Analyzing competitor’s strategy is very important in the success of any business. The process helps companies to foresee competitor’s actions and to exploit competitor’s limitations. Before launching a new product or entering a new market, marketers usually gather necessary information on competitors.
First step in competitor analysis is to identify competitors. It depends on the size of the business and the place where the product is to be marketed (local market or international market). Identifying the market share and dominance of competitors enables firms to make out whether there will be any market share available for their business. Yet other factors like competitor’s customer base, their future plans, and positioning strategies need to be evaluated in competitor analysis. Competitor analysis is nowadays used increasingly for Social Media as well.