Mastering Competitive Analysis: How to Evaluate a Company's Competitiveness

by Alice Wilson Professional Writer

Are you ready to unlock the secrets of gaining a competitive edge in today's cutthroat business world? Look no further, because we're about to dive into the fascinating realm of competitive analysis!

Whether you're an entrepreneur looking to launch your own venture or an executive striving for growth and success, understanding How to Evaluate a Company and its competitiveness is absolutely crucial.

In this blog post, we'll equip you with all the tools and strategies needed to master this essential skill. Get ready to conquer your industry as we unravel the mysteries behind evaluating competitors and uncover valuable insights that can propel your business towards unparalleled success.

Let's begin our journey into the world of mastering competitive analysis!

Analysing a Company’s Resources and Capabilities

A company's resources and capabilities are the foundation of its competitiveness. By analysing a company's resources and capabilities, you can gain insights into its competitive strengths and weaknesses.

There are many ways to evaluate a company and its resources and capabilities. One approach is to use a resource-based view of the firm. This approach focuses on the unique resources and capabilities that a company possesses, and how they can be used to create a competitive advantage.

Another approach is to use a value chain analysis. This approach looks at the different activities that a company performs, and how they contribute to the creation of value for the customer.

Still, another approach is to use an industry structure analysis which helps in Mergers And Acquisitions. This approach assesses the relative attractiveness of an industry based on its profitability and growth potential.

No matter which approach you use, there are certain key questions that you should always keep in mind when analysing a company's resources and capabilities:

What are the key resources and capabilities that the company possesses? How were they acquired? How important are they to the company's success?

Can the company sustain its competitive advantages? Are they durable or fleeting? What might cause them to disappear?

What is the company's cost structure? How do its costs compare with those of its competitors? What are the implications for profitability?

Identifying a Company’s Strengths and Weaknesses

In order to complete a competitive analysis, you must first identify a company’s strengths and weaknesses. This can be accomplished by considering the following:

-What does the company do well?

-What could the company improve upon?

-What are the company’s unique selling points?

-How does the company compare to its competitors?

By considering these factors, you will be able to get a better understanding of a company’s competitiveness.

Benchmarking Against Competitors

A company's competitiveness can be benchmarked against its competitors in a number of ways. The most common method is to compare the company's financial performance, including measures such as profitability, revenue growth, and market share. Other important factors to consider include the company's competitive advantages and disadvantages, its strengths and weaknesses, and its position in the industry value chain.

Comparing a company's financial performance against its competitors is a good way to get an overall sense of its competitiveness. However, it is important to remember that there are other factors that contribute to a company's competitiveness besides financials.

For example, a company might have a strong brand or a unique product offering that gives it an advantage over its competitors. Additionally, a company's competitive position in the industry value chain (e.g., upstream vs. downstream) can also impact its competitiveness.

To get a comprehensive picture of a company's competitiveness, it is therefore important to consider multiple factors. Financial performance is certainly one important metric, but it should not be the only one used to benchmark against competitors.


Understanding how to use competitive analysis is an important skill for any business professional. With the right strategies and tools, you can assess a company’s competitiveness in relation to its competitors and make informed decisions that will impact both short-term and long-term success. While you’re up to evaluate a company Becoming competent with competitive analysis can help employers gain insight into their industry, recognise potential risks or opportunities, stay ahead of the competition, and make better strategic decisions overall.

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About Alice Wilson Senior     Professional Writer

132 connections, 12 recommendations, 777 honor points.
Joined APSense since, March 19th, 2021, From Melbourne, Australia.

Created on Aug 8th 2023 00:43. Viewed 187 times.


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