Competitive Analysis
Competitive Analysis: Understanding the Market Context
An effective strategy for web design and marketing needs to involve an understanding of the competitive landscape. While user-centered design focuses on the user needs/tasks, and information architecture focuses on content, these two aspects alone offer an incomplete picture. What is missing is the context: the environment in which the website or web application is used as well as the market in which it exists.
Exploring one aspect of this context, the business marketplace of competing companies/products/services, is the main focus and reason for commissioning a competitive analysis.
The role and benefits of competitive analysis
A competitive analysis is the examination of the companies that directly compete with your products, goods and services in the market niche that your company operates in. The results will highlight your companies’ position in the competitive landscape and provide the intelligence needed to formulate the most effective marketing strategies.
Understanding the competition
The primary benefit of any competitive analysis is a better understanding of what your competitors are doing to differentiate themselves in the market place. The intelligence gathered regarding pricing points, extra services, or improved customer support that they are offering customers will allow you to make informed decisions on what it takes to be competitive in the marketing place. Finding your competitive advantage is essential to streamlining your marketing message.
Build domain knowledge
A professional competitive analysis expands the knowledge base inside and outside of your organization. Those working on your marketing campaign, website, or web application will be able to learn the full scope of your business and the obstacles you face. The analysis will offer information about content, functionality, and call to action strategies that might not have been observed from the initial consultation.
Identify best practices
Exploring competitor websites offers the opportunity to discover what is working well for them, as well as what is commonly being offered via the Web. For example, if all the competitors are offering specific content and functionality, users will likely expect your site to offer similar content and functionality. If they are absent, users may go to the competitor site instead. It is important to note that user expectations often go beyond just giving the information or offering the functionality, and move into questions of information design and interaction design. In other words, what is the quality of the user experience? Poor implementations are unlikely to result in higher conversion rates.
Expand the dialogue and the possibilities
The final benefit comes from expanded dialogue within the development team, and with other units in your company, about what competitive data means to your strategic direction. Such dialogue can open up new options that would not otherwise have been considered. Competitors may be taking various approaches to reaching the customer base, so multiple possibilities exist. In this situation, a completely novel approach might be best, since no standard is emerging.