Ch03 Competitor Analysis

7/29/2019 Ch03 Competitor Analysis

1/18

2007JohnWiley&

Sons

Chapter 3 - Competitor Analysis PPT 3-1

Competitor Analysis

Chapter Three

Copyright 2010 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in

Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful .

Requests for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser

may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility

for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.


2/18

2007JohnWiley&

Sons

Questions to structure

Competitor Analysis

Who are the competitors ?

Against whom do we usually compete? Who

are our most intense competitors? Less

intense but still serious competitors? Makersof substitute products?

Can these competitors be grouped into

strategic groups on the basis of their assets,competencies and/or strategies?



3/18

2007JohnWiley&

Sons

Evaluating the Competitors

What are the objectives and strategies? Their level of

commitment? Their exit barriers?

What is their cost structure? Do they have a cost advantage or a

disadvantage?

What is their image & positioning strategy?

Which are the most successful/unsuccessful competitors

overtime? Why?

What are the strengths and weaknesses of each competitor or

strategic group?

What leverage points (or strategic weaknesses or customer

problems or unmet needs) could competitors exploit to enter the

market or become more serious competitors? How strong or weak is each competitor wrt to their assets and

competencies?



4/18

2007JohnWiley&Sons


Competitor Identification

Customer-Based Approaches

Customer choices

What brand would you buy ifyour favorite was unavailable?

Application associations What applications?

What brands for each application?

What product substitutes?


5/18

2007JohnWiley&Sons


Competitor Identification

Strategic Groups

Pursue similar competitive strategiesHave similar characteristics

Have similar assets and competencies


6/18

2007JohnWiley&Sons


Competitor Analysis

Potential Competitors: Market expansion

Product expansion

Backward integration

Forward integration

Export assets or competencies

Retaliatory or defensive strategies


7/18

2007JohnWiley&Sons


Understanding the Competitors

Objectives and

Commitment

Image and

PositioningSize, Growth

& Profitability

Current and

Past StrategiesStrengths and

Weaknesses

Cost Structure

Exit Barriers Organization

and Culture

Competitor

Actions

Figure 3.2


8/18

2007JohnWiley&Sons


Relevant Assets and Competencies

1) -What businesses have been successful over

time?

-What assets or competencies contributed

to their success?

-What businesses have had chronically low

performance?

-Why?

-What assets or competencies do they lack?


9/18

2007JohnWiley&Sons


2) -What are the key customer motivations?

-What is needed to be preferred?

-What is needed to be considered?

-What is really important to the customer?

3) What assets and competencies represent

industry mobility (entry and exit) barriers?



10/18

2007JohnWiley&Sons


4) -What are the significant value added

components in the value chain?

-Do any provide the potential to generate

a competitive advantage?



11/18

2007JohnWiley&Sons


Key Learnings

Competitors can be identified by customer choice (the set from which customersselect) or by clustering them into strategic groups (firms that pursue similar

strategies and have similar assets, competencies, and other characteristics). In

either case, competitors will vary in terms of how intensely they compete.

Competitors should be analyzed along several dimensions, including their size,

growth and profitability, image, objectives, business strategies, organizationalculture, cost structure, exit barriers, and strengths and weaknesses.

Potential strengths and weaknesses can be identified by considering the

characteristics of successful and unsuccessful businesses, key customer

motivations, mobility barriers, and value-added components.

The competitive strength grid, which arrays competitors or strategic groups on

each of the relevant assets and competencies, provides a compact summary of

key strategic information.


12/18

2007JohnWiley&Sons


Ancillary Slides


13/18

2007JohnWiley&Sons


Induce your competitors not to

invest in those products, marketsand services where you expect to

invest the most that is the

fundamental role of strategy.

- Bruce HendersonFounder of BCG


14/18

2007JohnWiley&Sons


There is nothing more

exhilarating than to be shot atwithout result.

- Winston Churchill


15/18

2007JohnWiley&Sons


The best and fastest way to learn

a sport is to watch and imitate a

champion.

- J ean-Claude Killy,Skier


16/18

2007JohnWiley&Sons


There is one rule for industrialists

and that is: Make the best quality ofgoods possible at the lowest cost

possible, paying the highest wages

possible.- Henry Ford


17/18

2007JohnWiley&Sons


We often give our enemies the

means for our own destruction.

- Aesop


18/18

2007JohnWiley&Sons


In business, the competition will

bite you if you keep running, if youstand still, they will swallow you.

- William Knudsen

Ch03 Competitor Analysis

Documents

Transcript of Ch03 Competitor Analysis