Competitoranalys

Competitor analysis - Wikipedia, the free encyclopedia/wiki/Competitor_analysisCompetitor analysisFrom Wikipedia, the free encyclopediaCompetitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current

and potential ts1 Competitor array2 Competitor profiling3 Media scanning4 New competitors5 See also6 References7 External linksCompetitor arrayOne common and useful technique is constructing a competitor array. The steps include:define your industry - scope and nature of the industrydetermine who your competitors aredetermine who your customers are and what benefits they expectdetermine what the key success factors are in your industryrank the key success factors by giving each one a weighting - The sum of all the weightings must add up to each competitor on each of the key success factors - this can best be displayed on a two dimensional matrix -

competitors along the top and key success factors down the ly each cell in the matrix by the factor columns for a weighted assessment of the overall strength of each competitor relative to each example of a competitor array follows:Key Industry Success

Factors1 - Extensive distribution2 - Customer focus3 - Economies of scale4 - Product innovationTotalsCompetitor # 1

rating643720Competitor #1

weighted2.41.2.6.74.9Competitor #2

rating353418Competitor #2

weighted1.21.5.6.43.7Weighting.4.3.2.11.0Based on material presented in "Beat the Competition: How to Use Competitive Intelligence to Develop Winning

Business Strategies", Ian Gordon, Basil Blackwell Publishers, Oxford, UK, 1989.1 of 411/2/2006 8:44 PM

Competitor analysis - Wikipedia, the free encyclopedia/wiki/Competitor_analysisIn this example competitor #1 is rated higher than competitor #2 on product innovation ability (7 out of 10, compared to 4out of 10) and distribution networks (6 out of 10), but competitor #2 is rated higher on customer focus (5 out of 10).

Overall, competitor #1 is rated slightly higher than competitor #2 (20 out of 40 compared to 18 out of 40). When the

success factors are weighted according to their importance, competitor #1 gets a far better rating (4.9 compared to 3.7).Two additional columns can be added. In one column you can rate your own company on each of the key success factors

(try to be objective and honest). In another column you can list benchmarks. They are the ideal standards of comparisons

on each of the factors. They reflect the workings of a company using all the industry's best itor profilingAnother common technique is to create detailed profiles on each of your major competitors. These profiles give an

in-depth description of the competitor's background, finances, products, markets, facilities, personnel, and strategies. Thisinvolves:Backgroundlocation of offices, plants, and online presenceshistory - key personalities, dates, events, and trendsownership, corporate governance, and organizational structureFinancialsP-E ratios, dividend policy, and profitability** various financial ratios, liquidity, and cash flowProfit growth profile; method of growth (organic or acquisitive)Productsproducts offered, depth and breadth of product line, and product portfolio balancenew products developed, new product success rate, and R&D strengthsbrands, strength of brand portfolio, brand loyalty and brand awarenesspatents and licensesquality control conformancereverse engineeringMarketingsegments served, market shares, customer base, growth rate, and customer loyaltypromotional mix, promotional budgets, advertising themes, ad agency used, sales force success rate, online

promotional strategydistribution channels used (direct & indirect), exclusivity agreements, alliances, and geographical coveragepricing, discounts,and allowancesFacilitiesplant capacity, capacity utilization rate, age of plant, plant efficiency, capital investmentlocation, shipping logistics, and product mix by plantPersonnelnumber of employees, key employees, and skill setsstrength of management, and management stylecompensation, benefits, and employee morale & retention ratesCorporate and marketing strategiesobjectives, mission statement, growth plans, acquisitions, and divestituresmarketing strategiesMedia scanningWe can learn a lot about the competitive environment by scanning our competitors' ads. Changes in a competitor's

advertising message can reveal new product offerings, new production processes, a new branding strategy, a new

positioning strategy, a new segmentation strategy, line extensions and contractions, problems with previous positions,

insights from recent marketing or product research, a new strategic direction, a new source of sustainable competitive

advantage, or value migrations within the industry. It might also indicate a new pricing strategy such as penetration, price

discrimination, price skimming, product bundling, joint product pricing, discounts, or loss leaders. It may also indicate a

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Competitor analysis - Wikipedia, the free encyclopedia/wiki/Competitor_analysisnew promotion strategy such as push, pull, balanced, short term sales generation, long term image creation,

informational, comparative, affective, reminder, new creative objectives, new unique selling proposition, new creative

concepts, appeals, tone, and themes, or a new advertising agency. It might also indicate a new distribution strategy, new

distribution partners, more extensive distribution, more intensive distribution, a change in geographical focus, or

exclusive distribution. Little of this intelligence is definitive : additional information is needed before conclusions shouldbe drawn.A competitor's media strategy reveals budget allocation, segmentation and targeting strategy, and selectivity and focus.

From a tactical perspective, it can also be used to help a manager implement his/her own media plan. By knowing the

competitor's media buy, media selection, frequency, reach, continuity, schedules, and flights, the manager can arrange

his/her own media plan so that they do not sources of corporate intelligence include trade shows, patent filings, mutual customers, annual reports, and trade

firms hire competitor intelligence professionals to obtain this competitorsIn addition to analysing current competitors, it is necessary to estimate future competitive threats. The most common

sources of new competitors are:Companies competing in a related product/marketCompanies using related technologiesCompanies already targeting your prime market segment but with unrelated productsCompanies from other geographical areas and with similar productsNew start-up companies organised by former employees and/or managers of existing companiesThe entrance of new competitors is likely when:There are high profit margins in the industryThere is unmet demand (insufficient supply) in the industryThere are no major barriers to entryThere is future growth potentialCompetitive rivalry is not intenseGaining a competitive advantage over existing firms is feasibleSee alsomarketingindustry or market researchmarketing managementmarketing planReferencesIan Gordon: Beat the Competition. How to Use Competitive Intelligence to Develop Winning Business Blackwell Publishers, Oxford/UK 1989Michael E. Porter: Competitive Strategy: Techniques for Analyzing Industries and Competitors al linksCompetitor Analysis - A brief guide (/resources/)

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Competitor analysis - Wikipedia, the free encyclopedia/wiki/Competitor_analysisSources of information for competitor analysis (/business/strategy/competitor_)

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