Competitor AnalysisCompetitor Analysis

Compaq

AppleSony

Dellgobi

What is Competitive What is Competitive Intelligence?Intelligence?

A systematic and ethical A systematic and ethical program for gathering program for gathering information about information about competitors and general competitors and general business trends to further business trends to further your own company’s goalsyour own company’s goals

Why CI?Why CI?

Playing the Game Playing the Game BetterBetter

Focus on existing Focus on existing competitors/strategic competitors/strategic positionposition

Leverage value chain Leverage value chain strengthsstrengths

Incrementally Incrementally improve existing improve existing strategies/tacticsstrategies/tactics

Play the Game Play the Game DifferentlyDifferently

New market New market opportunityopportunity

New customersNew customers Develop/leverage new Develop/leverage new

value chain strengthsvalue chain strengths New New

strategies/tacticsstrategies/tactics

Competitor Intelligence Competitor Intelligence PyramidPyramid

s

z

aSources of DataSources of Data

Analysis of DataAnalysis of Data

RecommendationsRecommendations

RecommendationsRecommendations

Analysis of DataAnalysis of Data

Sources of DataSources of Data

Competitor Intelligence Competitor Intelligence PyramidPyramid

Industry experts/analysts Industry publications Trade shows/conferences Advertisements/PR University research centers Financial Court documents/patents Suppliers/customers Newspapers/business wire Help wanted ads Reverse engineering labs

RecommendationsRecommendations

Analysis of DataAnalysis of Data

Sources of DataSources of Data

Competitor Intelligence Competitor Intelligence PyramidPyramid Value chain analysis

Ratio analysis Benchmarking Cost analysis Trend analysis Personality profiling Wargaming/

scenario planning Competitive

behavior analysis

RecommendationsRecommendations

Analysis of DataAnalysis of Data

Sources of DataSources of Data

Competitor Intelligence Competitor Intelligence PyramidPyramid

Track Existing Rivals Anticipate New Rivals Inform Strategy:

Identify own/competitor’s strengths/weaknesses

Early warning system Plan of attack/retaliation

Who’s Job Is It?Who’s Job Is It?

Top Top ExecsExecs

DepartmentDepartmentManagersManagers

ProjectProjectManagersManagers

IndependentIndependentConsultantsConsultants

DepartmentDepartmentStaffStaff

Planning & FinanceAnalysts

CI ParadoxCI Paradox

Many Global 1000 companies Many Global 1000 companies don’t have full-scale CI unitsdon’t have full-scale CI units

Most Global 1000 executives Most Global 1000 executives believe that success depends on:believe that success depends on: Looking aheadLooking ahead First-mover advantageFirst-mover advantage Strategic flexibility and Strategic flexibility and

maneuveringmaneuvering

Future ObjectivesFuture ObjectivesHow do our goals compare to our competitors’ goals?How do our goals compare to our competitors’ goals?Where will emphasis be placed in the future?Where will emphasis be placed in the future?

What is the attitude toward risk?What is the attitude toward risk?

Competitor AnalysisCompetitor Analysis

What drives the competitor?What drives the competitor?

Competitor AnalysisCompetitor Analysis

What is the competitor doing?What is the competitor doing?

What can the competitor do?What can the competitor do?

Future ObjectivesFuture ObjectivesHow do our goals compare to our competitors’ goals?

How do our goals compare to our competitors’ goals?Where will emphasis be placed in the future?Where will emphasis be placed in the future?

What is the attitude toward risk?What is the attitude toward risk?

Current StrategyCurrent StrategyHow are they currently competing?How are they currently competing?

Does this strategy support changes in the competitive structure?

Does this strategy support changes in the competitive structure?

Competitor AnalysisCompetitor Analysis

What does the competitor believe about itself and the industry?What does the competitor believe about itself and the industry?

Future ObjectivesFuture ObjectivesHow do our goals compare to our competitors’ goals?

How do our goals compare to our competitors’ goals?Where will emphasis be placed in the future?Where will emphasis be placed in the future?

