How to analyze market competition

How to analyze market competition? Competition is a necessary means of social development. We can see the competition of the jungle or self-elimination everywhere, and the backward people will only be abandoned by the trend of the times. Let's share how to analyze market competition.

How to analyze market competition 1 There are generally three situations about market competition analysis:

Whether the target group is consistent; Whether the company has advantages (early advantages/late advantages); Cross-industry competitors.

First, are the target groups consistent?

Target group and market, different target groups will decide which business model the company will enter.

For example, students studying at school and students studying outside school, the former company will use online learning platform and offline teaching tools to mix teaching resources, while most companies will directly use tutoring services to cut into the target group of students studying outside school.

In the eyes of most people, the above examples seem to be different solutions of the same target group in different environments, but there is no analysis of the more essential factors. "What caused two different scenarios?" It can be found that the learning level of students and the teaching level of schools will determine which scenario students appear in.

Similarly, according to the above two levels, many different student groups and many different target groups can be divided, which is the division of target market.

Of course, if we subdivide it, we can find the factors that affect students' learning level and school teaching level, such as students' learning attitude, students' learning ability and economic development in the area where the school is located. The market is not subdivided to this extent, so we don't do in-depth analysis at present.

The concept of subdivision is a basic analytical concept in the digital age.

But subdivision is not a good thing. What you see will make you. If you always look at new things on the basis of the present, you will always be you, not you with more possibilities. I won't start here, and there will be an analysis of "mourning in the personalized era" in the future.

Second, does the company have an advantage?

Determine the target group, and then analyze whether the company can stand out in the market. The following five factors are the key to determine whether the company can stand out:

Capital: capital, personnel and technology; Brand: market visibility in related fields; Channel: the ability to reach users; After-sales: the ability to continuously serve users; Corporate culture: a culture of cohesion.

1, in capital

Capital determines the company's endurance in the market competition. It constantly puts into the market, research and development, and product update iterations until most competitors are exhausted.

2. Brand

The brand determines whether the user will buy it. A good brand is the basis for users to buy. I don't think anyone will buy Sanlu milk powder now At the same time, the closer the brand is to the user, the higher the user's recognition of the brand will be, and the user will be more inclined to the brand when making decisions.

3. Channel

The channel determines the ability to reach users. Whether online or offline, the ability of the channel directly determines whether the product can reach the right users, establish a continuous positive connection with users, collect correct user feedback, and support product optimization.

4. After-sales service

Service that makes customers feel warm.

After-sales here, we must dare to break up. If our products bring troubles to users, we must be brave enough to take responsibility. Making mistakes is not terrible. Terrible is that because of the existence of certain interests, making mistakes is an attitude, and giving up sunk costs is an improvement.

5. Corporate culture

Corporate culture is great. What really determines how far an enterprise can go is not capital, brand, channel and after-sales, but corporate culture.

Enterprises can take brands, create brands, expand channels and improve after-sales service, because these all need people to do, "need people to do well."

Third, cross-industry competitors

Cross-industry competitors are terrible, such as BATJMD. They have capital and can reduce the dimension of any industry. Any company has to consider the influence of their entry into its own field and make corresponding plans as soon as possible.

However, in most cases, use PK to get rid of opponents, and then wait for the years.

How to analyze the hypothesis of market competition 2 1 and perfect competition

The assumptions of western economics are rough, and a considerable part of them are unrealistic. For example, the assumption of a perfectly competitive market refers to a perfectly competitive market structure without any obstacles or interference. In this market type, there are many buyers and sellers, both of whom are price recipients, resources can flow freely and information is complete. If such a theory is only constructed as a theory, it is understandable. But the key point is that many scholars mistakenly use these rough theories to understand and predict the economic operation in the real world, and even use these simplified theories to cover up the actual inequality in the market.

Extreme neoliberalism even thinks that there is no market monopoly at all, and all market participants face the same degree of competition. Traditional economics thinks that there is market monopoly, but the analysis is too rough. The reality is that different market positions face different fierce competition. If you want to quantify, the degree of competition can be divided into-100 and 100, from the least intense to the most intense.

