Competitor Analysis
Course Objectives
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Explain What is Competitor Analysis
List the Dimensions in Competitor Analysis
List the Objectives of Competitor Analysis
Explain Competitor Analysis in Strategic Planning
List the Benefits of Competitor Analysis
Explain the Steps of Competitor Analysis
Explain How to Identify Current & Potential Competitor
List the Sources of Potential Competitors
Explain What is Competitor Profiling
Explain What is CSF Analysis
Explain SWOT Analysis for Competitor Analysis
Explain How to Conduct Environmental Scanning
Explain Porter’s Five Forces Model of Competition
Explain What is Competitive Advantage
Explain the Blind Spots in Competitor Analysis
Introduction
Schindler Inc. is a leading manufacturer of
electrical safety equipments such as
Miniature Circuit Breakers (MCBs), Molded
Case Circuit Breaker (MCCBs) etc. for the past
six decades. It has carved a niche for itself in
this area and captures the largest market
share in its industry and segment.
Introduction
However, now Schindler wants to venture
into the mobile and Smartphone market.
It has decided to launch a range of mobiles
and Smartphone that will cater to the
various segments of the society.
Introduction
What do you think Schindler should do to
become successful in its venture?
Yes, a careful and thorough competitor
analysis will help Schindler recognize its
position in the market, its competitors, and
challenges etc. to help it become successful
in its new venture.
Introduction
Hence, analyzing its competitors will help
Schindler to discover its weaknesses, to
identify opportunities for and threats to the
organization from the industrial
environment.
Introduction
Competitor analysis is a driver of an
organization’s strategy and effects on how
firms act or react in their sectors. The
organization does a competitor analysis to
measure/assess its standing amongst the
competitors.
Introduction
Hence, you can understand that ‘Competitor
Analysis’ is extremely crucial and the
management should have a thorough
knowledge and analysis of the general and
competitive environment of the organization
in order to make an organization successful.
What is Competitor Analysis?
Organizations always operate within a
competitive industry environment.
They do not exist in vacuum.
Analyzing an organization’s
competitors helps an organization to
discover its weaknesses, to identify
opportunities for and threats to the
organization from the industrial
environment.
Environment Influences on Business
Competitor Analysis should involve a thorough analysis of the macroenvironment of a business. Thus, Competitor Analysis should analyze the
four external influences on a competitors’ and his own business such as:
Economic
Social
Political
Technological
Role of Competitor Analysis in Strategic Planning
Competitor Analysis helps in strategic planning in the
following manner:
It is a source of information for strategic planning.
It helps in setting of objectives for strategic
planning.
Competitor Analysis provides information that
helps in synchronizing the firm’s resources and
capabilities with the competitive environment.
Benefits of Competitor Analysis
Steps of Competitor Analysis
The following are the steps to be conducted for carrying out a Competitor
Analysis:
1
2
3
4
5
6
7
Let us now look at each in detail.
Market-based Analysis
• Market-based Analysis
Brand Competition
Hence, the competition faced by companies has
been classified based on the degree of product
substitution in the following categories:
Industry Competition
Product Competition
Generic Competition
Let us look at each in detail.
CSF Analysis
Look at the given table which shows the Critical Success Factor (CSF) of a
company for an ‘Automobile Industry’.
Critical Success
Factor
Engine Technology
Styling and Features
Brand Reputation
Strong Distribution
Network
Efficient
Manufacturing
Effective Marketing
CSF for Automobile Industry
Company
Competitors
A
B
C
D
8
9
10
7
7
8
8
8
9
9
9
8
7
6
5
8
5
9
6
8
8
8
7
7
9
9
8
10
5
4
National Environment
National Environment:
Analyzing the national
environment needs an appraisal
of whether the national
framework helps in achieving
competitive advantage in the
globalized environment.
Industry
Repetition
Environment
National
Environment
Macro Composition
Environment
Risk of Entry by Potential Competitors
Risk of Entry by Potential Competitors
Threat of Substitute
Products/Services
Bargaining Power of
Suppliers
Bargaining Power of
Buyers
Rivalry among
Current Competitors
Risk of Entry by
Potential Competitors
Potential competitors mean the firms
which are not currently competing in the
industry but have the potential to do so, if
given a choice. Entry of new players
increases the industry capacity, begins a
competition for market share and lowers
the current costs. The threat of entry by
potential competitors is partially a
function of extent of barriers to entry.
Searching Extensively for Competitors
• Searching extensively for competitors
•
Searching Extensively for
Competitors:
o
It is critical for conducting an
effective Competitor Analysis
that you do not overlook any
competitor, both current as well
as future competitors.
o
You should consider all
competitors including the
following:
 Product competitors
 Generic competitors
 Total budget competitors
Mistaking Industry Boundaries
Mistaking Industry Boundaries
One of the greatest
blind spots that
strategists face in
competitor analysis
is that they
wrongly define the
industry
boundaries.
Most of the times
organizations
define their
industry around
their current
products,
customer groups,
and geographies.
This causes them to overlook their adjacent
competitors who ultimately enter their current space.
ManagementStudyGuide.com
This is a DEMO Course On – Competitor Analysis.
Join MSG Premium Membership and Get Access to around
120 Courses.
What Do you Get:
1. View All Courses Online.
2. Download Powerpoint Presentation for Each Course.
3. Do the Knowledge Checks for Each Course.