What is a competitor analysis?

Competitor analysis is fundamentally about understanding the strengths and weaknesses of rival businesses within the same market. This involves researching competitors' products or services, market position, strategic initiatives, pricing strategies, and customer reviews. By conducting a thorough evaluation, businesses can identify areas where they can differentiate themselves, exploit market gaps, and formulate strategies to gain a competitive advantage. This strategic overview is crucial for positioning a business effectively and anticipating competitors' moves, thereby informing future business decisions.

The other options, while important in their own contexts, do not encapsulate what a competitor analysis entails. Customer satisfaction surveys focus on understanding consumer perceptions and experiences rather than evaluating competitors. The analysis of market trends looks at overarching patterns in the industry rather than direct competitor performance. Lastly, enhancing product features based on customer feedback is about product development and improvement rather than competitive evaluation.