Competition analysis versus competitor analysis
The market analysis consists of a business initiative in order to gain an idea of the commercial viability of economic activity (it is recommended to conduct two market studies in two main analyzes each year).
It examines the behavior of consumers in order to discover their consumption needs and how to satisfy them, find out their buying habits (places, times, preferences, etc.).
Its ultimate goal is to provide data for improving market techniques for selling a product or series of products that cover the unsatisfied demand of consumers.
While competition analysis is the study of your competitors and how the two businesses compare. By assessing your competitor’s strengths and weaknesses, they can begin to formulate how to give your company an advantage. The analysis is part of the company’s marketing plan and provides a link to the growth plans.
The evaluated competitors are:
Direct: Businesses that sell the same type of services and services of your own have the same market.
Indirect: Businesses that sell substitute products or can be used instead of your products or services.
Potential New Contestants: While you may not be able to predict the future, any news about a new business entering your market should be taken into account when analyzing your current and future competition.
To perform the competition analysis, you need to consider these questions about each of the competitors you have identified: strengths, weaknesses, publicity, and financial resources.
Market analysis or market research is the activity for understanding the dynamics of a given market. These can be the size, growth rate, profitability, market costs of product 2, possible expansion zones, etc. This is a method of understanding things.
Competitor analysis is the act of understanding the strategies, shortcomings, and product/service products, adjusting the product market and pricing (* and many more *) of your competitors in that market.
For example, let’s say we did market research on the toy industry in the United States. There is a good growth rate and profit margins are acceptable. We decided to invest in this area. Now we need to analyze competitors in order to understand the pricing strategies, marketing channels, sales-sales, and cross-selling strategies, branding, etc. of potential competitors to take advantage of their weaknesses or learn from their knowledge.
Market analysis is essentially understanding the demand for a particular product or service. This may include market size, customer base, and segmentation, distribution channel, etc.
Competitive analysis is understanding what alternatives our target customer can have, rather than becoming our customer. It is not limited to competition with the same type of product, but also to any other product that serves the same benefit as our offer
Cut to the chase:
The market analysis deals with the market space (comprehensive and submitted market);
The competitive analysis deals with competition and its dynamics;