Ways of Studying Competition

Studying competition is crucial for any business or individual looking to thrive. It involves understanding who your competitors are, what they do well, where they fall short, and how you can differentiate yourself.

Here are various ways to study competition, broken down into different approaches:

I. Market Research & Competitive Analysis (Business Focus)

This is the most common and comprehensive approach for businesses.

• Identify Your Competitors:
  • Direct Competitors: Offer similar products/services to the same target audience.
  • Indirect Competitors: Target the same market with different products/services that fulfill similar needs (e.g., a movie theater vs. a streaming service).
  • Online Search: Google searches, industry directories, review sites (Yelp, Trustpilot, G2, Capterra).
  • Industry Events: Conferences, trade shows, and expos are great for seeing who’s exhibiting and presenting.
  • Customer Feedback: Ask your customers who else they considered, or why they switched from a competitor.
  • Supplier Insights: Suppliers often work with multiple businesses in the same industry and can offer general insights (though they won’t share confidential info).
  • Competitor Hiring: Watching job postings can reveal their growth areas, new initiatives, or talent needs.
• Gather Information (Act like a customer!):
  • Website Analysis: Explore their products/services, pricing, messaging, calls to action, and overall user experience.
  • Social Media Monitoring: See what they post, how they engage with customers, and what customers are saying about them (and you!) on platforms like Facebook, Twitter, Instagram, LinkedIn, etc.
  • Sign Up for Newsletters/Email Lists: See their marketing communications, promotions, and content strategy.
  • Read Customer Reviews: Websites like Yelp, Google Reviews, and industry-specific review sites offer valuable insights into customer satisfaction, pain points, and what people love/dislike.
  • Purchase Their Products/Services: Experience their offerings firsthand to understand their quality, customer service, and overall delivery.
  • Press Releases and News: Keep up with their announcements, partnerships, and new product launches.
• Analyze the Information:
  • SWOT Analysis: For each competitor, identify their Strengths, Weaknesses, Opportunities, and Threats. Then, conduct one for your own business in relation to them.
  • Competitive Advantage/Unique Selling Proposition (USP): What makes them stand out? What problem do they solve better than anyone else?
  • Pricing Strategy: Compare their pricing models, discounts, and shipping rates.
  • Marketing & Messaging: How do they position themselves? What are their key selling points? What channels do they use (SEO, paid ads, content marketing, etc.)?
  • Traffic Sources: Use tools like Similarweb, Semrush, or Ahrefs to understand where their website traffic comes from and what keywords they rank for.
  • Customer Demographics & Expectations: Who are their target customers, and what are those customers looking for?
  • Technology & Innovation: Are they early adopters of new tech? How do they leverage it?
  • Distribution & Delivery: How do they get their products/services to customers?
• Tools for Competitive Analysis:
  • SEO Tools: Semrush, Ahrefs, Moz, SpyFu (for keyword research, backlink analysis, competitor ad spend).
  • Social Media Monitoring Tools: Sprout Social, Hootsuite, Brandwatch.
  • Market Research Platforms: Similarweb, Statista.
  • Review Aggregators: G2, Capterra, industry-specific review sites.
  • Google Alerts: Set up alerts for competitor names or keywords to stay updated on their online mentions.
  • Spreadsheets: For organizing all the gathered data and comparisons.

II. Academic and Theoretical Approaches

Beyond business strategy, competition is studied in various academic fields:

• Economics:
  • Market Structures: Perfect competition, monopolistic competition, oligopoly, monopoly. Economists analyze how different market structures affect pricing, output, and efficiency.
  • Game Theory: Studies strategic decision-making in situations where the outcome for one player depends on the actions of other players (e.g., pricing wars, advertising campaigns).
  • Industrial Organization: Focuses on the structure of industries and how firms compete within them.
  • Antitrust Laws: Examines policies aimed at preventing anti-competitive practices and promoting fair competition.
• Biology/Ecology:
  • Interspecific Competition: Competition between different species for resources (food, water, territory).
  • Intraspecific Competition: Competition among individuals of the same species for resources.
  • Competitive Exclusion Principle: States that two species competing for the exact same limited resource cannot coexist.
• Psychology/Sociology:
  • Social Comparison Theory: How individuals evaluate their own abilities and opinions by comparing themselves to others.
  • Motivational Psychology: How competition can motivate individuals or groups to achieve goals.
  • Group Dynamics: How competition affects cooperation and conflict within and between groups.
  • Behavioral Economics: Explores how psychological factors influence economic decision-making in competitive environments.
• Sports & Education:
  • Performance Enhancement: How competition can drive individuals and teams to improve.
  • Skill Development: The role of competition in fostering specific skills and mental toughness.
  • Fair Play and Ethics: The importance of ethical behavior and sportsmanship in competitive environments.

By employing a combination of these methods, whether for business or academic purposes, you can gain a deeper understanding of competitive dynamics and leverage that knowledge to your advantage.