Ch03 Competitor Analysis

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    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

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    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?

    Chapter 3 - Competitor Analysis PPT 3-2

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    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?

    Chapter 3 - Competitor Analysis PPT 3-3

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    Chapter 3 - Competitor Analysis PPT 3-4

    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?

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    Chapter 3 - Competitor Analysis PPT 3-5

    Competitor Identification

    Strategic Groups

    Pursue similar competitive strategiesHave similar characteristics

    Have similar assets and competencies

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    Chapter 3 - Competitor Analysis PPT 3-6

    Competitor Analysis

    Potential Competitors: Market expansion

    Product expansion

    Backward integration

    Forward integration

    Export assets or competencies

    Retaliatory or defensive strategies

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    Chapter 3 - Competitor Analysis PPT 3-7

    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

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    Chapter 3 - Competitor Analysis PPT 3-8

    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?

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    Chapter 3 - Competitor Analysis PPT 3-9

    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?

    Relevant Assets and Competencies

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    Chapter 3 - Competitor Analysis PPT 3-10

    4) -What are the significant value added

    components in the value chain?

    -Do any provide the potential to generate

    a competitive advantage?

    Relevant Assets and Competencies

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    Chapter 3 - Competitor Analysis PPT 3-11

    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.

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    Chapter 3 - Competitor Analysis PPT 3-12

    Ancillary Slides

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    Chapter 3 - Competitor Analysis PPT 3-13

    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

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    Chapter 3 - Competitor Analysis PPT 3-14

    There is nothing more

    exhilarating than to be shot atwithout result.

    - Winston Churchill

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    Chapter 3 - Competitor Analysis PPT 3-15

    The best and fastest way to learn

    a sport is to watch and imitate a

    champion.

    - J ean-Claude Killy,Skier

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    Chapter 3 - Competitor Analysis PPT 3-16

    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

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    Chapter 3 - Competitor Analysis PPT 3-17

    We often give our enemies the

    means for our own destruction.

    - Aesop

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    Chapter 3 - Competitor Analysis PPT 3-18

    In business, the competition will

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

    - William Knudsen