What is the first step in competitor analysis?

The first step in competitor analysis is to define the market. Understanding the market is essential because it sets the context for identifying who the competitors are. By defining the market, a pharmacy can clarify the scope of its services, the target customer demographics, and the overall landscape in which it operates.

This foundational step ensures that any subsequent analysis is relevant and targeted. It allows the business to determine the specific segment of the pharmacy market it is competing in, which influences the identification of competitors as well as the profiling of those competitors. Without a clear definition of the market, any attempts to assess competitors, their strategies, or their value propositions could be misaligned or ineffective, as the analysis would lack a focused perspective.

Thus, establishing a comprehensive understanding of the market is critical before delving into identifying competitors, profiling them, and comparing value propositions, as these actions need to be grounded in a solid understanding of where the pharmacy fits within the larger healthcare landscape.