What is a competitive analysis?

A competitive analysis is an assessment of competitors' strengths and weaknesses relative to one's own business. This process involves identifying who your competitors are, understanding their strategies, and evaluating how they perform in the marketplace compared to your own business. This analysis is crucial for developing effective marketing strategies, as it helps businesses pinpoint areas where they can differentiate themselves and capitalize on competitors' vulnerabilities.

By understanding the competitive landscape, companies can make informed decisions about product development, pricing, and promotional tactics, ensuring they position themselves strategically in the market. This analysis not only guides businesses on where and how to compete but also aids in anticipating market trends and shifts driven by competitors' actions.

In contrast, other options focus on different aspects of market research, such as customer feedback, market size estimation, or surveys, which do not directly address the evaluation of competitors in relation to one's own company.