and do not fail to experience for yourself everything InPost can offer you. Get in touch with us today and set your company’s logistics on the right track.