A competitor analysis is an essential process of understanding your position in business in relation to the marketplace. By researching and analyzing your indirect and direct competitors, we learn about their opportunities, threats, weaknesses, and strengths. This gives your business an opportunity to see in which areas it can differentiate and benefit from market gaps. This competitor analysis process is a window, too, on industry trends, customer wants, and threats. Knowing your competition clearly gives you an opportunity to fine-tune your marketing efforts, your product, and your customer relations strategies in an attempt to have an advantage.