What is competitor analysis

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Competitor analysis is the process of researching and evaluating competitors’ strategies, products, services, strengths, weaknesses, and marketing approaches. This analysis provides valuable information about what factors contribute to market success or failure in a given industry and identifies opportunities and threats to a business.

The main objective of competitor analysis is to be able to make more informed decisions and formulate strategies that will help a product or service stand out in the market.

Competitors are generally classified into three main types: direct, indirect, and substitute.
Direct:
Direct competitors offer products or services that are functionally estonia consumer email list similar or identical to the product, serving the same needs and target markets. These competitors are direct rivals for the same customers.

Example: If you operate a cafe in the city center, your direct competitors will be other cafes and restaurants in the same area that offer similar coffee, snacks, and lunch options.
Indirect:
Indirect competitors offer products or services that may satisfy the same needs or desires of the target audience, but do so in different ways. Although their products are not identical, they compete for the same consumer budget.

Example: In the context of a cafe, an indirect competitor might be a street food kiosk that offers quick and inexpensive snacks. Although the products are different, both options appeal to people looking for a quick and convenient lunch solution.