In competitor analysis, which activity is typically performed?

In competitor analysis, identifying competitors and conducting a SWOT analysis is a critical activity because it allows a business to understand its competitive landscape thoroughly. By identifying key competitors, a company can evaluate their strengths and weaknesses, opportunities, and threats. This analysis provides insights into how the company compares with others in terms of capabilities, market share, product offerings, and target audiences. It brings clarity to the competitive environment and helps in strategic planning by revealing gaps in the market that the business can exploit or areas where the business may need to improve to stay competitive.

Conducting a SWOT analysis specifically enables businesses to map out their position relative to competitors, helping them to capitalize on their own strengths and mitigate any weaknesses in comparison to others in the market. This knowledge is crucial for making informed decisions regarding product development, marketing strategies, and overall business direction.