The UAE has a highly competitive business environment, and enterprises must bring their A-game to survive and outperform their competitors. Businesses looking for a welcoming environment to develop and build their brand have found considerable attraction in the quick pace of technological advancement. However, given the abundance of companies, you cannot afford to overlook your competitors.

This article explores different frameworks for evaluating your rivals’ actions to guarantee your position at the top of the UAE market. 

What is Competitor Analysis Framework?

A competitor analysis framework is a tool an organization can use to create a visual structure for comparative analysis. The framework compares your strengths, weaknesses, strategies, and other relevant differences against your competitors’ to derive a comprehensive, in-depth insight into their business. Thus, you can find opportunities and leverage the information to grow.

Difference Between Benchmarking and Competitor Analysis Framework

Competitor analysis and competitor benchmarking are often confused. However, they are different concepts. A competitor analysis framework enables you to conduct an in-depth analysis of every move your competitor makes to understand their strengths and weaknesses and improve your business strategy.

On the other hand, the competitor benchmarking framework studies the business process to understand how it measures against industry leaders to identify areas of improvement and develop best practices for the business.

Thus, the difference between competitor analysis and benchmarking is that the latter concentrates on understanding your rivals’ tactics, whereas the former gauges your company’s progress.

Benefits of Using a Competitive Analysis Framework

There are various advantages to analyzing your rivals’ strategies. They include:

Identify Market Gaps

It helps you discover gaps you can fill by creating a new product or service or improving your existing offering.

Create an Effective Marketing Strategy

Understanding your competitors’ marketing strategy enables you to map out areas for improvement to create a better plan.

Find Market Trend

Some frameworks help you understand customers’ interests and create strategies to meet the rising needs of your audience.

Data Organization

Competitor analysis frameworks enable businesses to organize relevant data for easy processing and usage.

Avoid Mistakes

You can learn from your competitors’ mistakes, preventing you from wasting time threading an unfruitful path.

Create Measurable Goals

Companies can create measurable performance goals to foster business growth using the information gathered.

Six Competitor Analysis Frameworks

1. SWOT Analysis

SWOT is a well-known framework for evaluating four key areas: strengths, weaknesses, opportunities, and threats. The SWOT analysis enables a company to identify its areas of strength and weakness, prospects, and risks, and which areas it might be able to leverage.

• Strengths: Internal factors that place your competitors ahead of yours.

• Weaknesses: Internal components hindering performance.

• Possibilities: Outside elements that would support their development.

• Threats: External challenges your business rivals must overcome.

2. Porter’s Five Forces

Michael Porter designed this structure to evaluate the elements of the market affecting a given sector.

●       Threat of New Entrants:

Examines entrance obstacles to ascertain competitor market accessibility, either easily or difficult.

●       Bargaining Power of Buyers:

Looks at how customer negotiation potential might affect price.

●       Bargaining Power of Suppliers

Evaluates how goods and services are priced under suppliers’ influence.

●       Intensity of Competitive Rivalry

Analyses the competitiveness and intensity of competition among businesses.

●       Threat of Substitutes

Thinks about the likelihood of customers picking another brand over yours.

3. 7 Marketing P’s

The seven marketing P’s expands upon the traditional 4 P’s of marketing. The framework helps a company to make sure its marketing initiatives encompass all facets of the client experience and enhance its efforts. There are seven P’s:

• Product: The provided goods or services together with their characteristics, quality, and branding.

• Price: Adds both payment conditions and discounts while deciding the pricing approach.

• Place: Distribution channels and locations.

• Promotion: Marketing and promotional strategies for products and services.

• People: Employees and customer interactions that affect the customer experience.

• Process: The steps and activities involved in developing and delivering the product to the client.

• Physical evidence includes tangible items that support the service, such as packaging and branding.

Location and means of distribution:

Product and service marketing and promotional techniques abound.

People: Customer contacts and staff members influencing the client experience

For various products, the above chart shows the relationship between market share (on the Y-axis) and market growth (on the X-axis).

Every product is represented by a bubble whose size denotes its relative significance or contribution. Bigger bubbles indicate more important goods. For instance, whilst “Product C” has a greater market share but less growth, “Product E” displays high market growth and a somewhat strong market share.

4. Growth-Share Matrix

The Growth Share Matrix was created by Boston Consulting Group (BCG). This framework categorizes a company’s product or service based on market growth rate and market share, two key factors. It benefits large organizations with various product offerings, enabling them to choose which product to invest in, develop, or divest. The four quadrants used to classify products are:

●       Stars

These are high-growth, high-market share products that need investing.

●       Cash Cows

Have low growth but high market share, generating more cash to fund other investments.

●       Question Marks

These products have high growth and low market share.

●       Pets

Low growth and low market share products. They don’t generate any returns.

Quadrant	Product Name	Market Share	Market Growth	Strategy
Stars	Product A	High	High	Invest for growth
	Product C	High	High	Continue to grow and dominate
Cash cow	Product C	High	Low	Maintain market share and grow
	Product D	High	Low	Use profits to invest in Stars
Question Marks	Product E	Low	High	Evaluate and decide whether to invest or divest
	Product F	Low	High	Invest cautiously for potential growth
Pets (Dogs)	Product G	Low	Low	Divest or reposition in the market.
	Product H	Low	Low	Minimize investments, consider exit

The above table shows how products are categorized based on their market share and market growth, with the strategy column providing an idea of what companies should do with products in each quadrant.

Strategic Group Analysis

Strategic Group Analysis categorizes companies within an industry into groups based on similar strategies, market shares, and customer bases, depending on what metric you are interested in. These strategic groups are drawn using graphs or charts to enable you to figure out areas to improve or imitate.

For example, if you discover that the top three most successful companies in your niche are all grouped into the same pricing strategy, it may be time to change your plan.

Perceptual Mapping

Perceptual mapping or position mapping is a visual tool that shows how customers perceive your company and its competitors to help you understand your market position. Plotted on a graph, companies can choose two factors to focus on when mapping: price and quality.

Frequently Asked Questions

What is a Competitor Analysis Framework?

A competitor analysis framework allows for an in-depth visual study of your rival’s strengths, weaknesses, and tactics. Using this information, companies can enhance several facets of their marketing initiatives.

What is the Difference Between Competitive Analysis and the Competitive Benchmark framework?

Competitive analysis framework provides a detailed analysis of your competitors’ every move. However, competitor benchmark analysis is more encompassing. It measures against industry leaders to find areas where you can perform better by implementing best practices.

Conclusion

Knowing the several Competitor Analysis Frameworks gives you various options when looking for ways to study your competition. Working with one or two of the structures in this article can help you analyze the marketing plans of your rivals to enhance business growth.

At Researchers, we are dedicated to helping companies reach their objectives, benchmark against competitors, and negotiate to the top of the UAE market.