What is the first step in conducting a competitive analysis?

The first step in conducting a competitive analysis is to identify competitors. This step is crucial because understanding who the competitors are sets the foundation for all subsequent analysis. By identifying competitors, a business can determine which companies are in the same market space and are vying for the same customer base.

Once the competitors are identified, the organization can gather information on these companies, such as their market share, business strategies, strengths, and weaknesses. This identification process also helps in determining which aspects to evaluate further, such as product offerings, sales processes, and ultimately performing a SWOT analysis. Knowing the identity of competitors ensures that the analysis is relevant and focused on the right players in the market, making it a fundamental first step in a comprehensive competitive analysis.