Which aspect does competitive analysis focus on?

Competitive analysis primarily focuses on identifying key competitors and their strengths. This aspect is crucial because understanding who the competitors are and what advantages they possess allows a business to effectively strategize its positioning in the market. By assessing competitors, organizations can recognize unique selling propositions, pricing strategies, marketing tactics, and overall performance metrics that may influence their own strategies.

This insight helps businesses to not only differentiate themselves but also to anticipate competitor moves and adapt accordingly, ultimately contributing to a stronger competitive advantage in the marketplace.