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Competitive Analysis

Competitive analysis refers to the process of researching, monitoring, and evaluating the strategies, strengths, and weaknesses of rival dealerships and automotive businesses operating within the same market. 

Dealerships use this process to understand better how they stack up against competitors in areas such as pricing, inventory selection, customer service, marketing strategies, online presence, and promotional offers. The goal is to identify opportunities for differentiation, adjust tactics in real-time, and maintain a strong position in a crowded, fast-evolving automotive landscape.

Competitive analysis is not a one-time task. It’s an ongoing discipline that enables dealers to make smarter decisions about inventory, sales training, marketing campaigns, and customer experience design.

Why Competitive Analysis Matters for Dealerships 

A dealership’s performance doesn’t exist in a vacuum. Car buyers often compare multiple retailers before making a decision. Understanding what competing dealerships offer and how customers respond helps you adapt and outperform. 

Effective competitive analysis empowers you to: 

  • Refine pricing strategies to stay attractive without sacrificing margin 
  • Spot local market trends early, such as rising demand for EVs or certified pre-owned vehicles 
  • Monitor promotional tactics that drive traffic to competitor websites or showrooms 
  • Benchmark service levels, response time, and digital experience quality
  • Evaluate how your online reputation compares to others in your area

Competitive insights aren’t just for leadership; they should inform marketing, sales training, inventory acquisition, and even F&I product presentation.  

What Should a Competitive Analysis Include?

A thorough dealership competitive analysis typically covers the following categories:

1. Inventory Assessment 

Evaluate the types, makes, models, and trims your competitors keep in stock. Note their mix of new, used, and certified pre-owned vehicles. Consider the availability of EVs, hybrids, or commercial inventory.

2. Pricing and Promotions 

Track advertised pricing, financing offers, lease specials, trade-in incentives, and dealer discounts. Understanding how others position their vehicles helps you adjust offers or highlight value-adds.

3. Website and Digital Presence 

Examine competitors’ websites for user-friendliness, chat features, digital retailing methods, and appointment booking flows. Social media engagement, Google reviews, and video content also shape brand perception.

4. Customer Experience 

Secret-shop or analyze online reviews to gauge how competitors treat buyers, especially in high-pressure or post-sale situations. Look at showroom experience, test drive flexibility, and post-sale follow-up practices.

5. Marketing and Messaging 

Study the language, tone, and channels used in your competitors’ advertising. Are they focused on pricing, prestige, community involvement, or something else? Compare how their messaging aligns with customer expectations in your region.

6. Service and Parts Offers 

Don't overlook fixed ops. Analyze service package pricing, warranty coverage, parts availability, and customer conveniences like pick-up/drop-off services.

How Dealerships Conduct Competitive Analysis 

There are many ways to gather competitive data, including:

  • Monitoring competitor websites and local listings
  • Analyzing social media ads, engagement, and reviews
  • Using market research tools and dealer management software
  • Visiting rival showrooms or conducting mystery shopping
  • Tracking keywords, SEO rankings, and digital advertising activity

Data alone isn’t enough. Teams must interpret findings, draw actionable insights, and adapt quickly to maintain or grow market share.

Competitive Analysis vs. Market Analysis 

While both involve data-driven research, competitive analysis is about your direct rivals, those selling to the same customers in the same region. Market analysis takes a broader view, examining customer behavior, industry trends, and economic forces that influence purchasing patterns. Both are essential, but competitive analysis helps you act more tactically and differentiate effectively.

How Competitive Analysis Helps Sales and BDC Teams 

Sales and BDC staff benefit directly from insights received from a dealership’s competitive analysis. When they understand how competitors approach leads or structure offers, they can: 

  • Position your value proposition more effectively
  • Address objections with clarity and confidence
  • Tailor scripts and outreach based on real-time customer expectations
  • Handle pricing conversations without defensiveness

When everyone on your team knows what they're up against—and how to stand out—conversion rates improve.

Challenges in Competitive Analysis 

Despite its benefits, competitive analysis can be time-consuming and prone to assumptions. Common mistakes include:

  • Focusing only on pricing and missing experience differentiators
  • Relying on outdated data 
  • Ignoring indirect competitors like Carvana or online-only platforms
  • Failing to involve cross-departmental teams (marketing, F&I, service)

Dealerships that turn competitive intelligence into ongoing strategy discussions see better performance across sales, marketing, and customer satisfaction.

Automotive Training Network provides dealership training that translates market insight into measurable sales growth. Our expert-led coaching sharpens your team’s competitive awareness and enhances lead handling. 

Partner with ATN to stay one step ahead in your market.