Am I supposed to know what's happening outside of my company?
Competition analysis is a strategy that involves researching major competitors to gain insight into their products, sales, and marketing tactics. It can help you learn the ins and outs of how your competition works and identify potential opportunities where you can outperform them. On top of that, it also enables you to stay atop of industry trends and ensure your product is consistently meeting and exceeding industry standards.
Whether a business is just entering the market or is a regular market player, it has to know its competition: who they are and how they work. This helps to stay atop market trends, identify potential opportunities to outperform competitors, and, what is more, get deeper insights into business customers.
For starters, you should understand if there are customers on the market, there will always be competition — in direct or indirect form. A lack of competition in the market could be very indicative. According to product management theory, business owners must think twice before investing in a market where no one operates. If there are no competitors, there must be a handful of reasons for that — no demand or some difficulties entering the market or working there.
When companies don't conduct a competitor analysis, they can't achieve the benefits associated, like:
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