Competitor Analysis. Course Objectives Explain What is Competitor Analysis List the Dimensions in...
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- Competitor Analysis
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- 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 Porters Five Forces Model of Competition Explain the Blind Spots in Competitor Analysis Explain What is Competitive Advantage
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- 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.
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- 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.
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- 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.
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- 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.
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- Introduction Competitor analysis is a driver of an organizations 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.
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- 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. Let us learn about Competitor Analysis in detail.
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- What is Competitor Analysis? Organizations always operate within a competitive industry environment. They do not exist in vacuum. Analyzing an organizations competitors helps an organization to discover its weaknesses, to identify opportunities for and threats to the organization from the industrial environment.
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- Environment Influences on Business Competitor Analysis should involve a thorough analysis of the macro- environment of a business. Thus, Competitor Analysis should analyze the four external influences on a competitors and his own business such as: Economic SocialPolitical Technological
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- 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 firms resources and capabilities with the competitive environment.
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- Competitor Analysis is crucial in designing effective strategies for the business. Competitor Analysis helps: In the value creation opportunities of a strategy. To assess the market including competitors from the stand point of a particular business. To make contingency plans for threats. To evaluate the impact of the external environment on a firms objectives and strategy. Benefits of Competitor Analysis
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- Steps of Competitor Analysis The following are the steps to be conducted for carrying out a Competitor Analysis: Let us now look at each in detail. 1Step 1: Identify Potential Competitors 2 Step 2: Carry out a thorough Competitor Profiling 3 Step 3: Understand Competitors Strategies 4 Step 4: Analysis of Strengths and Weaknesses against Competitors 5 Step 5: Assess Market Attractiveness 6 Step 6: Analyze Sources of Competitive Advantage 7 Step 7: Design Competitive Strategies
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- Market-based Analysis Hence, the competition faced by companies has been classified based on the degree of product substitution in the following categories: Let us look at each in detail. Industry Competition Brand Competition Product CompetitionGeneric Competition
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- Look at the given table which shows the Critical Success Factor (CSF) of a company for an Automobile Industry. CSF Analysis CSF for Automobile Industry Critical Success Factor CompanyCompetitors ABCD Engine Technology87975 Styling and Features98969 Brand Reputation108956 Strong Distribution Network 78888 Efficient Manufacturing 88779 Effective Marketing981054
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- National Environment: Analyzing the national environment needs an appraisal of whether the national framework helps in achieving competitive advantage in the globalized environment. National Environment
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- Threat of Substitute Products/Services Bargaining Power of Suppliers Bargaining Power of Buyers Rivalry among Current Competitors Risk of Entry by Potential Competitors Rivalry among Current Competitors Bargaining Power of Buyers Bargaining Power of Suppliers Threat of Substitute Products/Services 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.
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- 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 Searching Extensively for Competitors
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- 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. Mistaking Industry Boundaries
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- 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. 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. ManagementStudyGuide.com