Competitor analysis is the practice of identifying, evaluating and monitoring the activities of firms considered to be potential competitors. The objective of competitor analysis is to develop a sustainable competitive advantage over one’s competitors. In order to do this, companies must first understand what their competitors are doing, what their strengths and weaknesses are, and where they are vulnerable.

Competitor analysis can be performed in several ways, but some common methods include SWOT analysis, benchmarking, and customer analysis.

SWOT analysis looks at a company’s strengths, weaknesses, opportunities and threats in order to identify areas where they could improve or capitalize on their position.

Benchmarking involves comparing a company’s performance against others in the same industry in order to identify areas where they could improve.

Customer analysis involves understanding the needs and wants of a company’s target market in order to develop products or services that meet those needs.

Competitor analysis is an important part of any business’s marketing strategy. By understanding their competitors, companies can make informed decisions about how to position themselves in the marketplace and what offerings they need to provide in order to be successful.