Competitive monitoring is an essential practice for companies seeking to maintain and improve their market position. Although competition is often consider to be link only to obtaining customer preference. There are multiple reasons to “keep an eye on” competitors. Asince their systematic analysis not only allows anticipating market movements, but also adjusting strategies to maintain a competitive advantage. According to Porter (1980), competition in an industry depends on the forces that shape its structure, so monitoring competitors allows a better understanding of these dynamics and strategic positioning.
Key reasons to monitor the competition
1. Identifying opportunities and threats
A thorough analysis of the competition not only facilitates the detection of potential threats, but also identifies untapp market opportunities. According to Grant (2016), assessing the competition allows companies to anticipate vietnam phone number library changes in the business environment, helping to mitigate risks and capitalize on new opportunities.
2. Developing effective strategies
Understanding competitors’ strengths and weaknesses provides valuable information for differentiation. By analyzing competitive tactics, strategies can be develop that offer unique value to customers, as mention by Barney (1991) in his study on organizational resources and capabilities.
Improv decision-making
The systematic collection of competitive data provides an objective basis for decision-making. From pricing to expansion strategy, having information on competitors allows for a more accurate assessment of the risks associat with each decision (Aaker, 2014).
4. Understanding customer preferences
Observing competitor performance also provides insight into customer expectations. According to Kotler and Keller (2016), companies the power of content marketing in pr that adjust their products and services to better satisfy consumers, using information about how competitors are responding to these expectations, achieve greater customer loyalty.
5. Evaluating market position
Regular comparison with competitors helps to identify areas for improvement and assess the company’s relative position in the cg leads market. Johnson, Scholes and Whittington (2008) highlight that continuous analysis of competitors is crucial to adapt to changes in the environment and maintain a sustainable competitive advantage.