Given your business’ product (offering) and skills Internal analysis Is a particular market attractive? (Sub)market analysis ▪ Attractiveness = long run profit potential Selecting an attractive product-market combination ▪ What do my customers want? Customer analysis ▪ Who are my competitors and how do they act? Competitor analysis ▪ Have I got what it takes? Internal analysis Deciding on strategy + implementation Environmental analysis Strategic analysis
5 MACRO-ENVIRONMENT Technology Government Economics Culture Demographics MICRO ENVIRONMENT BUSINESS Competition Customers COMPANY COMPETITION CUSTOMER Customer analysis Competitor analysis Internal analysis Building blocks market analysis Strategic analysis • Identifying them • Understanding them
Competitor analysis IDENTIFYING COMPETITORS customer-based approach strategic groups 6
IDENTIFYING – CUSTOMER-BASED APPROACH Product-use associations Customer-choice approach ‘ What would you have chosen if product/brand X was unavailable ?’ Product-use approach: Sample 1: usage contexts/applications = ? Sample 2: associate products/brands to usage contexts/applications Indirect competitors Direct competitors Easy to identify In-depth analysis Indirect competitors 7 Competitor analysis
8 Competitor analysis IDENTIFYING – STRATEGIC GROUPS Strategic group S IMILAR COMPETITVE STRATEGIES e.g., same distribution channel/communication strategy/p-quality positioning , … S IMILAR CHARACTERISTICS e.g., size, aggressiveness , … S IMILAR ASSETS AND COMPETENCIES e.g., brand associations, logistics, global presence, R&D Mobility barriers Exit and entry Assets and competencies (basis SCA) Feasibility & usability of the competitor analysis increases
9 Competitor analysis IDENTIFYING – POTENTIAL COMPETITORS Market expansion Product expansion Backward integration Forward integration Export of assets or competencies Retaliatory of defensive strategies FIVE FORCES MODEL OF PORTER – THREAT OF POTENTIAL NEW ENTRANTS (see Ch.4) !
10 UNDERSTANDING COMPETITORS – HOW? Competitor analysis Objectives and Commitment Objectives and Commitment Image and Size, Growth & Profitability Size, Growth & Profitability Current and Past Strategies Current and Past Strategies Strengths and Weaknesses Strengths and Weaknesses Cost Structure Cost Structure Exit Barriers Exit Barriers Organization and Culture Organization and Culture Competitor Actions Competitor Actions Image and Positioning
11 Competitor analysis UNDERSTANDING COMPETITORS – HOW? 1. SIZE, GROWTH AND PROFITABILITY Size and growth i.e., strength of competitor (strategic group) & success of their strategy Profitability affects access to investment funding 2. IMAGE AND POSITIONING Image Brand personality (intangibles basis SCA)
12 Competitor analysis UNDERSTANDING COMPETITORS – HOW?
You've reached the end of your free preview.
Want to read all 662 pages?
- Spring '18