Competitive analysis

Definition

The systematic evaluation of competitors' strengths, weaknesses, strategies, and market position to inform business decisions. It involves researching rival companies to identify opportunities and threats in the marketplace.

Etymology

This term gained prominence in the 1980s with the rise of strategic management consulting, particularly through Michael Porter's work on competitive strategy. 'Competitive' stems from Latin 'competere' meaning to strive together, while 'analysis' comes from Greek 'analyein' meaning to break up or examine in detail.

Kelly Says

Competitive analysis has become so sophisticated that companies now employ former employees of rivals and use AI to scrape competitor websites for pricing data in real-time. The practice has ancient roots - Sun Tzu's 'Art of War' emphasized knowing your enemy, making this perhaps the oldest business strategy concept still in active use today.

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