In 2022, OpenAI breakthrough took traditional business practices by storm: although fundamental market research principles remain relevant. Proter's Five Forces framework, SWOT, and the "4 Ps" are not only ideal frameworks to guide LLM models but are now powered by AI tools facilitating market research. In this blog article, we provide powerful tools, to save you tons of time, while putting together your Porter Five Forces market analysis.
First of all, why use the Porter Five Forces framework in market research?
Just like the SWOT and PESTEL model, the Porter Five Forces (P5F) framework guides market researchers and business strategists to cover 360 degrees of any industry. It structures thoughts in a world of infinite data, therefore researching efforts to leave no stone unturned. The framework forces anyone to go beyond the classic "competitors' list".
According to the Porter Fives Forces model, anyone trying to understand the forces influencing an industry should cover the following:
- Competitive Rivalry
- Supplier Power
- Buyer Power
- Threat of Substitution
- Threat of New Entry
TLDR - The Porter Five Forces analysis model is all about understanding your competitor and understanding how much of a threat they represent to your business and unique positioning.
How is AI Enhancing Porter’s Five Forces Analysis?
Competitors used to be the business you could see on the other side of the street. Nowadays, competition comes from all over the globe and businesses need to remain constantly vigilant. This reality isn't limited to software companies, but also to manufacturers or all sorts.
To crunch large volumes of qualitative (website updates, social posts, public user feedback, social posts and announcements) and quantitative data (revenues, quarterly reports) on your competitors, even the ones you aren't familiar with, AI marketing tools are crucial allies.
4 soutions we recommend :
Here are the top AI and data aggregator tools we recommended for businesses to conduct regular SWOT and competition analysis, for all budgets :
- 1. Klue - THE ultimate competition analysis platform that helps you collect and sort insights on competitors. Enterprise version only, starting around $10,000+ yearly. If you do not have such budget, we've got an alternative for you : Super Market Intelligence so
2. Super Market Intelligence - This AI tool for market analysis helps businesses get a fast competition analysis for $245 or $495 for a full market analysis. - (verified partner referral)
3. G2 Crowd (Market Intelligence service) - Centralizing software data, G2 is a reliable platform for finding business software and their competitors. Reading user feedback is insightful, but be aware that many 5-star feedback are part of software editors incentivized initiatives. You might want to look at 3-star and less to get richer information. A lot of information is available for free, but they also offer powerful alternatives to dig insights form thousands of user feedback on your industry.
4. Sprout Social - Social Sprout offers a different approach to analyzing competitors. It actually leverages AI to analyze millions of data points from social media to understand what your customers think of your brand and your competitors. It enables you to make enlighted strategic decisions. Sprout packages begin at $199/seat/month.
You should constantly analyze your competitors
Too often, competition analysis is done in the early days of a company or product and remains untouched for years. At the same time, it should be updated continuously as your rivals keep evolving. Ai-driven marketing solutions help collect and digest large volumes of data so business leaders can refine their business strategies based on the latest data available.
A new era begins: Real-time competitor monitoring
Businesses move fast and new market entrants move even faster to ensure their survival and growth. Disruptors are coming to all industries and established companies have the upper hand, as long as they pay serious attention to their competitors and maintain strong connections with their customers. As daily operations may take over such tedious research tasks, artificial intelligence is the right tool to effortlessly conduct real-time competitor monitoring that will influence business strategies.
Pro tip - Bringing insights on competitors to the higher table by effortlessly leveraging AI marketing tools for market analysis is the right way to protect your company while demonstrating critical skills.
Looking for a competition analysis custom to your industry, delivered quickly? Look no further, we've got your back! Discover our AI-driven analysis.