B2B Competitive analysis

A competitive analysis examines various aspects, such as competitors' products or services, their pricing, marketing strategies, market share, and customer reviews. Online presence and social media activities also play an important role.

By analyzing these factors, companies can better assess their market position and develop targeted measures to differentiate themselves from the competition. Furthermore, competitive analysis enables them to identify trends early and respond flexibly to changes in the market environment.

Competitive analysis is therefore an essential component of any business strategy. It helps companies to

• assess your own market position
• Better understand competitors
• to recognize your own strengths and weaknesses
• Identify opportunities and risks
• Detect innovations and trends early
• To better understand customer needs and ultimately
• to develop competitive advantages

A competitor analysis is also part of a market analysis. A market analysis gathers information about the market (development, market potential, sub-sectors/niches), customers (information on number, structure, and development), and the competition.

Even though the terms competitive analysis and competitor analysis sound similar at first glance, there is an important difference between competitor analysis and competitor analyses.

A competitive analysis focuses primarily on individual, direct competitors. Information is gathered about their products, prices, marketing strategies, strengths, and weaknesses. The goal is to understand the position of these specific companies in the market.

Competitive analysis, on the other hand, is more comprehensive. It considers not just individual competitors but the entire competitive environment. This includes potential new entrants, substitute products, and general market trends. It therefore addresses the entire competitive situation in the industry, including all forces that influence competition.

The Five Forces model, developed by Michael E. Porter, helps companies better understand the competitive factors or forces in their industry and derive strategic decisions from them. It represents a very effective method for analyzing the competitive intensity and attractiveness of a market.

Here are the five forces in detail:

High barriers to entry, such as high investment costs, strict regulations, strong brand recognition of existing companies, or restrictions on access to distribution channels, make market entry difficult for companies. When barriers are low, there is a greater risk of new competitors entering the market and thus intensifying competition. It is therefore important for established companies to secure their position through innovations, brand strength, or cost advantages in order to minimize the threat posed by new market entrants. In this context, competitive analysis provides key information for strategic decisions .

When suppliers are few or offer unique resources or products, they have significant bargaining power. This can lead to higher costs for companies or limit the quality and availability of their raw materials. To counteract this, companies try to have multiple suppliers, build their own resources, or enter into long-term contracts. Our market research and industry analyses provide relevant data on this.

In industries with a few large companies or for standardized products, customers have significant bargaining power. They can push down prices, demand better terms, or influence product quality. Companies must therefore strengthen customer loyalty, create differentiating features, or offer added value to reduce customers' bargaining power. A corresponding analysis of the customer structure provides important information here.

When substitute products are readily available, inexpensive, or of high quality, the threat increases. This forces companies to continuously improve their products, drive innovation, or strengthen their unique selling points in order to retain customers. By conducting a competitor analysis, companies can keep track of potential substitutes.

High competition arises when there are many equally strong competitors, slow market growth, high fixed costs, or unclear opportunities for differentiation. Intense competition often leads to price wars, advertising battles, or innovation initiatives, which reduce profit margins. It is therefore important to keep an eye on the competition in order to make successful strategic decisions.

Porter's Five Forces offers a useful approach to analyzing competitive dynamics in an industry. The model helps companies achieve long-term market success. A competitive analysis, among other things, provides the necessary data and information. This provides companies with important information about their competitors. Based on this information, they can make strategic decisions and take actions, for example, through differentiation, cost leadership, or niche strategies.

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