Competitor analysis

WHAT IS COMPETITOR ANALYSIS?
Competitor analysis in management
is an assessment or evaluation of
OBJECTIVES
STRATEGIES
STRENGTHS
WEAKNESSES
Of current and potential competitors
1

COMPETITOR
ANALYSIS
IDENTIFYING
COMPETITORS
[OBJECTIVES AND
STRATEGIES]
ANALYZING
COMPETITORS
[STRENGTHS AND
WEAKNESSES]
2

A] FIVE MATTERS
1) Who are our competitors?
2) What are their objectives?
3) What are their vision and mission?
4) How is the approach of their reaction?
5) What is their strategy?
4

B] TWO VIEWPOINTS
Identifying competitors at
industrial concept
 Number of sellers [pure
monopoly, pure oligopoly,
differentiated oligopoly, monopolistic
competition, perfect competition]
 Entry and mobility barriers
 Exit and shrinking barriers
 Cost structure
 Vertical integration
 Global reach
 Price
Identifying competitors at
market concept
 In context of customers
and not industry
 Satisfaction of customers
 Customer at the center
5

A] IDENTIFICATION OF STRENGTHS
 USP in product
 Quality of product
 Low cost product
 Production capacity
 Distribution arrangements
 Staff
 Effective media of advertisements
 Quick response to complaints/feedback
7

B] IDENTIFICATION OF WEAKNESSES
 Lower production capacity
 Limitation of higher production
 Lack of training and lack of experts too
 Limited monetary instruments
 No modern technology [R&D]
 Improper logistics
 Financial weakness
 Marketing of product
8

C] IDENTIFICATION OF OPPORTUNITIES
 High cost of competitor’s product
 High price of competitor’s product
 Low quality product of the competitor
 Problems in distribution channel of competitor
 No awareness of brand of competitor
 Loss to competitor
 Failure of executed strategy of competitor
 Traditional methods of production (no advanced
technological methods used)
9

D] IDENTIFICATION OF THREATS
 Cost advantages to competitor
 Low price of competitor’s product
 High or good quality of competitor’s product
 Widespread distribution channel
 Product or market development
 Supplier power
 Technological progress by competitor
 Success of newly executed strategies
10

E] CUSTOMER AND COMPETITOR
 BALANCE BETWEEN CUSTOMER AND COMPETITOR
 COMPETITORS ORIENTED COMPANY
 CUSTOMERS ORIENTED COMPANY
customer
competitor
11

F] COMPETITOR’S REACTION
It is important to know about the competitor’s particular
beliefs regarding way of doing business on the basis of a
reaction pattern by such competitor
Different types of competitor :
 The laid back competitors
 The selected competitors
 The tight competitors
 The stochastic competitors
12

G] COMPETITORS TO ATTACK AND AVOID
 An important part in the process of analyzing competitors.
 To understand their strengths and their weaknesses on the
basis of types of competitor.
13

H] TYPES OF COMPETITORS
STRONG WEAK
BAD
DISTANTCLOSE
GOOD
14

EXTRA POINTS
 Advantages of competitor analysis
 Sources of information for competitor analysis
 Points to be considered for competitor analysis
15

ADVANTAGES
 Determine strategic decisions
 Cost reduction
 Increase in sales
 Increase in profit
 Risk minimization
16

SOURCES
Internal
Sources
a) Management
b) Human
resources
c) Procurement
d) Sale
e) Marketing
f) Customer
service
External
Sources
a) Corporate
associations
b) Press articles
c) Suppliers
d) Buyers
e) Official sources
f) Meetings
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POINTS TO BE CONSIDERED FOR ANALYSIS
CATEGORY AREAS FOR ANALYSIS
MARKET  MARKETING AND SALES
 SALES STRUCTURE
 PRICE
PRODUCT  QUALITY
 COST STRUCTURE
 EXPERTISE
FINANCES  LIQUIDITY
 COST DEVELOPMEN T
STAFF  WORKING CLIMATE
 STAFF TRAINING AND EDUCATION
18

CONCLUSION
 For survival in market
 To be a leading firm in the industry
 For accurate decisions
 For satisfaction of customers
 For exploiting opportunities and face threats
19

Competitor analysis

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Competitor analysis