Competitor Analysis

Competitor Analysis Introduction

In Business Studies the perspective of having competitors is very often neglected. But usually there will be other organisations offering similar products and with similar objectives For success in war it is necessary to know the enemy

Competitor Analysis_v1

Dr. Harald Fien

Competitor Analysis Know thy enemy How he thinks What are his strengths What are his weaknesses Where he can attacked Where the risk of attack is too great

Competitor Analysis_v1

Dr. Harald Fien

Competitor Analysis The Art of War

If you are ignorant of both your enemy and yourself then you are a fool and certain to be defeated in every battle. If you know yourself but not your enemy, then for every battle won you will suffer a loss Know the enemy and know yourself- in a hundred battles you will never be defeated Sun Tzu, The Art of War ,c 400 B.C.)

Competitor Analysis_v1

Dr. Harald Fien

Competitor Analysis The four Cs

There are four stages in monitoring competitors: Stage 1 Collecting the information Stage 2 Converting the information into intelligence Break down information Collate and catalogue the information Integrate it with other information Analyse and interpretate it Stage 3 Communicate the intelligence Stage 4 Counter any adverse competitor actions

Competitor Analysis_v1

Dr. Harald Fien

Competitor Analysis Sources of competitor information

Information in the public domain
Available to everyone Annual reports, press releases, advertisements, websites

Internal information
From sales force and customer service staff Information picked by these contacts

Third party information

From people and organisations not directly connected with the competitor Market research organisations, journalists, the media, credit rating organisations

Competitor Analysis_v1

Dr. Harald Fien

Competitor Analysis Key questions

Who are our competitors? What products or services do they offer? What is their pricing policy? How do they advertise and promote their products? What threats do they pose? What is the profile of our competitors? What are the objectives of our competitors? What strategies are our competitors pursuing and how successful are these strategies? What are the strengths and weaknesses of our competitors? Who are their suppliers? How financially secure are they? What kind of organisation are they?
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Competitor Analysis_v1

Competitor Analysis Marketing information required (1)

Advertising strategy & spending Advertising effectiveness Sales promotions Customer brand preferences Image and levels of brand /product recognition Sales performance & trends Market shares List prices and discounts by product and customer type Degree of customer satisfaction New product development

Competitor Analysis_v1

Dr. Harald Fien

Competitor Analysis Marketing information required (2)

Type of distribution network used Special terms and existence of agreements Dealers objectives Distributors performance levels Size and quality of customer database Sales force coverage After sales capabilities Size and calibre of sales force Stock levels Location of warehouses & other logistical support Customer service philosophy

Competitor Analysis_v1

Dr. Harald Fien

Competitor Analysis Marketing information required (3)

Customer profiles Customer retention rates Buying motives Patterns of usage Degree and depth of brand loyalty Satisfaction levels-product design, performance, quality, reliability. Breadth and depth of product range Comparative product performance New product policies Investment in R&D New product development and modifications Size assortment New packaging
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Competitor Analysis_v1

Competitor Analysis Financial information required

Gross sales Gross profits and profit margins Profit by product & operation Cost structure Cost levels Relative costs Financial strength Investment strategy Investment history & plans

Competitor Analysis_v1

Dr. Harald Fien

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Competitor Analysis Management information required

Objectives in short and long run Organisational structure Philosophy and culture Expectations Attitudes to risk Identity of key executives Skills and special expertise Competitive strategies Ownership of strategies and commitment to them Organisational structures Key success factors Strategic plans Terms of strategic partnership
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Competitor Analysis_v1

Competitor Analysis Lessons Learned

What are the 4 Cs of competitor analysis? What are sources of competitor information? Give some of the key questions for competitor analysis.

Competitor Analysis_v1

Dr. Harald Fien

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