The emergence of competitive markets like India, China, Brazil, etc., is unfolding potential investment and business opportunities for companies worldwide. This has also boosted the competition among firms across sectors. Consequently, there is a pressing need to adopt strategic planning to reduce investment risk and achieve long-term success in these dynamic markets.
Competitor analysis is one of the most crucial steps towards formulating business planning to enter a new market. Global market entry and expansion solutions providers can prove a great help in this regard. They help investors gather intelligence about a potential market and determine the strength and weaknesses of competing firms. This provides a distinct advantage to the new firms and enables them to maintain sustainable growth.
Let’s delve deeper!
What Exactly is Competitor Analysis for Entering new Market in India?
To state simply, competitor analysis is a detailed strategy that involves researching and understanding the major competitors in a respective sector of a market. It enables you to learn the ins and outs of how your competitors are working and identify the potential opportunities to outperform them.
Suppose you are looking to invest in the Indian market, you will need to frame an adequate India market entry strategy to gain a strong foothold over the already established companies in the sector. This is only possible with a detailed competitor analysis from reliable market research companies in India, which will offer you insights into:
- Strength and weaknesses of your competition
- Estimate of where you stand in the market
- The long and short-term objectives of your competitors
- Forecast key skills and areas to target and more.
Importance of Competitor Analysis In Market Entry Strategy
The importance of competitor analysis in market entry strategy is not just limited to leveraging upon the weaknesses or shortcomings of your competing firms. It looks beyond into a broader business landscape. For example, when you invest in India, China, or other markets, a regular competitor analysis from a global market entry and expansion solutions provider will offer
- Complete comprehension of the markets in terms of the customers.
- Identification of the potential threats in the business ecosystem.
- Opportunities in the long run
- Priority areas for development and improvement etc.
Things to Look At While Framing Market Entry Strategy
If you are looking forward to investing in new markets like India, you must focus on the points listed below while conducting competitor analysis.
- Product Analysis
For framing a perfect market entry strategy, you must conduct a product analysis of your competitors. Product analysis involves looking into whether your and the competitor’s products are exactly the same. It helps you identify if their products have USPs over yours and their price positioning in the market. Furthermore, you can also get to know the keywords they use to describe their products in front of the customers.
Brand analysis of your market competitors is as crucial as that of the products. It helps you identify whether the competing firms target the same audience as yours. You can estimate their brand value with respect to yours in the market and among the targeted customers. Also, you can check their brand positioning on Google.
In fact, brand analysis can be tricky sometimes. Hence, it will be beneficial if you availed the help of specialized market research companies in India, China, Russia, or others while investing in these new markets.
A marketing analysis of your competitors will help you recognize the channels the competing firms use to market their products. In addition, it offers you insight into their social media contents, followers, and engagement.
Also, you can check the online and offline campaigns and marketing materials like blogs, podcasts, webinar they used to promote their product among the target users.
- Technological Competitiveness
While investing in new emerging economies like India, analyzing the technological competitiveness of your direct market competitors is extremely crucial. The type of technology used in manufacturing and promotion of a product determines the scope of business success.
Hence, new firms must take help from India market entry consulting to research the production architecture, statistical analysis networking, software and hardware systems, network architecture, and more, to adequately estimate their positioning in the respective sector.
Last but not least, you should focus on research and study of the end customer or user of your competitors. It will help you gauge the extent to which customers engage with their products. You will also get to know the platform they use to connect to the end customers and the solutions they are providing for their respective problems. Understanding this pointer will show the advantages you have over competing firms.
Also, it will help you determine the area where a competing firm might have the edge over your products and strategize accordingly.
Importance of India Market Entry Consulting
The Indian market is new and opens lucrative avenues for foreign businesses. This has increased investments and also boosted competition. Consequently, the market in India is extremely volatile. Firms willing to undertake investment in India, therefore, require a detailed competitor analysis for long-term success.
Market research companies in India like Tecnova help new investors with end-to-end assistance in competitor analysis. They offer services like:
- Identifying the direct and indirect competitors
- SWOT analysis of the competing firms
- Creating product profiles
- Identifying the marketing strategies
- Framing India market entry strategy and more
Entering new markets certainly seems profitable owing to the growing consumer demands and ease of doing business. However, the competition in these markets is increasing rapidly and requires a strategic approach to bring long-term growth.
Analyzing the competitor’s business models and marketing strategies will help in determining the key similarities and differences in the products and services that will share the same market. This, in turn, will ensure you strategize your business operation in a manner that will prevent you from losing a market share to the competitors.
Furthermore, since market analysis is extremely intricate, it is best to collaborate with professional global market entry and expansion solutions providers for accurate estimates and growth plans.
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