Job Location
Competitive Analysis
Competitor Benchmarking
Competitor benchmarking involves systematically comparing your business processes, products, and performance metrics against industry leaders or direct competitors to identify performance gaps and areas for improvement.
BUDGET
3
/5
Can be moderately expensive depending on the depth of the benchmarking and the cost of acquiring competitive data
EFFORT
2
/5
High effort required to continuously gather and analyze competitive data accurately
IMPACT
5
/5
Very high impact as it directly informs strategic decisions that enhance competitive positioning
PRODUCT LIFECYCLE STAGE
Product Development, Growth and Scaling, Market Understanding
GOALS
Identify Best Practices: Understand industry standards and best practices through the lens of competitors’ successes.
Spot Improvement Opportunities: Highlight areas where your business can improve to gain competitive advantages.
Align with Industry Standards: Ensure your offerings meet or exceed the benchmarks set by market leaders.
IMPLEMENTATION
Select Benchmarking Targets: Choose competitors or industry leaders who exemplify excellence or directly compete with your business.
Define Key Metrics: Determine which performance metrics or product features are crucial for comparison.
Collect Data: Gather information on the selected metrics, using public data, market reports, and possibly customer feedback.
Analyze Comparisons: Compare your findings against your own metrics and processes.
Identify Gaps and Strengths: Recognize where your business outperforms or falls short compared to the competition.
Strategize Improvements: Develop strategies to leverage strengths and address weaknesses.
Implement Changes: Apply the improvements and monitor their impact over time.
TIPS FOR TESTING THE RESEARCH
Continuous Monitoring: Regularly update your benchmarks to stay relevant with industry changes.
Cross-functional Involvement: Engage various departments to ensure all aspects of the benchmarking are thorough.
Objective Analysis: Maintain objectivity to ensure that insights lead to actionable and unbiased strategies.
AI PROMPT
Can you help analyze recent industry reports to find data on how our product speeds compare to our main competitors?
EXAMPLE
A mobile app development company conducted competitor benchmarking to compare their app’s user interface and feature set with those of leading competitors in the fitness tracking industry. The analysis revealed that competitors offered more personalized workout recommendations, a feature highly valued by users. Responding to this insight, the company developed a similar personalized feature, significantly improving user engagement and satisfaction, thereby increasing market share.
Try the Competitive Analysis Workshop.