Competitive analysis is a good way to help you understand your current state relative to the industry. As a business owner, you want to be clear of your industry landscape, competitors, buyers and the nuances of the industry. You want clarity of the environment so you can better plan how to innovate and tackle the competition.

While SWOT analysis focuses on internal factors such as strengths, weaknesses, opportunities, and threats, Porter's Five Forces analysis provides a framework for analyzing the competitive forces that shape an industry and assesses the attractiveness and profitability of that industry. By examining the bargaining power of buyers and suppliers, the threat of new entrants, the threat of substitute products or services, and the intensity of competitive rivalry, Porter's Five Forces analysis provides valuable insights for understanding the competitive landscape

Before you begin the analysis, you want to set the deliverables of the competitive analysis. There are usually two approaches to consider: Option 1: Conduct it using internal resources For this option, consider the availability of your team members and whether they have the right skill sets to achieve the depth of the analysis. Option 2: Hire an external consultant to conduct the analysis For this option, be clear of the deliverables and the roles and responsibilities of the consultant and your team.

Identify Competitors: Begin by identifying direct and indirect competitors in your industry or market segment. Gather Information: Collect data on competitors' products, pricing strategies, marketing tactics, customer base, distribution channels, and financial performance. Analyze Data: Evaluate the collected information to identify trends, patterns, and areas of competitive advantage or vulnerability. SWOT Analysis: Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for each competitor to gain deeper insights. Benchmarking: Compare your own performance against that of competitors to identify gaps and areas for improvement.

A análise competitiva para impulsionar a inovação deve ser orientada pelas necessidades específicas da persona alvo do produto. Se a solução proposta atender plenamente a essas necessidades, é crucial adaptá-la para otimizar seu potencial e abordar de maneira abrangente outros desafios enfrentados pela mesma persona. Essa abordagem não só garante a eficácia imediata da inovação, mas também a flexibilidade necessária para lidar com possíveis mudanças nas necessidades ao longo do tempo, proporcionando uma resposta abrangente e adaptativa para resolver tanto as demandas originais quanto questões adicionais da persona.

Benchmarking against companies in diverse sectors can reveal innovative practices and technologies that may be adapted to your own field. It's not just about who your direct competitors are, but also about who is excelling in areas you wish to improve or innovate in. Look beyond your industry to find inspiration and strategies that could be transformative when applied to your context.

One way is to align your goals with the United Nations Sustainable Development Goals (SDGs) which involves understanding the relevant SDGs, and identifying how your products can contribute to those goals, setting targets to measure progress, and effectively communicating your alignment to stakeholders ensuring your vision is clearly articulated. This will help you demonstrate your commitment to sustainability and social responsibility, while also differentiating yourself in the market through innovation, delivering products and services to help shape a better world and future.

Competitive analysis is useful. Yet, the true value in innovation comes from tackling an unsolved problem. It's easy to see what competitors are doing. Harder to see the things they are not. So ask yourself - "what are we missing here?". Talk to customers, be curious. It's not that competitive analysis isn't useful, just be mindful of its limitations.