Analyzing the activities of competitors is one of the steps that is worth taking before entering the German market with your offer or looking for an idea on how to stand out from your rivals.
Why is it so important and what can your company gain from it?
Who is the market and competition analysis for?
They say it’s best to keep your friends close and your enemies even closer. There’s a certain analogy here with competition. There’s probably nothing that motivates entrepreneurs to take an what recommendations do we have on opportunities? role than demanding competition. so it’s good to know what’s going on.
It is worth investing in the analysis of competitors’ activities at the following stages:
- starting a company
- entering a new market with a product/service
- when the company is generating decreasing profits/its best days are already behind it
The knowledge gained from the analysis will allow you to plan your strategy to stay one step ahead of them.
Why analyze competitors’ activities in Germany?
Research on the German judy gilbert vp, people operations – global business will allow you to:
- finding a niche in the market
- identifying the strengths and weaknesses of the competition,
- drawing conclusions from possible mistakes of rivals
- check what influenced their success
- reviewing their marketing activities
- estimating demand for a product/service
The methods of researching the competition are really different. The scope of the areas analyzed may change depending on the activity. You will need slightly different information if you have, for example, a construction company operating within a given state, and different information if you run an e-commerce business.
Competitive Analysis Germany — What and How?
The first step in competitive analysis is to identify the rivals you can realistically compete with. In other words, if you have a small business, don’t compare andorra business directory to large companies. The companies that are being analyzed should be similar to your company in terms of their offering, size, or area of operation.
The next step may be to analyze the keywords of your competitors and the content they create, i.e. check what your rivals are using on the Internet.
It’s also worth checking if your competitors are active in social media, and if so, how they do it. What channels do they use, how do they advertise? What type of content do they use? Do they engage their audience? Or maybe they work with influencers?
The latter may seem funny to some in the industry, but know that when, for example, a local influencer renovates an apartment and praises the services of a specific renovation company, they can count on increased interest in their services. Don’t underestimate influencer marketing!
Customer service and pricing policy
In business, it’s not about selling, but about selling. That’s why the relationship between a company and its customers is so important. A satisfied customer comes back and can also recommend the company to friends – and an honest recommendation often works better than even the best-optimized Google Ads campaign in Germany . That’s why competitor research is so important.
Check out how your competition builds relationships with their customers. Maybe they have an attractive loyalty program, comprehensive services or simply fantastic customer service?
With this knowledge, you will be able to come up with something that will attract customers to you.
Also, analyze the opinions of your rivals – maybe you will find some clues there about what they lack, and you could use it in your offer.
To compare your offer with the offer of competing companies, you should also consider prices. Of course, we do not encourage anything that does not involve a price war.
We wrote about how to sell in Germany without undercutting prices in the article Business in Germany and the price war. How to avoid it? ) – simply comparing prices is one of the basic elements of the analysis.
Analysis of competition activities in Germany – why is it worth it?
If you want to be effective in the market, learning about your competitors is a must. The conclusions drawn from the analysis will help you discover a gap or niche in the market, as well as identify your own competitive advantage.
Note! Market and competition analysis cannot be used to copy someone else’s solutions! Treat it as a guide to how to do even better than them.