Industrial Business

B2B competitive analysis in the industrial business

Considering that one of the primary factors that form the market is competitors, B2B competitive analysis is so imperative.

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When it comes to business-to-business marketing, organizations often prioritize understanding their target demographic and perform considerable research to accomplish this. While this is an essential component of your overall marketing plan, with such a strong emphasis on the customer, it’s easy to underestimate B2B competitive analysis. All too frequently, we overlook the distinct techniques of competing organizations in our niche.

If you are just focused on the internal operations of your organization without considering the external environment, you are missing a critical opportunity to develop your B2B marketing strategy. The data your organization can glean from a B2B competitor analysis is priceless, and fortunately, the process does not have to be as onerous as it may look at first glance.

According to business practices, B2B competitive analysis is the responsibility of both marketing experts, and sales executives. Knowledge is the most effective weapon of an industrial sales executive, as I always mention. Considering that one of the primary factors that form the market is competitors, competitive assessment is so imperative.

competitor analysis matrix

The importance of competitor analysis

If you are not paying attention to what your competitors are doing, this question will certainly be tough to answer. As we all know, differentiating your products and providing a unique value is critical for any B2B business to acquire and retain customers.

However, a well-designed B2B competitive analysis model goes well beyond assisting your business in establishing a distinct point of differentiation and unique selling proposition.

By being informed about your competitors’ activities, whether on social media, their website, or elsewhere, you can receive motivation and guidance for your short and long term competition strategies. This entails observing and benefiting from what market leaders do well, while also avoiding your competitor’s missteps and thoroughly investigating what happened to them.

Additionally, by continuously monitoring your competitors’ activity, you’ll be better positioned to keep ahead of the curve. This means that over time, your B2B organization will be able to make accurate guesses about your competitor’s upcoming steps, effectively anticipating their activities. By implementing B2B competitive analysis methods, you may keep one step ahead of the competition in your industry, providing you a competitive edge.

Each of the abovementioned will ultimately assist your company in developing amazingly strong and strategic B2B competitive analysis, all while meeting and, preferably, exceeding your organization’s objectives.

Advantages of B2B competitive analysis

The better you conduct a B2B competitive analysis in your target market, the better you understand the current market situation. The reason customers prefer a seller company is the characteristics that make that company superior to its competitors.

While making a competitor assessment, you can see your own company’s strengths, weaknesses, and position in the market more clearly.

The best way to identify what makes you different is to determine what your competitors are not. Once you understand your competitors’ operating methods and market position, you can plan and execute your marketing and sales strategies more precisely.

The true path to see any industry’s general situation is an efficient B2B competitive analysis. I recommend you follow those two steps.

how to research competitors

Identify your competitors

Start your B2B competitive analysis with your major competing companies. Now consider your customers’ problems or needs. Which companies do they apply other than you to solve their problems or meet their needs? If you identify at least three more companies, it means that you can build a competitor company profile. Consider it like generating an ICP —Ideal Customer Profile—, but this time you are profiling your competitors.

Competitors in your target market;

  • What are the unique features of the products and services they offer to customers? In what ways do they add value to their customers?
  • What do you know about their pricing policies? How would you compare the price/value ratio of your products and services with yours?
  • Do they have a company culture? What are their “actual” values and mission? How are the general behavioral attitudes of their employees, especially sales teams?
  • What is the level of their brand value in the market? How many years of history do they have in the market?
  • What do the customers think about them? What is the general opinion about them?

Be objective when conducting a B2B competitive analysis

The questions above will help you form a general profile of your competitors. The efficiency of B2B competitor analysis also depends on how objective you are. While examining your competitors, show ultimate attention not to see them as an enemy but as your colleagues. In this way, you will obtain a genuinely objective and impartial assessment.

B2B competitor comparison

Discover strengths and weaknesses of your competitors

Understanding the competing companies during B2B competitive analysis helps you to realize what differentiates your company and products. Examine the features that make you preferable against your competitors.

What are the reasons your customers choose you? Your way of working? Your professional and personal relationships? Are your products so great? Or are your prices too low?

As you examine your competitors, you will see their advantages and disadvantages more clearly. In this phase, you may need to study different examples of competitive analysis. Whether it is an advantage or a disadvantage, knowing the areas where you stand out from your competitors will always take you one step ahead of the competition.

how to do B2B competitive analysis?

Realizing a B2B competitor analysis

Now, think about each of your major competitors.

  • How much was the company’s turnover last year?
  • What are the best-selling popular product groups?
  • Which companies are the biggest customers?
  • How many people are working in the company?
  • What are the technical features of the products or services they sell? (Very important!)
  • Who are the top executives of the company? How much experience do they have?
  • Do they use content marketing on their websites? What are the differences between their website and yours?
  • How do you compare their catalogs and technical data sheets to yours?

 

Answer these questions with correct and objective information for at least three of your competitors. You won’t believe how B2B competitive analysis positively contributes to your market intelligence and perspective! Now you know about both your market situation and competing activities. This information will help you too much when it’s time to approach the leads.

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