Competitor Analysis Demo
Embed Size (px)
Transcript of Competitor Analysis Demo
Explain What is Competitor AnalysisList the Dimensions in Competitor AnalysisList the Objectives of Competitor AnalysisExplain Competitor Analysis in Strategic PlanningList the Benefits of Competitor AnalysisExplain the Steps of Competitor AnalysisExplain How to Identify Current & Potential CompetitorList the Sources of Potential CompetitorsExplain What is Competitor ProfilingExplain What is CSF AnalysisExplain SWOT Analysis for Competitor AnalysisExplain How to Conduct Environmental ScanningExplain Porters Five Forces Model of CompetitionExplain the Blind Spots in Competitor AnalysisExplain What is Competitive Advantage
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.
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.
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.
Hence, analyzing its competitors will help Schindler to discover its weaknesses, to identify opportunities for and threats to the organization from the industrial environment.
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.
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.
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.
Environment Influences on BusinessCompetitor 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:
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.
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
Steps of Competitor AnalysisThe 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 Competitors2Step 2: Carry out a thorough Competitor Profiling3Step 3: Understand Competitors Strategies4Step 4: Analysis of Strengths and Weaknesses against Competitors5Step 5: Assess Market Attractiveness6Step 6: Analyze Sources of Competitive Advantage7Step 7: Design Competitive Strategies
Market-based AnalysisHence, 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 CompetitionBrand CompetitionProduct CompetitionGeneric Competition
Look at the given table which shows the Critical Success Factor (CSF) of a company for an Automobile Industry.
CSF AnalysisCSF for Automobile IndustryCritical Success FactorCompanyCompetitorsABCDEngine Technology87975Styling and Features98969Brand Reputation108956Strong Distribution Network78888Efficient Manufacturing88779Effective Marketing981054
Macro -EnvironmentNational Environment:
Analyzing the national environment needs an appraisal of whether the national framework helps in achieving competitive advantage in the globalized environment.
Threat of Substitute Products/ServicesBargaining Power of SuppliersBargaining Power of BuyersRivalry among Current CompetitorsRisk of Entry by Potential Competitors
Risk of Entry by Potential CompetitorsRivalry 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.
17Searching Extensively for Competitors:
It is critical for conducting an effective Competitor Analysis that you do not overlook any competitor, both current as well as future competitors.
You should consider all competitors including the following:Product competitorsGeneric competitorsTotal budget competitors
Searching extensively for competitors
Searching Extensively for Competitors
Mistaking Industry BoundariesOne 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
19This is a DEMO Course On Competitor Analysis.Join MSG Premium Membership and Get Access to around 120 Courses.What Do you Get:View All Courses Online.Download Powerpoint Presentation for Each Course.Do the Knowledge Checks for Each Course.