Competitor

Companies that satisfy the same customer need

Define 'competitor'

Start by defining your own company as market leader, follower, challenger or market nicher The use variety of data to search competitive information

How do you conduct a competitor analysis?

Recorded data: Easily available in published form either internally or externally - annual reports etc. Observational data: Has to be actively sought and assembled from several sources - advertising campaigns etc. Opportunistic data: Requires a lot of planning and organization. Much of it is anecdotal coming from suppliers, customers and perhaps previous management of competitors - meetings with suppliers etc.

How do you find data on your competitor?

Market leader: Has the largest market share in the relevant product market Market follower: Is a runner-up firm willing to maintain its market share and not rock the boat. A follower can play the role of counterfeiter, cloner, imitator or adapter. Market challenger: Attacks the market leader and other competitors in an aggressive bid for more market share. Market nicher: serves small market segments not being served by larger firms. Key to niche market is specialization

Identify the four competitive positions

Offensive strategy: Used to build new or stronger market position and/or create competitive advantage Defensive strategy: Used to protect competitive advantage (rarely lead to creating advantage) - like position defence: erecting barriers

Name the two strategies you can use against your competitor

Frontal attack: The attacker matches its opponent's product, advertising, price and distribution. Flank attack: Identifying shifts that are causing caps to develop, then rushing to fill the gaps. Encirclement attack: Attempt to capture a wide slice of the enemy's territory trough a blitz - it means launching a grand offensive on several fronts. Bypass attack: The most indirect assault strategy is bypassing the enemy altogether and attacking easier markets to broaden the firm's resource base. Guerrilla attack: Consists of waging small, intermittent attacks to harass and demoralize the opponent and eventually secure permanent footholds.

What five attacks can market challenger use?

Objectives: What are they trying to achieve - and why? What drives each competitors' behavior? Are they satisfied with their achievements? Strategies: Which target markets are they going for? What is the strategic focus? Which marketing mix do they use? Capabilities: What are their marketing assets and capabilities - R&D? What are their financial resources? What are their strength and weaknesses? Predict future move: What are their likely reactions - what have they done in the past?

What four things should you consider when assessing your competitor?

Benchmarking: Learning from 'the best in class' - Copy or improve from the best practices to im-prove competitive performances.

What is 'benchmarking'?

Which role do they play in the market, What are their strategies and objectives, what are their strengths and weaknesses?

What reflection are important to make regarding your competitor?