Introduction
Making the right decision in an increasingly competitive business environment requires evaluating what your competitors are doing and staying ahead in the market. SWOT analysis is also a method that can help to create pricing strategies and do competitive pricing analysis to stay ahead in the market. A competitor’s SWOT analysis helps businesses in analyzing competitor’s movements. It’s a strong method to gain valuable insights into their strengths, weaknesses, opportunities, and threats. Read this blog to find out more about SWOT analysis, SWOT competitive pricing analysis, when you should do SWOT analysis, and what are strategies of it.
What Is SWOT Analysis?
SWOT analysis is a method for evaluating a company’s performance, competition, and risk. By using internal and external data, this approach can help your business develop better strategies and navigate away from duplicate or less-than-expected situations. An independent SWOT analyst, entrepreneur, or competitor can help you determine whether your business, product, or business is strong or weak and why.
What Is a SWOT Competitive Pricing Analysis?
As said above, a SWOT competitive pricing analysis includes Strengths, Weaknesses, Opportunities, and Threats. The process takes you into your competitor’s mindset. You also take a look at your competitor’s strengths, as well as the shortcomings that are stopping their growth. After knowing their strengths and weaknesses, you can reach your goals and stay ahead of them. You also consider external elements, like your competitors’ opportunities and threats. You can investigate which factors are ruining their opportunities to stay in the competition and increase your chances of going ahead. You can also check what threats they are facing and how this may affect their future decision-making and make correct choices for your business.
When to Conduct a SWOT Competitive Pricing Analysis?
There are many reasons why you might think it is the right time to do a competitive pricing analysis with the SWOT method to know about your competition. You can conduct a SWOT competitive pricing analysis when:
You are new in the market
If you are entering a new market, you should perform your research beforehand. A SWOT analysis of your top competitors will help you determine whether you will succeed and what is best to start as a newcomer in the market. You should first understand your competitor’s strengths and shortcomings. It will allow you to create a strategy to take advantage of their weaknesses and gain an advantage over them in the market. You can also prepare for any other threats to your business in advance.
You are launching a new product
When you are releasing a new product, it’s important to evaluate how and what your competitors offer. Which qualities do customers like the most? What price range are they willing to pay? And some other factors. A SWOT competitive pricing analysis will help you answer these questions and gain a better understanding of your competitors in the market. This will allow you to properly position your product and ensure it appeals to your target audience.
You are going to do a campaign
When you are planning to do a marketing campaign, you should understand your competitor’s marketing approach, which can be a source of inspiration and help. You should understand things like for on which channels they are selling. What messages do they convey? Which audience are they targeting, and how? A SWOT competitive pricing analysis will allow you to properly position your product and ensure it appeals to your target audience.
You are stuck
If you think your company is stuck in stagnation, a competitor SWOT analysis can provide the insights that can help your company to come back on track again.
There can be several reasons for stagnation, like when you aren’t getting enough new leads, your conversion rates are low, your price is too high, or your product cannot beat your competition. A competitor SWOT analysis can help you discover these problems and develop a strategy for solving them.
What Are Strategies for Competitive SWOT Analysis?
Identify your competitors
Identifying your competitors is the first stage. This depends on what industry and market you are starting your business. If you’re in a small niche market, you might have only one or two direct competitors. If you’re in a huge and established market, you will have dozens of competitors. In this case, you should choose your four or five main competitors. For example, if you are new to entering a market, you can target competitors who have already just come before you or are already established in that area.
Gather the data
Once you’ve identified who your competitors are, now you have to begin gathering data about them. You can collect various types of data from various sources, including:
- Their website has information about their products, prices, and more.
- Social media marketing includes advertising, customer feedback, audience, and more.
- Business reports such as revenue, capital, financials, and other information.
- News like press releases, newsletters, and so on.
- Customer and employee reviews.
Pay special attention to product details, promotional offers, and marketing activities they have conducted in the past. Examine their technology stack, discover weaknesses in their website, and improve them in your website to attract their customers.
Conduct a SWOT competitive pricing analysis
Now that you have gathered your competitor’s data, analyze that data and do a SWOT analysis for each individual competitor. It is divided into 4 parts:
Strengths: Determine the strengths of your competitors. Check what makes you unique from them and how they outperform you in specific areas. This can include innovative marketing strategies, loyal customers, a product with better features, and so on. Examine how all of these strengths contribute to their competitive advantage and implement them in your product to beat them.
Weaknesses: Identify areas where your competitors fall short. These can range from bad customer service to incompetent staff. Take advantage of these vulnerabilities and stay ahead of them in competition.
Opportunities: Examine your competitors’ growth opportunities, such as their specific marketing trends, specific planning, and so on. This will help you to understand how to grow and gain loyal customers.
Threats: Find out if there are any threats to your competitor’s market performance. Some examples include not following the law, price inflation, price wars, or penalties. It also includes customer preferences. Understand these threats and beware of them to stay ahead in competition.
Analyze your results
Analyzing your results is an important and last part of SWOT analysis. So, once you understand all of your rivals’ strengths, weaknesses, opportunities, and threats, now you have to implement and examine your results. Identify company trends and patterns that can provide you with strategic insights. Check your company’s vulnerabilities and the opportunities that can be capitalized on in place of them. Consider how you will handle their shortcomings and prevent risks.
Conclusion
Now that you’ve understood your competitor’s strengths and shortcomings, it’s time to take action. Use this information to make a strategy to beat them at their own game. You can rethink your marketing strategy but also focus on enhancing product quality.
Conducting a SWOT competitive pricing analysis is more than simply a strategic exercise. It is an essential step in assuring your company’s long-term success. Most importantly, it allows you to learn about the market, understand where you stand in comparison to your competitors, and win against them. Head over to Rubick.ai to discover cutting-edge tools and solutions.
