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.

Competitive Analysis

Excel sheet presented in class

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:

  1. What problems, if any, have you encountered in creating your Competitive Analyses?
  2.  Do you think that a Competitive Analysis is important when starting your digital agency? If so, why?
  3. What do you think is the most important part of a Competitive Analysis?

 

 

9 thoughts on “Competitive Analysis Guidelines

  • April 11, 2016 at 9:41 pm
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    In the social media audit portion of the analysis I have struggled to find consistencies to judge the three agencies on and compare them to ours, but ultimately this helps with the SWOT Analysis.

    I definitely think it is important to know what your competitors are doing, to be able to measure and see where you stand. Once you know that you can make improvements to set yourself apart from the competition.

    I think all parts of it are equally important, each section offers insight into what you are doing right or wrong and allow you to adapt in order to be successful.

    Reply
  • April 12, 2016 at 9:55 pm
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    I haven’t really found any problems while doing the competitive analysis. I just wish the company I was analyzing would be more active on their channels so it would be enough data to pull from them.

    Competitive analysis is very important when starting a new business or agency. The competitive analysis can show you the pros and cons of the industry that you are going into. Also, the Competitive analysis can let you improve on what your competitors lack in. The analysis can also show you who to market your product towards.

    The most important part of the competitive analysis is the selling point. The selling point tells you what your message to your potential audience or customers will be.

    Reply
  • April 12, 2016 at 10:50 pm
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    This blog is fantastic Trey!
    I think one of the problems our group encountered with the competitive analysis is the fact that the agencies we chose aren’t very active on their SoMe channels. It can be difficult to get a general idea of what other agencies are doing via SoMe if they aren’t regularly posting content to different platforms.

    Overall the competitive analysis is extremely important! Creating this analysis can help you gain an inside look at the industry you want to work in. Dissecting a rival company’s strategy allows you to see what you like and don’t like, as well as what could potentially work for your company v. what definitely won’t work.

    I feel one of the most important aspects of the competitive analysis is looking at a company’s strategy for engaging with their customers via SoMe.

    Reply
  • April 13, 2016 at 12:19 am
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    Great post! So far, the only problems that have come up whilst completing the competitive analysis have been links to social channels not working and finding a SEO ranking tool, as opposed to woorank.com since my group all experimented with the tool before realizing that we had used up our free trial.

    I most certainly believe that a competitive analysis is an important component when starting a digital agency; it gives you the upper hand over your competitors by narrowing in on not only their weaknesses, but also what they’re doing right because learning from both is advantageous.

    While each section is important, I believe they’re most important when combined. As a whole the competitive analysis is reveals the key assets that strong brands possess and through research, what strategies are most successful.

    Reply
  • April 13, 2016 at 3:11 pm
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    I think the competitive analysis is incredibly important, especially for people like us who are just starting out. If we were really starting an agency, we probably wouldn’t have a ton of capital to start out with, so the way we spent our money would be super important to our success. With the competitive analysis, we can hone in on what agencies similar to ours are doing and what they’re having success with, so we can try to copy that and funnel our money into similar things. If we find that they’re doing something and it isn’t successful, then we don’t need to waste our time or our money.

    It is almost a way to test something out without having to actually spend the money to do so. Russ has talked about testing and learning when it comes to advertising, but with the competitive analysis, if you can find a competitor that is similar enough to you, they basically have done the testing for you already. If it’s successful, maybe implement something similar, if it’s not successful, don’t waste your time.

    Reply
  • April 13, 2016 at 7:48 pm
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    Finding the engagement rate has been difficult. I cannot seem to find this information on SEMRush and I don’t know if I should be doing intense levels of personal analysis and math for each channel of my selected company.

    Yes because it shows where your competition ranks at the time in which you are starting your business. This allows you to see who knows about social media and then what keywords will cost you more on AdWords.

    I think the most important part of a competitive analysis is knowing how active they are with the channels that they chose to utilize so that if I use those channels too I can optimize in the local market.

    Reply
  • April 13, 2016 at 10:35 pm
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    Nice article, Trey! I haven’t encpountered any issues with the competetive analysis so far, besides what others have mentioned about it being hard to assess an agency’s social channels when they don’t regularly post content to them.

    I think a competetive analysis is beneficial for a new digital agency to complete because it can highlight areas in which their competitors are lacking (or are very successful in) and then they can take insight from that and use it to better their own agency and get a leg up against them.

    I don’t think there is just one most important part of a competitive analysis. I think the combination of each part makes for a highly comprehensive, information-filled data source from which an agency can apply to their own practices.

    Reply
  • April 14, 2016 at 11:26 am
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    I personally haven’t had any problems with creating our Competitive Analysis because jesse and Trey are both working on ours. But like Jesse said they had some problems with finding all 3 brand’s consistencies and comparing it with ours.

    I do think the Competitive Analysis is very important when starting a digital agency because good marketing is always knowing who your competitors are and what they’re doing that’s similar to you and how you could be better. Both you and your competitors will most likely have the same target audience so while doing your SWOT analysis you should definitely find out how they engage with their audience so that you can have better engagement with yours.

    The most important part of a Competitive Analysis to me is finding the competitors strengths and weakness because what they succeed in you can also and where they lack you can succeed in that as well. I feel that if you know what your competitors need to work on then you can always be one step ahead of them.

    Reply
  • April 14, 2016 at 1:41 pm
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    This is an extremely informative blog post!
    So far, I haven’t had any problems with the competitive analysis. However the company I’m observing specializes in the production of digital marketing classes, which is a much different approach from what we are trying to implement so it makes competition a bit intimidating.
    I think the competitive analysis is almost necessary as it provides such a large amount of information on your competition, allowing you to stay on top of the game by utilizing their strength and weaknesses. It can also provide all insight you need on how to stand out and take your services a step further. All parts of a competitive analysis are equally important I think, it just depends on what metric you are trying to exploit to your advantage.

    Reply

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