Creating a Competitive Analysis for your Industry
As our semester comes to an unfortunate end, our Digital Hub 2.0 starts to become a little more of a reality. We’ve all made tremendous strides towards completing and finishing our hubs this second time around. One major aspect of our hub is the Competitive Analysis. While many of us have started our Analysis there are some essential factors to creating a strong and thorough Analysis of our competition. Ike has extensively gone over how we should approach the production of our Competitive Analyses by showing us an Excel spreadsheet as well as the useful method known as SWOT Analysis. Examining your competitors in ways such as what services they offer, strengths, weaknesses, SEO check, clientele, social media presence and brand consistency are just to name a few. Taking the time to create a Competitive Analysis can lead you towards understanding your industry as well as your competitors and what it takes to become a trusted agency.
What was covered in class:
Some information that we covered in class was how to track your competitors through their Social Media channels and their engagement rates. We discussed that the only platform available to truly track the followers is Twitter, while combining the followers and fans (such as Facebook, LinkedIn) is acceptable. In order to calculate the engagement rate you can go back through the last month and do an engagement rate test, this entails looking at how many tweets they’ve produced along with the how many times the content was interacted with. If the company that you happen to be analyzing has a lot of channels just focus on Twitter, Facebook and LinkedIn. While it may be true that our digital agencies are just start-ups, examining competitors and how they’re successful in their own ways is paramount in developing a well built agency.
Why a Comprehensive Competitive Analysis is Important
To achieve and maintain a competitive advantage in reaching and selling your services to your target audience, you must obtain a complete knowledge of your competition. An in-depth Competitive Analysis will provide you with the following:
- An understanding of how your potential customers and target audience rate the competition
- A strong representation of what the competitor’s strengths and weaknesses through SWOT Analysis
- Gain insights on how to interact with your target audience by monitoring your competitor’s social media interactions
If you’re wanting to read more on how to create a well made Competitive Analysis – Click Here.
Questions to Consider:
- What problems, if any, have you encountered in creating your Competitive Analyses?
- Do you think that a Competitive Analysis is important when starting your digital agency? If so, why?
- What do you think is the most important part of a Competitive Analysis?