Competitive Analysis

Competitive analysis is a strategic process used to identify and evaluate your competitors’ strengths and weaknesses relative to your own business. This helps you understand the competitive landscape and make informed decisions to improve your market position.

Key Component of Competitive Analysis

1. Identify Competitors

2. Analyse Competitors

3. Compare Key Metrics

4. SWOT Analysis

5. Strategic Insights

Let’s create a competitive analysis example for a hypothetical food delivery app called “QuickEats”. We’ll compare it against three competitors: Jumia Food, Bolt Food, and Chowdeck.

Competitive Analysis: QuickEats

1. Identify Competitor

• Direct Competitors: Jumia Food, Bolt Food, Chowdeck

• Indirect Competitors: Local food delivery services, grocery delivery apps

2. Analyze Competitors

Jumia Food

• Strengths:

  • Established Brand: Strong brand recognition and trust in Nigeria.

  • Wide Network: Extensive network of partner restaurants and delivery coverage.

  • User-Friendly App: Easy-to-use interface with various payment options.

• Weaknesses:

  • Service Quality: Inconsistent delivery times and occasional customer service issues.

  • High Fees: Higher delivery fees compared to some local competitors.

Bolt Food

• Strengths:

  • Integration with Bolt: Leverages Bolt’s existing ride-hailing infrastructure.

  • Competitive Pricing: Often offers lower delivery fees and promotions.

  • Fast Delivery: Known for quick delivery times.

• Weaknesses:

  • Limited Restaurant Options: Fewer partner restaurants compared to Jumia Food.

  • Market Penetration: Still expanding its presence in various Nigerian cities.

Chowdeck

• Strengths:

  • Local Focus: Strong emphasis on local cuisine and partnerships with local restaurants.

  • Customer Service: Generally positive reviews for customer service and delivery reliability.

  • Innovative Features: Offers unique features like meal customization.

• Weaknesses:

  • Brand Recognition: Less well-known compared to Jumia Food and Bolt Food.

  • Coverage Area: Limited to major cities, with less presence in smaller towns.

3. Compare Key Metrics

4. SWOT Analysis

QuickEats

• Strengths:

  • Customizable delivery options tailored to customer preferences.

  • Competitive pricing with various discounts and promotions.

  • Positive customer reviews highlighting fast delivery and good service.

• Weaknesses:

  • Low market share compared to established competitors.

  • Limited brand recognition.

• Opportunities:

  • Expand into new markets and regions.

  • Partner with more local restaurants and grocery stores.

• Threats:

  • Intense competition from well-established players.

  • Potential regulatory changes affecting delivery services.

5. Strategic Insights

• Market Positioning: QuickEats positions itself as a customer-centric service with customizable options and competitive pricing.

• Marketing Strategies: Focus on digital marketing, social media campaigns, and partnerships with local influencers.

• Customer Base: Target urban professionals and families looking for convenient and affordable food delivery options.

Summary

By analyzing competitors like Jumia Food, Bolt Food, and Chowdeck, QuickEats Nigeria can identify areas for improvement and opportunities for growth. Understanding the strengths and weaknesses of competitors helps QuickEats to strategically position itself in the market and attract more customers.