Competition analysis is an examination of the most relevant competitors in a sales market. The analysis is part of the competitive intelligence, or the systematic gathering and appraising of information about competitors, competing products, market developments, industries, patents, technological developments, and customer expectations.
The competition analysis is usually carried out separately for different planning entities as well. After all, a company usually competes with different rivals in different markets. Data about market leaders and their success factors are of central importance. The analysis of the competition examines:
- Economic conditions
- Current market position
- Organizational structure
- Assortment structure
- Relationships with suppliers and customers
Information about competitor companies is not as easy to obtain as data about your own company, and so is almost always available on a smaller scale.
Analysts base the examination on primary sources such as interviews with industry experts, surveys of (former) employees, customers, suppliers, competitors’ sales assistants, trade fairs, and congresses. As secondary sources there are annual reports, publications of chambers of commerce and market research institutes available, as well as industry newspapers, patent applications, and specialist databases.