Competitive Analysis for Entrepreneurs in 2018

A competitive analysis is essential for entrepreneurs to understand their industry landscape, identify competitors’ strengths and weaknesses, and uncover opportunities for differentiation. In 2018, several key trends shaped the way businesses approached competitive analysis. Here’s an overview of the important elements entrepreneurs focused on in 2018:

1. Industry Disruption and Innovation

• Trend: The rapid pace of technological advancement in 2018 pushed many industries into a state of disruption. Startups and established businesses alike were using AI, blockchain, automation, and data analytics to disrupt traditional models.
• Competitive Focus: Entrepreneurs needed to identify how technology was reshaping their industry and examine how competitors were adopting innovative tools. Staying ahead of trends such as e-commerce automation, digital marketing tools, and customer service AI became essential for maintaining a competitive edge.

2. Digital Presence and Online Reputation

• Trend: With more businesses going digital, having a strong online presence became crucial. Social media, online reviews, and SEO played a significant role in shaping customer perceptions and driving traffic.
• Competitive Focus: Entrepreneurs closely monitored competitors’ digital strategies—analyzing their social media engagement, website traffic, content marketing efforts, and online reputation (e.g., customer reviews). Tools like SEMrush and Ahrefs were used to assess competitors’ SEO strategies, keywords, and backlinks. Entrepreneurs also paid attention to competitors’ social media interactions and customer feedback.

3. Customer-Centric Strategies

• Trend: A customer-first approach gained importance in 2018. Personalization, customer experience (CX), and direct communication channels (like chatbots and social media) became essential for building strong customer relationships.
• Competitive Focus: Entrepreneurs analyzed competitors’ customer service models, loyalty programs, and user experience design. Understanding how competitors gathered customer feedback and improved user experiences helped in identifying potential areas to stand out. Tools like HubSpot and SurveyMonkey allowed businesses to gather insights into competitors’ customer engagement and CX strategies.

4. Pricing and Product Differentiation

• Trend: Competitive pricing remained crucial, but businesses in 2018 focused more on product differentiation. Offering unique value propositions, such as enhanced features, superior customer service, or environmentally friendly products, helped companies win over customers.
• Competitive Focus: Entrepreneurs studied competitors’ pricing models, package tiers, and promotional strategies. Analyzing competitors’ product offerings, features, and value propositions was important to highlight how their own product or service could be differentiated, either by price, quality, or additional benefits.

5. Marketing and Branding Strategies

• Trend: Content marketing, influencer partnerships, and data-driven advertising became central marketing tools. Effective branding combined with well-targeted digital ads helped companies stand out.
• Competitive Focus: Entrepreneurs analyzed how competitors were marketing their products, who their target audience was, and which platforms they used (Google Ads, Facebook, Instagram). They also assessed the tone and message of competitors’ branding and communication strategies to find gaps and opportunities for their own brand positioning. Entrepreneurs often used analytics tools like BuzzSumo to track trending content and measure the success of their competitors’ content marketing efforts.

6. Globalization and Market Expansion

• Trend: As e-commerce grew, many companies explored global markets in 2018. International expansion became a key strategy, allowing businesses to tap into new markets and diversify revenue streams.
• Competitive Focus: Entrepreneurs analyzed how competitors were expanding internationally, looking at factors such as localization of products and services, international marketing strategies, and logistical considerations like shipping and customer support in new regions. Tools like SimilarWeb were used to track global web traffic and identify regions where competitors were gaining traction.

Key Tools for Competitive Analysis in 2018:

• SEMrush / Ahrefs: To track competitors’ SEO performance, keyword rankings, and online visibility.
• BuzzSumo: For content analysis and understanding the type of content competitors are creating and how it’s resonating with audiences.
• Google Trends / SimilarWeb: For assessing competitors’ traffic, market expansion strategies, and audience engagement.
• Social Media Listening Tools (Hootsuite, Sprout Social): To track competitors’ social media presence, engagement, and customer sentiment.

Conclusion:

In 2018, competitive analysis for entrepreneurs focused heavily on technological disruption, digital presence, customer experience, and product differentiation. By leveraging digital tools and insights, businesses could understand their competitors’ strategies and make informed decisions to carve out a unique position in the market.