Conducting a Web Competition Analysis

A successful business starts with a good plan, and a good plan always starts with a well-made competition analysis. This is just as true, if not truer, when it comes to online businesses. Since competition is tougher and the market larger, you need to know what you're up against before laying out your plans.

One of the first things to remember is that an online competitive analysis is far from technical. Questions of search ergonomics, design and usability may turn up at some point, but for the most part you'll be talking business and strategy. Your goal isn't just to draw up facts-it's to know enough about the playing field to make smart decisions.

Knowing the competition

Chances are you're not alone in your domain; otherwise you wouldn't need an analysis to begin with. Knowing your competition will give you a handle on your market and help you target your efforts properly. Think of your competitors as a “target list”: a group of entities you want to out-perform.

Not all companies in your domain are worthy adversaries. Some may be in the same business, but geared towards a different audience; others are simply too small to have an effect on your goals. Narrow down your list to businesses that affect you in terms of revenue, branding, geographic location and target market.

When you've got your target list, go through each business and identify their strengths and weaknesses. More specifically, identify the things you want to do better than them. Does Competitor A have more content items? Then make it a goal to outnumber them in a reasonable amount of time.

Setting your criteria

So you know who to analyze, but what exactly do you want to know about them? It differs from one business to another, but most websites follow the same basic pattern. Take your target list and have a look at the following factors:

• Home page: Does it create the right impression and context for new visitors? How much information is in it? How long does it take to load?
• Navigation: Is the site easy to navigate, or would a newcomer get lost? Are the menus consistent and accessible from every page?
• Organization: Are the sections well-thought out and properly placed?
• Labeling and links: Are the links and section headers adequately labeled? Can a user easily identify relevant items on the page in one glance?
• Search function: Is there a search function on the site, and is it easily accessible? Does it yield relevant results?
• Readability and accessibility: How easy it is to read and understand the site? Are the fonts readable? Is there a good balance between text and graphics?
• Site quality and performance: Is the page designed for easy viewing? Does it load fast, or are there too many elements weighing down the page?
• Site content: Does the site offer quality content in addition to product presentation? What kinds of content are there-useful, relevant articles, or just “filler” items like press releases and marketing copy?

Conducting the analysis

Chances are you'll need to adjust your criteria to suit your needs, as it works differently for every business. Start your analysis by rating each site according to your custom criteria. Make sure to keep it consistent: take the same paths through each site, visit the same pages and sections, and look at the same factors.

You may find other features not covered by your list, so take notes as you see fit. For example, one site may have a section that no one else has, and it's important to know what difference it makes. It may also help to use a numbered rating system so you'll know which sites have an obvious edge.

Drawing up the answers

The last step is putting all your results together and actually drawing up the answers. This is where you crunch the numbers and determine what they mean for your site. Summarize your findings for each competitor and identify which elements, if any, can be adapted into your plans.

Finally, create a game plan for your site using the information you've gathered. Knowing your place in the field and the people you're playing with can steer you in the right direction, and give you a competitive edge in the online marketplace.