How Competitive Analysis Can Help Your Business

Although competitive analysis is more than assessing where your kitchen and bathroom remodeling business stands in relation to its principal competitors, it's an integral part of the general business strategy. It leads to answering what sets your business apart.

One can even view a competitive analysis as the backbone of your business plan. After you have looked deeply at what your competitors are doing, you can muster that information to develop the base for your business strategy.

Recognizing Competitors in the Remodeling Industry

Begin your analysis by pinpointing both direct and indirect competitors within the kitchen and bathroom remodeling industry. Direct competitors typically include local companies focused specifically on kitchen and bathroom renovations. There are indirect competitors which may be from niche interior design studios or from general contractors which offer remodeling services as part of their general services.

Look to any number of online tools, from local business directories and industry-specific platforms to customer review sites such as Houzz and Angie's List, to pinpoint where competitors have a presence—and to get further insights in the process.

Strategies of Competitors in the Kitchen & Bathroom Remodeling Industry

When analyzing your competitors, it’s important to break down several key elements of their strategies:

• Service Offerings: Look into the range and depth of services they provide.

• Craftsmanship and Design Philosophy: Evaluate the quality of work and the design principles they follow. A company known for sleek, modern designs might appeal to a different audience than one that focuses on rustic, farmhouse-style renovations.

• Pricing Structures: Compare your pricing to those of competitors. Are your prices competitive?

• Marketing Approaches: Consider how competitors promote their services. Are they making effective use of digital marketing, investing in SEO, or relying on more traditional methods such as referrals and local events?

• Customer Experience: Look into customer satisfaction levels.

• Operational Efficiency: Take note if competitors are adopting innovative tools or technologies to improve their processes.

What Makes Your Business Stand Out?

Clearly define how your value proposition differentiates your remodeling business. Maybe you deal with sustainable materials, providing clients with eco-friendly solutions rarely to be found among competitors. Think about the selling points that separate you from others: fast turnaround times or specialized expertise when it comes to the restoration of historical properties.

Identify untapped markets: You can identify gaps existing in the marketplace due to your competitors' failure in servicing demands on time if you have knowledge of customer feedback or are following industry trends. For example, rising demand may be there for smart home integrations or universal designs for aging-in-place.

Adjust your strategy in accordance with local demographics. If you deal in affluent urban demographics, you may want to focus on luxury and innovation. On the other hand, if you are located in suburbia, family-oriented and practical spaces may be more strongly advocated.