What information is typically gathered through competitive analysis?

The information gathered through competitive analysis primarily focuses on understanding the strengths and weaknesses of competitors in the market. This analysis enables businesses to identify what competitors do well, such as their unique selling propositions, capabilities, and market presence, as well as areas where they might be lacking. By assessing these aspects, a company can refine its own strategies, develop competitive advantages, and make informed decisions regarding positioning, marketing, and product development.

While other factors like customer demographics, raw material pricing, and distribution channels are crucial for overall business strategy, they do not specifically pertain to the objectives of a competitive analysis. Gathering insights into competitors' strengths and weaknesses is fundamental for a firm to navigate its competitive landscape effectively and to strategize accordingly.