Competitive analysis is found in every industry, and guides the owner in identifying which of his products are strong and which are weak. This is in connection with the comparison between the product of a competitor and your own product, which then becomes a competitive framework. A competitive framework compares the data of both the products in a simple manner and across various criteria.
Creating a competitive analysis involves a lot of preparation. For document preparation a decision has to be made whether the document would be in table form or in text form. The difficult task is setting up the boundaries for the definition of a task. The data gathering is straightforward but time-consuming. It could be more straightforward if the purpose is identified beforehand. A team brainstorming session would be conducted. This brings out what you want to get from the analysis. A good brainstorming session influences the team to define a research agenda.
Competitive analysis comprises a statement of the purpose, the framework, which consists of the criteria and the competitors, and the data itself. There are different layers in the analysis to further flesh out the document. The first layer provides details on how to approach the analysis. These details include the purpose of the examination, the objective of course is very important, the data to be analyzed and the evaluation. The data must be meaningful. A kind of backdrop is included. Along with the backdrop, comes the competitive framework.
To be competitive, even the simplest analysis displays two significant dimensions: the competitors and the criteria. In the study of competitive analysis, this dimension is called the competitive framework. The framework has also its purpose: to present the data in its easiest form in order to compare the different sites across the various criteria. When a table is formed during the preparation of the competitive framework, the criteria falls along the side of the table while the competitors run the length of the top. The criteria can change from the very specific to the very general.
The result of the analysis must be documented as a conclusion no matter how few your data would be. The conclusion is important for an analysis so that the client would understand. It is up to your interpretation to let the clients read what you want them to understand. Your conclusion is drawing the partial direction of your design. The design team would rely on the conclusions that you attached to the competitive analysis framework.
Depending on how you organize and write your competitive analysis, if it is too broad it would possibly lack concentration. As you expand the research for your analysis, either by adding more competitors or more criteria, the more you wanted to know why you are doing the analysis. When a clearly stated purpose is included in the paper itself, it is a reminder that helps the audience of the document in understanding the framework for the analysis. You may be obliged to write a detailed business plan, but competitive analysis is still important.