Which method is typically used to analyze competitors in a market?

The method commonly employed to analyze competitors in a market is competitive analysis. This approach focuses specifically on assessing the strengths and weaknesses of competing firms within a particular industry. Competitive analysis involves evaluating various aspects of competitors, including their marketing strategies, product offerings, pricing, market share, and customer feedback. By understanding how competitors operate and what strategies they employ, businesses can identify opportunities to differentiate themselves and gain a competitive advantage.

While market segmentation focuses on dividing a market into distinct groups of buyers based on characteristics, and target audience analysis involves understanding the specific demographics and preferences of potential customers, these methods do not specifically address competitors. SWOT analysis, which assesses internal strengths and weaknesses along with external opportunities and threats, can include competitor information as part of the external threats but is broader in scope and not solely focused on competitor evaluation. Therefore, competitive analysis remains the most relevant method for directly understanding and strategically responding to competitors in the marketplace.