Conducting a competitor analysis helps to spot weaknesses within your business and improve your bottom line after a detailed analysis of your competitors. This process often involves a rigorous review of webpages from companies that are competing with you on a local level, assessing their use of keywords and how they affect your own keyword usage. Don’t be fooled by the mention of the word “local”; much of competition analysis is done online, so there’s no spy-cameras or snooping around your competitor’s neighborhood involved!
Due to the public nature of the internet, it is relatively easy to obtain information about your competitors and some of the resources they use—things that may not be readily available by spying on them in person. This makes it easier to collate information for competition analysis, though be mindful that this works both ways; your local competitors can do the exact same and measure their strengths against yours using a white label online reputation management platform. So the best recourse is often to fight fire with fire.
By performing a competitor analysis, you will be able to assess and exploit your competitor’s weaknesses, and the kinds of threat they pose to your business and market share. Competitor analysis not only analyses your competitors, but almost measures your own business’s weaknesses and strengths in order to combat any efforts made against your business.
Competitor analysis helps to mystify the factors that are contributing to your businesses shortcomings and success, which in turn helps you to decide what measures should be taken in order to stay competitive in the market and best your competition.
It is important to know that there are two types of competitors when it comes to online business–direct and indirect.
Direct competitors are companies that conducts and sells the same services as your company. Knowing who your direct competitors are and how highly they rank on a search engine gives you an idea of how much effort is needed in order for you to push your rankings higher in order to get above them.
Indirect competitors are websites that do not provide the same services as you do, but, however, are ranked higher than you as they are using some of your keywords. These websites may often be Youtube videos, articles, blogs, or sites that host PDF documents.
There are several measures a company may do in order to perform a competitor analysis. They could implement an Alexa ranking in order to gauge the popularity of the site your competitor hosts. While it’s not possible to measure the exact traffic that goes through a competitor’s site, some website are capable of offering rough traffic estimates.