Competitor Analysis

University:
California State University, Northridge
Course:
BUS 104 | Introduction to Business
Academic year:

2023
Views:

41

Pages:

2
Author:

JJIssac

COMPETITOR ANALYSIS our strategic moves? Develop competitor response profiles based on the above. Being able to analyze competitors is absolutely vital for strategy. You need to know who your key competitors are and understand their goals, assumptions, current strategies, and capabilities. This allows you to anticipate their moves and craft approaches to gain an edge. Armed with this multidimensional understanding, we can craft approaches to outmaneuver rivals. We can also anticipate reactions and build contingency plans. Competitor analysis powers strategy. Let's walk through the key questions: Strategic Groups  Who specifically are our competitors? Could be direct rivals offering similar products/services or indirect ones competing for customer dollars. Cast a wide net.  What are competitors' future goals and expansion plans? Insight into their ambitions helps predict strategies. Examine business unit and corporate goals.     What are their assumptions about themselves and the industry? Perceived strengths/weaknesses shape actions. Assumptions may be right or wrong. What are competitors' current strategies in areas like pricing, products, promotion, distribution? Identify recent strategic thrusts. What are competitors' core capabilities and vulnerabilities? Assess financial, marketing, operational, innovation strengths/weaknesses. How will competitors likely respond to industry events or Within an industry, you'll often see clusters of firms pursuing similar strategies. These are strategic groups. Firms in a strategic group have common approaches to things like target segments, product lines, distribution channels, integration, etc. Strategic groups are useful for a few reasons:  Immediate competitors are often in the same strategic group. Rivalry is most direct within a group.  Groups have differing competitive positions/prospects based on their strategies. Choose position wisely.  Mobility barriers may lock groups into their positions. High barriers protect against new entry.  Groups face varying threats from industry forces like buyers, substitutes. Assess each group's situation.  Innovation and shifts in barriers may reshape groups. New success factors unsettle the old order. The key is to identify strategic groups and choose the approach aligned with internal capabilities and industry trends. Groups confer strategic advantages to well-positioned players.