What is the process of assessing competitors within a specific area or industry segment called?

The process of assessing competitors within a specific area or industry segment is known as competitive analysis. This involves systematically evaluating the strengths and weaknesses of competing businesses in order to understand their strategies, market positioning, and potential threats to one’s own business. Competitive analysis provides valuable insights that can inform strategic decision-making, such as identifying market trends, understanding customer preferences, and recognizing gaps in service or product offerings.

Conducting a competitive analysis typically includes reviewing competitors' products, pricing strategies, marketing tactics, and customer service practices. The goal is to gain a comprehensive understanding of the competitive landscape, which helps businesses to not only anticipate competitor actions but also to identify opportunities for innovation or improvement.

In contrast, market research focuses more broadly on understanding customer needs and behaviors, rather than just analyzing competitors. SWOT analysis is a framework for identifying a business's internal strengths and weaknesses, as well as external opportunities and threats, but it does not specifically concentrate on competitors. Product evaluation involves assessing the features and performance of a specific product rather than examining competitors as a whole. Thus, competitive analysis is the most precise term for assessing competitors within a specific industry segment.