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Competitor Analysis
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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
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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
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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.)
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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 Counterany adverse competitor actions
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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
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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
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
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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
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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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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
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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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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.