Competitive Landscape – An Important Aspect of Your Investor Pitch

 

Competitive landscape analysis is a business process wherein the direct or indirect competitors of a business are identified, and their products, customers, strengths, weaknesses, and failures are monitored to gather intelligence and build long-term business strategies. Competitive landscape analysis is essential if a company is looking for investments from external sources. As investors would like to understand the company’s market position and the competitive landscape. It helps a business understand its competitors’ market strategies and USPs, allowing it to improve its own business processes and navigate market challenges. 

The main factors that must be considered during competitive landscape analysis include:

• Type of competition – The business must identify its direct and indirect competitors. Usually, competitive landscape analysis is performed to identify the key competitors; however, a few indirect competitors who may disrupt the business should also be monitored.

• Positioning – Analyzing competitors’ positioning can help the business strategize its own positioning to differentiate its brand. It also helps the brand to stand out, besides improving brand recall and customer loyalty. It is also essential for designing marketing strategies.

• Pricing – A pricing model should be designed after checking what the competitors are charging for the same product and whether the target market is willing to pay that price. However, the brand can decide to charge a higher price if it is able to convince the customer of added value. It can also choose to make its offering cheaper and attract customers, without compromising on quality.

• Competitors’ mistakes – Competitors’ mistakes should also be examined during competitive landscape analysis. The business can learn from mistakes such as adopting a wrong marketing strategy, over or underestimating demand or ignoring disruptive technologies and ensure similar wrong moves are not made by them.

• Competitors’ strengths – The business must understand what the competitors are doing right which is helping them gain new customers and retain the customers. Understanding the unmet needs of customers that the competitors are unable to fulfill can be a key to winning customers.

The information gathered from competitive landscape analysis can help a company present a strong case to investors. The analysis can identify gaps and new opportunities in the market which were hidden until then. Businesses can choose to act on these potential ideas and stay a step ahead of competitors. Moreover, they must understand their competitive advantages and the specifics of the market which holds the advantages. Conducting competitive landscape analysis can help in smartly developing a business, strategizing comprehensive plans, and delivering an outstanding customer experience, all of which are the hallmark of a successful business.