Determine what products your competitors offer
Posted: Sun Dec 15, 2024 7:02 am
The final step in a competitive product analysis is to look for gaps in the market that can help your company get ahead. When it comes to the console market, one potential opportunity that is gaining traction is the delivery of games through cloud-based services rather than physical hardware. Companies like Nvidia and Google have already made inroads into this space, and if they can overcome bandwidth and latency issues, they could change the market on a massive scale.
Competitive analysis example
How do you compare to your competition? How are you similar and how are you advertising database different? This is the goal of competitive analysis. By understanding where your brand and your competitors overlap and diverge, you will be better positioned to make strategic decisions that can help grow your brand.
Of course, it’s one thing to understand the benefits of competitive analysis, and another to conduct an analysis that produces actionable results. Don’t worry, for better understanding, we’ve provided a quick example.
Sony vs. Nintendo: It's not all fun and games
Let’s take a look at popular gaming system companies Sony and Nintendo. Sony’s newest offering, the Playstation 5, recently hit the market but has been plagued by supply shortages. Meanwhile, Nintendo’s Switch console has been around for several years but remains a steady seller, especially among teens and children. This scenario is familiar to many companies on both sides of the coin; some have introduced new products designed to compete with established market leaders, while others are looking to ensure that reliable sales don’t fall off.
Using some of the steps listed above, here’s an example of a quick competitive analysis.
1. Determine who your competitors are
In our example, it’s Sony vs Nintendo, but it’s also worth considering Microsoft’s Xbox, which occupies the same general market vertical. This is critical for effective analysis; even if you focus on specific competitors and how they compare, it’s worth considering other similar market offerings.
Playstation offers two versions of the PS5, digital and standard, at different price points, while Nintendo offers three versions of its console. Both companies also sell peripherals; for example, Sony sells virtual reality (VR) add-ons, while Nintendo sells gaming peripherals such as steering wheels, tennis rackets, and different controller configurations.
3. Research your competitors' sales tactics and results
When it comes to sales and marketing tactics, Sony and Nintendo have very different approaches.
Thanks in part to the recent semiconductor shortage, Sony has increased demand through scarcity — very low volumes of PS5 consoles remain available. Meanwhile, Nintendo has taken a broader approach by focusing on families as its primary customer base. This effort is bolstered by the Switch Lite product line, which is smaller and cheaper, making it a popular choice for kids.
The numbers tell the story : as of September 2021, Nintendo has sold 14.3 million consoles, while Sony has sold 7.8 million.
4. Take a look at your competitors' prices, as well as the advantages they offer
Sony has the highest price point: its standard PS5 sells for $499, while Nintendo’s most expensive offering is priced at $349. Both offer robust digital marketplaces and the ability to easily download new games or services.
Here, the key differentiators are flexibility and fidelity. The Switch is flexible: users can dock it to their TV and play it like a standard console, or pick it up and take it anywhere as a portable gaming system. Meanwhile, the PS5 has superior graphics hardware and processing power for gamers who want the highest fidelity experience.
5. Analyze how your competitors market their products
If we compare the marketing efforts of Nintendo and Sony, the difference is immediately apparent: Sony’s ads feature realistic in-game visuals and speak to the exclusive nature of its gaming titles; the company has managed to secure deals with several high-profile game developers to gain exclusive access to new and existing IP.
Meanwhile, Nintendo uses brightly lit ads that show happy families playing games together or children using their smaller Switches while on the go.
6. Analyze the level of engagement on your competitor’s content.
Engagement helps drive sales and encourages repeat purchases. While there are several ways to measure it, social media is one of the simplest: generally, more followers equals more engagement and greater market impact.
When it comes to our example, Sony enjoys a significant lead over Nintendo: while the official Playstation Facebook page has 38 million followers, Nintendo has just 5 million.
Competitive analysis example
How do you compare to your competition? How are you similar and how are you advertising database different? This is the goal of competitive analysis. By understanding where your brand and your competitors overlap and diverge, you will be better positioned to make strategic decisions that can help grow your brand.
Of course, it’s one thing to understand the benefits of competitive analysis, and another to conduct an analysis that produces actionable results. Don’t worry, for better understanding, we’ve provided a quick example.
Sony vs. Nintendo: It's not all fun and games
Let’s take a look at popular gaming system companies Sony and Nintendo. Sony’s newest offering, the Playstation 5, recently hit the market but has been plagued by supply shortages. Meanwhile, Nintendo’s Switch console has been around for several years but remains a steady seller, especially among teens and children. This scenario is familiar to many companies on both sides of the coin; some have introduced new products designed to compete with established market leaders, while others are looking to ensure that reliable sales don’t fall off.
Using some of the steps listed above, here’s an example of a quick competitive analysis.
1. Determine who your competitors are
In our example, it’s Sony vs Nintendo, but it’s also worth considering Microsoft’s Xbox, which occupies the same general market vertical. This is critical for effective analysis; even if you focus on specific competitors and how they compare, it’s worth considering other similar market offerings.
Playstation offers two versions of the PS5, digital and standard, at different price points, while Nintendo offers three versions of its console. Both companies also sell peripherals; for example, Sony sells virtual reality (VR) add-ons, while Nintendo sells gaming peripherals such as steering wheels, tennis rackets, and different controller configurations.
3. Research your competitors' sales tactics and results
When it comes to sales and marketing tactics, Sony and Nintendo have very different approaches.
Thanks in part to the recent semiconductor shortage, Sony has increased demand through scarcity — very low volumes of PS5 consoles remain available. Meanwhile, Nintendo has taken a broader approach by focusing on families as its primary customer base. This effort is bolstered by the Switch Lite product line, which is smaller and cheaper, making it a popular choice for kids.
The numbers tell the story : as of September 2021, Nintendo has sold 14.3 million consoles, while Sony has sold 7.8 million.
4. Take a look at your competitors' prices, as well as the advantages they offer
Sony has the highest price point: its standard PS5 sells for $499, while Nintendo’s most expensive offering is priced at $349. Both offer robust digital marketplaces and the ability to easily download new games or services.
Here, the key differentiators are flexibility and fidelity. The Switch is flexible: users can dock it to their TV and play it like a standard console, or pick it up and take it anywhere as a portable gaming system. Meanwhile, the PS5 has superior graphics hardware and processing power for gamers who want the highest fidelity experience.
5. Analyze how your competitors market their products
If we compare the marketing efforts of Nintendo and Sony, the difference is immediately apparent: Sony’s ads feature realistic in-game visuals and speak to the exclusive nature of its gaming titles; the company has managed to secure deals with several high-profile game developers to gain exclusive access to new and existing IP.
Meanwhile, Nintendo uses brightly lit ads that show happy families playing games together or children using their smaller Switches while on the go.
6. Analyze the level of engagement on your competitor’s content.
Engagement helps drive sales and encourages repeat purchases. While there are several ways to measure it, social media is one of the simplest: generally, more followers equals more engagement and greater market impact.
When it comes to our example, Sony enjoys a significant lead over Nintendo: while the official Playstation Facebook page has 38 million followers, Nintendo has just 5 million.