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Competitive Market Analysis: How and Why You Should Track Your Competition

It’s no secret. Knowing who your competition is and how they’re performing is pivotal for you, the entrepreneur. To succeed in your respected industry, you need to understand who you’re up against. From the companies that are dominating the market to the up-and-comers who might bring a different twist to an established product or service, your competition can directly affect how you operate YOUR business and whether you’re successful or not.

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That’s where competitive monitoring comes in – to help your business rise above the competition. When monitoring, you’ll be looking at every move your competitors make, from their funding and acquisitions to their pricing. You can then use that data to perform a competitive analysis to revise your business plan as necessary and to adapt to changes in your industry. With the right tools, competitive monitoring and analysis can be simple and easy.

What Is Competitive Monitoring?

Competitive monitoring is the process of auditing your competitors, then analyzing and reviewing the data collected to help your business. From marketing initiatives to acquisitions, watching your competition gives you valuable insight that will allow you to make more data-driven choices and changes to enable you to stay a step ahead of other businesses in your space.

How to Draft Your Competitive Landscape

Photo Credit: Rotten Raw

Monitoring your competition can also reveal their weaknesses, giving you an opportunity to exploit any shortcomings to your advantage. You can evaluate how their business plans are performing in the market and adapt yours accordingly to learn from their mistakes or best practices. With the right data and a quality analysis, you can also get important intel that may hint at a competitor’s future intentions.

Competitive monitoring can also be a visual window into your industry as a whole. When looking at multiple competitors, you can see where the market is moving and how to fill in the gaps, so your company can become the leader of the pack.

Who Should You Be Monitoring?

The truth is, your customers don’t and won’t engage with just one or two businesses that sell the same or similar products and services as you do. Nor will they be exposed to just your company when it comes to all of the other noise out there competing for their attention. Obviously, you’ll want to track the competition and perform a regular competitive market analysis. It almost seems like an endless sea of businesses and services that are out there that you’ll have to sift through. You need to find who is worth monitoring and who isn’t.

The two types of challengers you should be monitoring are the direct competitors and the indirect competitors.

Direct Competition

The companies that offer a product or service that is the same or similar to yours are direct competition. They are the Pepsi to your Coke, the Uber to your Lyft. Your potential customers will compare you and them when deciding to purchase a product or use a service. Consumers will compare you and your competition based on factors such as price, product, and availability. Direct competitors are the businesses you want to keep in the forefront of your mind when monitoring and analyzing data. They’re your immediate threat. Satisfying the desires that their products or services don’t meet in your industry and evolving your business before they do will give you the upper hand you need to dominate.

Indirect Competition

Businesses that offer different products or services that you do but tap into the same consumer base are your indirect competitors. If you’re a restaurant, they are a grocery store. While your challengers may not serve lasagna or sub sandwiches, they sell the ingredients to make those meals and can still satisfy the needs and wants of your consumers – indirectly. Indirect competitors are not as much of a threat to your business as your direct competitors but monitoring and analyzing them offers a wealth of information and insight. The data you find can also give you a fresh outside perspective of your respected industry. This is especially true if they introduce new ideas that aren’t normal practices or services for you and your direct competitors. Just like your direct competition, they can also inspire you to adapt your business and grow into something more.

Competitor Analysis

Photo Credit: Steve Blank

How Do You Monitor the Competition?

How you monitor the competition can give you quite an edge. Searching the internet for information such as funding options or a list of investors can be time-consuming. Plus, ensuring your data is reliable can be difficult. Not everything on the web is real or accurate. Without the right competitor tracking tools and services, you could find yourself with dated information, waste time analyzing the wrong data or even miss new businesses that are trying to enter your industry. Crunchbase Pro is the right tool to help you collect reliable data, visualize and analyze that information and make informed, actionable decisions about refining your businesses’ strategy.

Crunchbase Pro advanced search

Advanced Search Capabilities with Crunchbase Pro

With Crunchbase Pro, your monitoring capabilities are taken to the next level. Our database uses unique information provided directly from investors and businesses and are reviewed by our team, ensuring you receive data that can be trusted. Mix and match hyper-focused search filters that will help you to comb through our comprehensive database effectively and efficiently. With a host of monitoring tools, your search for competitor information will always turn-up the results you are looking for.

Advanced Search

You can apply dozens of unique filters to sift through our database. Find the organizations that are your direct and indirect competitors. Use our advanced search system and make the clutter of web browsers disappear. Pertinent information on competitors such as location, funding and categories and more are condensed and presented as easy-to-follow visuals.

Charts

How you view your data is key. With Crunchbase Pro, the data you are looking for is meticulously organized to help you analyze and understand the information quickly and clearly.

Charts and Data Visualization on Crunchbase

Crunchbase Pro Charts: Exclusively with a Crunchbase Pro license

Alerts

Our monitoring tools allow you to set up notifications and alerts for the latest news about the competition as it happens including acquisitions and changes in funding, to name a few. With our tools, you’ll be up-to-date and ready to react in real time.

Sort with Crunchbase Rank & Trend Score

Our system and algorithms score businesses and provide you with information on who is dominating your market, who you should be looking out for and where you stand in the industry.

Export CSV

Most competitive data can be exported to your preferred CSV file. Easily plug in data into your CRM or database for additional research.  

Analysis Tools

The time spent analyzing data is shortened. Statistics including averages, totals, and metrics are at your fingertips with a few simple keystrokes.


Learn more about how Crunchbase Pro can help you research your competitors