What does competitive analysis involve?

Competitive analysis involves evaluating competitors' strengths and weaknesses to gain insights into the market landscape. This process allows a company to understand how it stands in relation to other businesses within its industry. By identifying what competitors do well, as well as where they may fall short, a company can develop strategies to enhance its own offerings and market position. This kind of analysis is crucial for informing strategic decisions, whether it involves product development, marketing strategies, or pricing policies.

In contrast, the other options focus on different aspects of business evaluation. Financial performance pertains to a brand's fiscal health rather than competitor positioning. A study of the company’s internal product range revolves around self-assessment and product development without referencing external competitors. Assessing customer service ratings targets consumer experiences with a brand rather than directly analyzing competition. Thus, focusing on competitors' strengths and weaknesses provides a targeted and insightful way to inform strategic marketing efforts.