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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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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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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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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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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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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.