2. The most competitive market: take farmers as an example.

Farmers at the bottom are actually facing the fiercest competition, and the fiercest degree of agricultural competition can be quantified as 100. Because there are 900 million farmers in China, every farmer basically faces such great competition (900 million-1). Under such fierce competition, farmers' income will be very low. So, how can we increase farmers' income? One way is to operate modern agriculture on a large scale, but this is no longer a farmer, but a farmer. Another feasible way is to establish rural cooperatives and improve bargaining power. Natural agriculture can be decentralized, but it needs centralized bargaining and distribution.

In fact, the market price is related to the bargaining power of both parties (including economic strength, production scale, market share and other factors). The same agricultural products, if sold by farmers themselves, will be the cheapest, if sold by rural cooperatives, it will be more expensive, and if sold by rural monopoly organizations, sky-high prices may also be possible. This observation can be studied through experience. In the purchase transaction of large supermarkets, it can be found that if the transaction is organized by industry, the price will be more expensive. The price will be cheaper if it is traded by individual companies.

3. The most monopolized market: take international finance as an example.

The top elites actually face less competition. Especially the monopoly class, they face the least competition, and the degree of the least competition in monopoly can be quantified as-100. In trading, monopolists have very strong pricing power. Winners in the market tend to monopolize easily.

For example, in the international financial market, the financial competition between countries is similar to the competition among companies within a country. The United States has the strength of financial monopoly in the world, and the dollar is a monopoly currency, which can collect coins from all countries in the world. At the same time, the US dollar is the settlement currency for oil trading and gold trading. When the global economy takes off, all countries need US dollars, and when they want to buy gold to avoid risks during the global economic crisis, all countries also need US dollars. Therefore, in the international financial market, the status of countries is actually very unequal. When a financial crisis occurs, the debt of each country will drop first, the bankrupt high-quality enterprises in this country will be bought by the United States at a low price, and the capital of this country will also flow out quickly, usually to the United States. If everyone buys gold as a safe haven, the dollar is the settlement currency, which will also push up the dollar. Because the dollar is the monopoly currency in the world, even if it falls, the United States will be the last to fall. So international finance has always been an unequal game. Latin American financial crisis, Asian financial crisis ... the interests of emerging economies in the world have been damaged, but American finance has benefited from it, and even acquired and controlled important enterprises in other countries.

In the international financial market, there is also a lack of binding force of the rule of law. Whoever dares to challenge the hegemonic position of the dollar will be challenged by the United States. Originally, the euro could challenge the hegemony of the dollar, but now the euro has experienced the impact of the Greek debt crisis and Britain's withdrawal from the European Union, and it has been unable to compete with the dollar. The Greek debt crisis is actually a time bomb planted by the United States in the euro zone. In the future, the rise of China and RMB is an important variable. However, challenges remain. AIIB headed by China was strongly obstructed by the US government. In the first half of this year, the South China Sea crisis created by the U.S. government was also aimed at undermining the confidence of the outside world in China, thus undermining the credit of the RMB. Of course, in the short term, the RMB is unable to impact the US dollar. At least for a period of time, American finance will remain a monopolist in the international financial market. "The world has suffered for a long time and is beautiful."

How to analyze market competition 3 i. Market structure

1, market capacity and pattern

What is the capacity of the whole market at present, and what is the competitive pattern? In more mature business areas, major analysis institutions will have professional consulting reports for reference, which will help us to obtain the overall overview information. However, if our business field is just emerging, it will not be so easy to see the market pattern clearly. For example, SaaS in various vertical industries.

From the perspective of the author's field, players have entered one after another in 20 14 years, all of which are emerging startups. It was not until the beginning of 20 16 that several giants began to lay out. Moreover, the development trend of mobile internet and the external investment and financing environment have had a great impact on this field.

But this does not affect our judgment on the overall trend, such as how big the whole plate is, who is the main force and how to deal with it, which are the basis of our business development.

