What does a competitive analysis assess?

A competitive analysis primarily assesses the strengths and weaknesses of current and potential competitors within a market. This type of analysis provides businesses with critical insights into what their competitors are doing well and where they may be lacking, which can inform strategic planning and decision-making. By understanding competitor positioning, product offerings, pricing strategies, and market share, a company can better identify opportunities for differentiation and areas where it can potentially gain a competitive advantage.

This analysis is vital for developing effective marketing strategies, product development plans, and overall business tactics. It helps organizations understand their position in the market relative to others, allowing them to capitalize on competitors' weaknesses while reinforcing their strengths.