SWOT analysis of competitors is necessary for a company for several reasons:

 

1. Understanding the competition: SWOT analysis helps a company understand the strengths and weaknesses of its competitors. By analysing their strategies, strengths, and weaknesses, a company can make better-informed decisions about its own business strategy.

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2. Identifying opportunities and threats: A SWOT analysis of competitors can help a company identify opportunities and threats in the market. For example, if a competitor has a strong presence in a certain market segment, it may be an opportunity for the company to enter that segment as well. Similarly, if a competitor is planning to launch a new product, it may pose a threat to the company's existing product line.

 

3. Benchmarking performance: By analysing the strengths and weaknesses of its competitors, a company can benchmark its own performance against theirs. This can help the company identify areas where it needs to improve and areas where it is performing well.

 

4. Developing effective strategies: A SWOT analysis of competitors can help a company develop effective strategies to compete in the market. For example, if a competitor has a strong brand reputation, a company may need to focus on building its own brand image to compete effectively.

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Overall, SWOT analysis of competitors is essential for a company to stay competitive in the market and to make better-informed decisions about its own business strategy.