What is the attitude toward risk?What is the attitude toward risk?

Current StrategyCurrent StrategyHow are we currently competing?How are we currently competing?

Does this strategy support changes in the competition structure?

Does this strategy support changes in the competition structure?

Do we assume the future will be volatile?Do we assume the future will be volatile?

Are we assuming stable competitive conditions?Are we assuming stable competitive conditions?

What assumptions do our competitors hold about the industry and themselves?

What assumptions do our competitors hold about the industry and themselves?

AssumptionsAssumptions

Competitor AnalysisCompetitor Analysis

What are the competitor’s What are the competitor’s capabilities?capabilities?What are the competitor’s What are the competitor’s capabilities?capabilities?

Future ObjectivesFuture ObjectivesHow do our goals compare to our competitors’ goals?

How do our goals compare to our competitors’ goals?Where will emphasis be placed in the future?Where will emphasis be placed in the future?

What is the attitude toward risk?What is the attitude toward risk?

Current StrategyCurrent StrategyHow are we currently competing?How are we currently competing?

Does this strategy support changes in the competition structure?

Does this strategy support changes in the competition structure?

Do we assume the future will be volatile?Do we assume the future will be volatile?

Are we operating under a status quo?Are we operating under a status quo?

What assumptions do our competitors hold about the industry and themselves?

What assumptions do our competitors hold about the industry and themselves?

AssumptionsAssumptions

What are my competitors’ strengths and weaknesses?What are my competitors’ strengths and weaknesses?

How do our capabilities compare to our competitors?

How do our capabilities compare to our competitors?

CapabilitiesCapabilities

Future ObjectivesFuture ObjectivesHow do our goals compare to our competitors’ goals?

How do our goals compare to our competitors’ goals?Where will emphasis be placed in the future?Where will emphasis be placed in the future?

What is the attitude toward risk?What is the attitude toward risk?

Current StrategyCurrent StrategyHow are we currently competing?How are we currently competing?

Does this strategy support changes in the competition structure?

Does this strategy support changes in the competition structure?

Dynamic Head-to-Head RivalryDynamic Head-to-Head Rivalry

Do we assume the future will be volatile?Do we assume the future will be volatile?

Are we operating under a status quo?Are we operating under a status quo?

What assumptions do our competitors hold about the industry and themselves?

What assumptions do our competitors hold about the industry and themselves?

AssumptionsAssumptions

ResponseResponseResponseResponseWhat will our competitors What will our competitors do in the future?do in the future?What will our competitors What will our competitors do in the future?do in the future?

Where do we have a Where do we have a competitive advantage?competitive advantage?Where do we have a Where do we have a competitive advantage?competitive advantage?

How will this change our How will this change our relationship with our relationship with our competition?competition?

How will this change our How will this change our relationship with our relationship with our competition?competition?

CapabilitiesCapabilitiesCapabilitiesCapabilities

What are my competitors’ What are my competitors’ strengths and weaknesses?strengths and weaknesses?What are my competitors’ What are my competitors’ strengths and weaknesses?strengths and weaknesses?

How do our capabilities How do our capabilities compare to our compare to our competitors?competitors?

How do our capabilities How do our capabilities compare to our compare to our competitors?competitors?

Strategic Group Map: Beer Strategic Group Map: Beer (Pre-light / Pre-microbrew)(Pre-light / Pre-microbrew)

Dark/Full

Light

Low Price High Price

Amber

RegularHeineken

Miller Bud

Old Swill

Guinness

Strategic Group Map: BeerStrategic Group Map: Beer

Dark/Full

Light

Low Price High Price

Amber

Regular Old Swill

GuinnessBlackened Voodoo

Anchor Porter

AmstelCardinal

Miller LiteBud Ice

Sam AdamsBass Ale

Pilsner Urquell

Killian’s RedRed Wolf

Amber Bock

Lowenbrau

Killian’s BrownLowenbrau Dark

Milwaukee’s Best Light

BudMiller