Competitive analysis is the process of evaluating the strengths and weaknesses of current and potential competitors within a market. This involves researching their products, services, pricing strategies, and marketing tactics. By understanding what competitors are doing, businesses can identify opportunities for improvement and differentiation, helping them to position themselves more effectively in the marketplace. Additionally, competitive analysis helps companies anticipate market trends and consumer preferences. By analyzing competitors like Company A or Company B, businesses can gain insights into successful strategies and potential threats. This information is crucial for making informed decisions and developing effective business strategies that can lead to increased market share and profitability.