2. Potential growth market

The rise of' internet thinking' in recent years has told us countless stories about how to start small, how to make small and how to make big, and how to achieve it in quantity. But all stories will return to the commercial value itself. If the current market capacity of the business field has a ceiling, where will the products and companies go next? We can look at what the potential growth market is and how competitors are laid out in these places.

For example, the layout of a push service company after the C round is worth pondering. Another example is 360, including antivirus, security guards, browsers and advertising game hardware.

3, the main competitors competitiveness evaluation

The evaluation of competitors' competitiveness here is more about the evaluation of competitors' companies. It can be analyzed by management models such as Porter's Five Forces. Please refer to management books for specific practices.

Second, products and solutions.

1, competitor organization structure

We can first understand the organizational structure of our competitors. Who is the management, and what is their background and ability? This is known from public information and industry word of mouth. There are also the organizational structure and number of people in the departments of products, technology, marketing and sales. As long as you do your homework, you can get it, such as industry news and recruitment information.

2. The position of the product in the competition.

This is more difficult. It needs to cross-analyze all kinds of intelligence information, and then make empirical inference. Take the business of the author company as an example. At the beginning of the year, when we analyzed competing products, we also accepted a large domestic Internet company as a competitor, but they did not launch a direct target product. However, the author learned from a certain channel that a similar project has been hatched internally, and the underlying technology of the company's current commercial products can be used for research and development and our benchmark products. Later, at the end of this year, the company launched related commercial competing products. Many of the incubation projects of large companies are for the purpose of testing water or enriching the product matrix, unlike startups that focus on one or two products, which are supported by resources.

3, product positioning and target customer segmentation

Even if it is a completely targeted product, the product positioning and target users are different because of the different resources and capabilities of different opponents. For example, several mature data analysis tools popular in the market at present. A focuses on no buried point, with high customer unit price, mainly for large and medium-sized customers. B focuses on privatization deployment, with high cost performance, and is also a large and medium-sized customer. C also focuses on no buried point, low price, mainly for small and medium-sized customers. Positioning and target users will determine the marketing, service and sales strategies of competitors.

4. Analysis of solutions and core technologies

This is the most discussed competitive analysis in other articles. The difficulty here lies in the acquisition of information. The acquisition of enterprise products is not as easy as consumer products, especially some privatized software products. Get product introduction, technical white paper, competing product trial, competing product customer feedback, industry meeting, resigned employees, etc. From various public and private sources. It's easier said than done, and it involves a lot of gray scales, so I won't say it.

5, official website, user background product analysis

Background information about official website and users is relatively easy to obtain. This can reflect the strength of competitors from the side. We can mainly look at the following aspects: functional structure, information architecture and user experience.

Third, marketing strategy.

Generally speaking, large factories have strong financial resources and push new products high above them. For example, a large factory promoted cloud services this year. Since it has been slower than other companies to enter this field, it launched several products from the level close to customers' business. First of all, several products were tested and inspected for one year. Then integrate into a brand at the right time, with the endorsement of the company's brand, make a collective voice in major scientific and technological media channels and offline exhibitions, and combine KOL to expand the brand influence in various products and technology circles.

In terms of advertising and SEM, take the results as the center, buy out a large number of keywords and major advertising spaces, strengthen data monitoring, and continuously optimize advertising.

Relatively speaking, the marketing means and resources of startups are much less. Generally speaking, it is necessary to monitor marketing strategies such as competitive advertising, SEM, exhibition and PR.

Fourth, service strategy.

Service level is an important factor to consider the business ability of an enterprise service product supplier. Although most enterprise service providers are printed with the words "7*24", in fact, it is not easy to start.

The internal service resources and processes of competing products may not be easy to obtain, but we can realize the quality of docking service personnel from the process of trying competing products.

Such as the convenience of obtaining service support, the responsiveness of solving problems, the completeness and readability of technical support documents, etc.

Verb (abbreviation for verb) sales and customer relationship

What needs to be evaluated are competitive sales organization, strategy and customer relationship, price system and channel strategy. Some companies are good at product technology, while others are good at sales and customer relations. In the circle of Internet enterprise services, many people come from traditional software or hardware equipment manufacturers. Then their company will more or less lay the mark of these experiences.