What is the first step to conducting a competitive analysis?

Determining market position is indeed the first step to conducting a competitive analysis, as it establishes a foundational understanding of where your business stands in relation to competitors within the market. By identifying your position, you can assess your unique strengths and weaknesses compared to others in the industry. This understanding helps you recognize key differentiators that can be leveraged in your analysis and informs subsequent steps, such as examining pricing, marketing strategies, and customer feedback.

When you have a clear view of your market position, you can better analyze how your competitors price their products, what strategies they use, and how customers perceive your offerings. This overall perspective ensures that the competitive analysis is not merely a checklist of tasks but rather a strategic approach that leads to insightful conclusions and actionable recommendations for improving your market presence and achieving business goals.