What is a competitive matrix?<\/h2>\n
A competitive matrix is a visualization of your competitive analysis data or a specific aspect of it.<\/p>\n
Using a competitive matrix makes it easy to recognize competitive advantages and discover market opportunities<\/a> so you can develop or innovate products, services, and market strategies aligned with your business plan.<\/p>\n There are many types of competitive matrices \u2013 which type you choose depends on the scope of the comparison or benchmarking<\/a> and the answers you seek. The competitive analysis matrix can be a simple features comparison table, a scorecard, or a grid.<\/p>\n For a one-on-one comparison of features, listing them in a table does the job. To evaluate your position in the market, plot each relevant player in the competitive landscape<\/a> on a sophisticated grid.<\/p>\n Let\u2019s look at some common examples of popular competitive matrices and when to use them.<\/p>\n A competitive analysis matrix is a key part of your competitor analysis that involves collecting data about your competition and translating it into insights that answer your market research questions<\/a>.<\/p>\n The competitive matrix allows you to organize the data in a way that makes it easy to discover the insights you need.<\/p>\n Got a ton of randomly collected competitor data? Turn chaos into order with a competitive positioning<\/a> matrix. Or, opt for a matrix that focuses on a specific query and collects only the relevant data set.<\/p>\n Whether you start with the data or with the matrix, the tool lets you compare characteristics of competing brands in your target market<\/a> or niche and hone in on a specific angle. You can even identify less-obvious competitive advantages, detect trends<\/a>, and spot weaknesses in your competition.<\/p>\n With a competitive comparison matrix, you can:<\/p>\n These understandings enable you to:<\/p>\n To maintain your market position<\/a> and move up among the competition, you can\u2019t rely on the one initial business advantage that got you there. It\u2019s only a matter of time until someone beats you at this point, and then you\u2019re out.<\/p>\n For example, if price is your main advantage, someone will find a way to do what you do at a lower cost and charge less. If you offer a unique feature \u2013- think of Amazon\u2019s overnight delivery \u2013- competition will quickly realize your advantage and find a way to catch up. It\u2019s the nature of competition; they’re always on the lookout to match and improve what you offer.<\/p>\n A competitor analysis matrix allows you to zoom in on areas you\u2019re ahead of the competition and discover which brands are catching up and pose a threat to your market positions (and which are falling behind). Identify the areas where you can improve, detect discrepancies between demand and supply in the target market, and get ideas for something new you could offer to stay on top.<\/strong><\/p>\n You\u2019ve set your goals and collected your data for the competitive analysis<\/a>. Or maybe you\u2019ve collected competitor data without a definitive plan, but you\u2019re aware of the company\u2019s overall business goals. Now\u2019s the time to define the type of competitive landscape matrix that suits your needs.<\/p>\n Have a look at these common examples to understand the benefit of each type of matrix:<\/p>\n Hello, old faithful: SWOT analysis<\/a>. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It evaluates the most important factors for business growth. Strengths and weaknesses generally refer to self-evaluation or internal evaluation<\/a>, whereas opportunities and threats aim at identifying external factors impacting the business. Ringing any bells?<\/p>\n In many situations of life, business or non-business, we do a SWOT assessment naturally in our heads. Regardless of the goal we want to achieve \u2013 convince a friend to join an adventurous trip, win a cooking competition, or land a business deal \u2013 we need to make ourselves aware of the SWOT.<\/p>\n In a complex business environment or competitive market<\/a>, this type of analysis is beneficial when entering a new market or introducing new features, or simply as an ongoing market monitoring tool.<\/p>\n <\/p>\n This model was developed by HBU professor Michael E. Porter<\/a> and focuses on five forces that impact the level of competition in an industry<\/a>. By applying this model, you can identify profit potential and detect new lines of business. It\u2019s particularly useful when developing a go-to-market strategy for your brand.<\/p>\n These are the five forces:<\/p>\n Gartner\u2019s Magic Quadrant<\/a> provides the basis for a competitor analysis visualization in a specific market or a niche. It gauges companies according to their ability to execute and their completeness of vision. That sounds pretty abstract, but you’ll understand when you look at the grid.<\/p>\n The model divides the market into four groups: niche players, visionaries, challengers, and leaders. Leaders have an all-inclusive vision for the company and are able to execute that vision effectively. Visionaries are still at a stage where they lack the ability to carry out what they envision, and challengers have less of a vision, but are good at accomplishing their goals. By doing so, they challenge the leaders.<\/p>\n This methodology can help you identify your closest competitors and set your goals more realistically. The quadrants don’t necessarily place a value on the parameters you analyze, but rather, help you find your and other companies’ place in the grid. Not everybody needs to strive to be a market leader. Some need to remain visionaries, some challengers, and others niche players.<\/p>\n Often, you want to determine your market position in a specific area, for example, price-quality relation of traffic-engagement connection. In this case, you can create your own matrix of quadrants and position each competitor in the correct place.<\/p>\n If you\u2019re analyzing price and quality, you\u2019ll place low price and low quality on the lower left, and high price and high quality on the upper right. The other two quadrants will be low price and high quality, and high price and low quality. Still with me?<\/p>\n This type of market mapping<\/a> lets you view the market from a specific angle and as such, inspect a particular aspect. You can place any two important factors on the axis to determine how they relate: For example, the amount of traffic and conversion rate<\/a> or product range, company size, and more.<\/p>\n This matrix, also called the product portfolio matrix<\/a> as developed by the Boston Consulting Group in the 60s, focuses on the evaluation of product lines. The chart is still relevant today, and companies use it to decide where to focus their efforts and resources to stay competitive.<\/p>\n The model builds on the principle that each product has a natural life cycle and moves through several stages of potential, popularity, and profitability. Companies with a large portfolio should tap into this tool to monitor and reevaluate their product lines by dividing them into these four categories:<\/p>\n Another way to categorize competitors is by similarities in their business or marketing strategies. Compare their marketing channels, pricing policies, and target audiences<\/a> and see where you fit in. Then narrow the focus down to the companies with a similar approach to yours.<\/p>\n This gives you a more granular view of your position and lets you pinpoint your efforts where they\u2019re most needed.<\/p>\n G2 Crowd has developed a grid<\/a> similar to the four quadrants that allows companies to determine their position based on reach and customer feedback. Market presence<\/a> is measured on the vertical axis and customer satisfaction on the horizontal. The model divides the market into Niche, High Performers, Contenders, and Leaders. Similarweb is proud to feature highly on the G2 platform<\/a>.<\/p>\n![\"competitive](\"https:\/\/www.similarweb.com\/blog\/wp-content\/uploads\/2022\/02\/competitive-matrix-scaled.png\")
<\/p>\nWhy a competitive matrix analysis is so important<\/h2>\n
Benefits of using a competitive matrix<\/h3>\n
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7 competitive matrix examples to meet your goals<\/h2>\n
SWOT Analysis<\/h3>\n
Porter\u2019s Five Forces<\/h3>\n
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<\/p>\nGartner\u2019s Magic Quadrant<\/h3>\n
![\"Gartner](\"https:\/\/www.similarweb.com\/blog\/wp-content\/uploads\/2022\/02\/Gartner-Magic-Quandrant.png\")
<\/p>\nCompetitive positioning matrix<\/h3>\n
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<\/p>\nGrowth-share matrix<\/h3>\n
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![\"Growth-share](\"https:\/\/www.similarweb.com\/blog\/wp-content\/uploads\/2022\/02\/Growth-share-matrix-2.png\")
<\/p>\nStrategic group analysis<\/h3>\n
G2 Crowd Grid<\/h3>\n