Competitive analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors.
Profiling combines all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment.
As a result, traditional environmental scanning places many firms at risk of dangerous competitive blindspots due to a lack of robust competitor analysis.
[4] It is important to conduct the competitor analysis at various business stages to provide the best possible product or service for customers.
The raw material of competitive advantage consists of offering superior customer value in the firm's chosen market.
Customer value is defined relative to rival offerings making competitor knowledge an intrinsic component of corporate strategy.
[7] These profiles give an in-depth description of the competitor's background, finances, products, markets, facilities, personnel, and strategies.
It may also indicate a new promotion strategy such as push, pull, balanced, short term sales generation, long term image creation, informational, comparative, affective, reminder, new creative objectives, new unique selling proposition, new creative concepts, appeals, tone, and themes, or a new advertising agency.