Competitor analysis is important for several reasons:
1. Market Understanding: It provides a deeper understanding of the market landscape, helping to identify opportunities and threats. 2. Strategic Planning: It aids in developing effective business strategies by revealing what competitors are doing right or wrong. 3. Customer Insight: Analyzing competitors can offer insights into customer preferences and behavior. 4. Risk Management: It helps in anticipating competitors' moves, thereby reducing business risks. 5. Benchmarking: It allows businesses to benchmark their performance against industry standards.