Competitive Market Analysis
Understanding your competition is integral to running any successful business. Not only can it show you which resources your competitors are using to win business, but it can also reveal gaps in your own strategies and show where improvements need to be made.
Learn the art of Comparative Market Analysis (CMA). Use this essential piece of market research to help your clients sell or buy property at an appropriate price.
What is a CMA?
Comparative Market Analysiss, or CMAs, are reports created by real estate agents to assist their clients in establishing a listing price for property sales. Real estate agents use CMAs to help their clients determine an initial listing price by taking into account factors like location, square footage, number of bedrooms and bathrooms as well as upgrades.
Homeowners could attempt to complete their own comparative market analyses (CMAs) by researching comparable properties themselves, however this process would likely be time-consuming and likely lead to errors. To prevent potential complications and errors from the analysis process, it is wiser to work with an experienced real estate agent on its preparation.
Homebuyers rely on CMAs as an essential way of assessing whether or not a property represents good value, helping them understand how much a property is worth so that they can confidently make offers on it. Furthermore, a well-prepared CMA can assist sellers in quickly selling their homes at top dollar.
What are the benefits of a CMA?
An analysis of competitors is an invaluable way to gain more insight into their products, services, marketing approaches, pricing models and distribution channels. Furthermore, competitive market analyses allow you to uncover strengths and weaknesses within competitors’ products or services offerings as well as marketing approaches, pricing structures or distribution channels; it may even reveal any new opportunities or barriers within your industry.
Example: Observing competitors that lack certain features their customers want can serve as an inspiration to create products to address those gaps. By keeping up with what your competition is doing, you can save resources while staying one step ahead.
CMA certification provides additional career advantages for accountants. According to the 2021 IMA Salary Survey, certified management accountants earn 30% more than non-CMA accountants – this explains why so many companies now prefer hiring those with CMA credentials.
How can I use a CMA?
Competitor analysis can save your business resources, open new doors for opportunities, and help maintain market dominance – but it takes both time and expertise to conduct an in-depth competitor assessment.
Start by compiling a list of competitors who operate within your industry, which should include both newcomers and established entities alike – any offering similar products and services to what your own offers.
Analyse each competitor’s strengths and weaknesses, such as pricing strategy, marketing/sales tactics, technological infrastructure, customer service delivery methods and product features. You can gather this information via press releases or SEC filings; or alternatively use competitive analysis tools for ease of collection bespoke data points.
Once your competitive analysis is complete, use it to inform strategic decision-making and stay on the path towards reaching your business goals.