Definition - What does Competitive Monitoring mean?
Competitive monitoring is a marketing and strategy management process wherein all avenues of the business landscape are monitored and evaluated.
The most prominent of these avenues are the business competitors and their various activities such as events, product developments, product launches, and product prices. Knowing what the competition will do next puts the business in the position of being able to plan how to counter it or how to do better than the competition.
Competitive monitoring is also known as competitive analysis.
Techopedia explains Competitive Monitoring
Traditional methods of analysis and action such as SWOT are no longer enough. For example, the SWOT analysis principle puts an organization in a defensive position, making it try to cover its weaknesses and threats and maintaining its strengths rather than actively seeking opportunities and improving on strengths. But that method can be modified to suit the organization’s needs.
Competitive monitoring is the process of monitoring all of the competition’s moves, especially market and product prices. With this, a business can change their prices along with the market and the competition in order to retain or gain new customers. Holding on to prices for a long time means that competitors could already have lowered theirs, attracting some of the business’ customers.
Competitive monitoring provides:
- Relevant and timely information about competitors in a relatively short time
- Improve business responsiveness
- Better knowledge of potential threats