Competitive analysis is a strategic process in which you examine your competitors' strengths and weaknesses to improve your own bid. In a tender, it is crucial to understand what your competitors are good at and where their weaknesses lie so that you can differentiate and strategically strengthen your own bid. A thorough competitive analysis helps you strengthen your unique position in the market and gives you a competitive advantage during the evaluation process.
In tenders, the number of bidders can vary, from a few companies to dozens. In a competitive environment, it is essential to know how to differentiate yourself. Analyzing your competitors gives you insight into their strategies and performance, and you can use this knowledge to improve your own bid. This helps not only to bring out your own strengths, but also to exploit competitors' weaknesses.
A good competitive analysis can also help you establish realistic pricing strategiesand understand what value-added the contracting authority is looking for. You can see which approach is preferred in previous contracts, which helps to develop a winning strategy.
1. Research previous tenders:
Start by analyzing previous tenders that are similar to the contract you want to bid on. Often the winners of previous tenders are public, and you can learn from their approach. Examine the documents and award criteria from those tenders, and pay particular attention to the EMVI(Economically Most Advantageous Tender) assessments if they are available. This can give you insight into how they scored on aspects such as quality, price and risk management.
Example: If you see that a competitor consistently wins because of strong innovations or sustainability, you can contrast your offer by giving extra emphasis to your innovation and sustainable approach.
2. Analyze competitors' strengths:
Identify your competitors' strengths, such as technical expertise, pricing, customer satisfaction or sustainable solutions. This will help you understand where you need to strengthen your own offering to remain competitive. Try to leverage these strengths by looking for ways your offering can provide that extra bit of value, such as through innovative technologies or superior risk management methods.
Tip: Map out their strengths by doing a SWOT analysis so you can better visualize their strengths and respond to them in your own entry.
3. Identify weaknesses and capitalize on opportunities:
Competitors' weaknesses may present opportunities for your business. For example, consider companies that may be overcharging or have limited technical capacity. If you see that a competitor has weak risk management, you can give extra emphasis to your risk management strategy to gain the contracting authority's confidence. You can also pay attention to complaints or feedback that is publicly available.
Example: If you know that a competitor does not meet certain sustainability requirements, you can focus your bid on your strengths in sustainability management.
4. Define your positioning:
After understanding your competitors' strengths and weaknesses, you can determine how you want to position yourself in the tender. Do you want to emphasize price, quality, speed, or innovation? Make sure you clearly articulate your USPs and differentiate your offering from the competition. Also consider your pricing strategy: do you offer a lower price to remain competitive, or do you focus on providing additional value to justify a higher price?
5. Use public information sources:
Use public data such as annual reports, websites, press releases and news articles to learn more about your competitors' performance. Platforms such as TenderNed or similar procurement platforms in other countries can also be useful to look at competitors' previous bids and performance. This will give you a fuller picture of their approach and position in the market.
6. Listen to market feedback:
Feedback from the contracting authority or from market consultations can contain valuable information about your competitors' strengths and weaknesses. This feedback can help you refine your own bid and better match the contracting authority's expectations. You can also gain valuable insights during bidder conferences by listening to your competitors' questions.
Tip: Pay close attention to signals given during a bidder conference about the contracting agency's priorities. This can help you respond better strategically.
7. Adjust your pricing strategy:
Based on your analysis, you can optimize your pricing strategy. If you see that competitors typically win with low prices, you can consider whether you can compete on price or shift your focus to added value and quality. By gaining a good understanding of competitors' price points, you can find a strategically correct balance between price and quality.
Example: If you notice that your competitor always offers the lowest price but scores moderately on quality, you can emphasize your higher quality and added value as a USP in combination with a competitive price.
Conducting a detailed competitive analysis helps you make strategic decisions and improve your bid. By properly understanding your competitors, you can strengthen your own strengths, optimize your pricing strategy and differentiate your tender from the rest. Ultimately, a strong competitive analysis allows you to better convince the contracting authority of your added value.
