Competitor Analysis
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Competitor analysis
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Competitor Analysis
Author : Jim Riley Last updated: Sunday 23 September, 2012 Introduction Competitor Analysis is an important part of the strategic planning process. This revision note outlines the main role of, and steps in, competitor analysis Why bother to analyse competitors? Some businesses think it is best to get on with their own plans and ignore the competition. Others become obsessed with tracking the actions of competitors (often using underhand or illegal methods). Many businesses are happy simply to track the competition, copying their moves and reacting to changes. Competitor analysis has several important roles in strategic planning: • To help management understand their competitive advantages/disadvantages relative to competitors • To generate understanding of competitors’ past, present (and most importantly) future strategies • To provide an informed basis to develop strategies to achieve competitive advantage in the future • To help forecast the returns that may be made from future investments (e.g. how will competitors respond to a new product or pricing strategy? Questions to ask What questions should be asked when undertaking competitor analysis? The following is a useful list to bear in mind: • Who are our competitors? (see the section on identifying competitors further below) • What threats do they pose? • What is the profile of our competitors? • What are the objectives of our competitors? • What strategies are our competitors pursuing and how successful are these strategies? • What are the strengths and weaknesses of our competitors? • How are our competitors likely to respond to any changes to the way we do business? S ources of information for competitor analysis Davidson (1997) described how the sources of competitor information can be neatly grouped into three categories: • Recorded data: this is easily available in published form either internally or externally. Good examples include competitor annual reports and product brochures; • Observable data: this has to be actively sought and often assembled from several sources. A good example is competitor pricing; • Opportunistic data: to get hold of this kind of data requires a lot of planning and organisation. Much of it is “anecdotal”, coming from discussions with suppliers, customers and, perhaps, previous management of competitors.
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Related study notes S trategic Models & Analysis Boston Matrix Benchmarking Competitor Analysis Core Competencies Five Forces Model GE Industry Matrix McKinsey Growth Pyramid PEST Analysis Strategic Audit SWOT Analysis Value Chain Analysis S trategic Planning What is Strategy? Competitive Advantage Mission Objectives Strategy and Marketing Strategic Resources Vision Balanced Scorecard Introduction Balanced Scorecard Perspectives Managing Change Introduction Force Field Analysis (Lewin) Resistance & Barriers Implementation Corporate S ocial Responsibility Corporate Social Responsibilty - Introduction Corporate Social Responsibilty - Issues Risk Management Introduction Risk Management Planning & Action
www.tutor2u.net/business/strategy/competitor_analysis.htm
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5/17/13
Competitor analysis
Global Business Introduction Competitiveness Global Strategy Globalisation S takeholders Introduction Interests and Power E conomic E nvironment Economic Growth Business Cycle Business & Growth Interest Rates Technological Change Leadership Role of leadership Leadership models & styles Growth S trategy
The table below lists possible sources of competitor data using Davidson’s categorisation: Recorded Data Annual report & accounts Press releases Newspaper articles Analysts reports Regulatory reports Government reports Presentations / speeches Observable Data Pricing / price lists Advertising campaigns Promotions Tenders Patent applications Opportunistic Data Meetings with suppliers Trade shows Sales force meetings Seminars / conferences Recruiting ex-employees Discussion with shared distributors Social contacts with competitors
In his excellent book [Even More Offensive Marketing], Davidson likens the process of gathering competitive data to a jigsaw puzzle. Each individual piece of data does not have much value. The important skill is to collect as many of the pieces as possible and to assemble them into an overall picture of the competitor. This enables you to identify any missing pieces and to take the necessary steps to collect them. What businesses need to know about their competitors The tables below lists the kinds of competitor information that would help businesses complete some good quality competitor analysis. You can probably think of many more pieces of information about a competitor that would be useful. However, an important challenge in competitor analysis is working out how to obtain competitor information that is reliable, up-to-date and available legally(!). What businesses probably already know their competitors Overall sales and profits Sales and profits by market Sales by main brand Cost structure Market shares (revenues and volumes) Organisation structure Distribution system Identity / profile of senior management Advertising strategy and spending Customer / consumer profile & attitudes Customer retention levels
Business Culture & E thics Introduction to Ethics Culture - Introduction Culture - Types Culture - Role in Change
What businesses would really like to know about competitors Sales and profits by product Relative costs Customer satisfaction and service levels Customer retention levels Distribution costs New product strategies Size and quality of customer databases Advertising effectiveness Future investment strategy Contractual terms with key suppliers Terms of strategic partnerships Download for Android Download for IOS
Other Business S tudy Resources You Might Like on tutor2u www.tutor2u.net/business/strategy/competitor_analysis.htm
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5/17/13 Competitor analysis Other Business S tudy Resources You Might Like on tutor2u
S tarting a Business Sources of Finance for a Startup Franchising Cash Flow Forecasting for a Startup Creating & Protecting Business Ideas Startups and Understanding the Market Market Research for a Startup Locating the Startup Business Choosing a Legal Structure for a Startup Employing People in a Startup Generating and Protecting a Business Idea Using Breakeven in Decision-Making
F inance Revenues Breakeven Basics Costs, Revenues and Profits Business Costs Using Budgets Using Breakeven in Decision-Making Investment Appraisal Basics Financial Strategies Measuring and Improving Profit Improving Cash Flow Working Capital Balance Sheet Income Statement Financial Efficiency Ratios Profitability Ratios and ROCE Liquidity Ratios Gearing Business Organisation Basics of Business Growth Business Activities Legal Structure Basics Franchising Sole Traders and Partnerships Limited Companies Generating and Protecting a Business Idea Organisational Structures Operations Operational Objectives Critical Path Analysis Scale and Resource Mix Lean Production Capacity Management Customer Service Basics Managing Quality Operational Decision-making Using Technology in Operations Working with Suppliers Business S trategy Leadership styles Business Culture Change Management
Marketing Competition Products & Brands Place (Distribution) Promotion Pricing Price Elasticity of Demand
People Working in Teams Communication Basics Communication Methods Workforce Planning Recruitment, Selection & Training Employee Motivation Organisational Structures
E conomic E nvironment Economic Sectors Government Spending & Taxation Inflation Unemployment Interest Rates & Monetary Policy
Competitor Analysis
www.CompetitiveIntelligence.co.uk Competitive intelligence research. CI strategy: AWARE - the UK experts
Add your comments and share this study note:
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Competitor analysis
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Competitor Analysis
Author : Jim Riley Last updated: Sunday 23 September, 2012 Introduction Competitor Analysis is an important part of the strategic planning process. This revision note outlines the main role of, and steps in, competitor analysis Why bother to analyse competitors? Some businesses think it is best to get on with their own plans and ignore the competition. Others become obsessed with tracking the actions of competitors (often using underhand or illegal methods). Many businesses are happy simply to track the competition, copying their moves and reacting to changes. Competitor analysis has several important roles in strategic planning: • To help management understand their competitive advantages/disadvantages relative to competitors • To generate understanding of competitors’ past, present (and most importantly) future strategies • To provide an informed basis to develop strategies to achieve competitive advantage in the future • To help forecast the returns that may be made from future investments (e.g. how will competitors respond to a new product or pricing strategy? Questions to ask What questions should be asked when undertaking competitor analysis? The following is a useful list to bear in mind: • Who are our competitors? (see the section on identifying competitors further below) • What threats do they pose? • What is the profile of our competitors? • What are the objectives of our competitors? • What strategies are our competitors pursuing and how successful are these strategies? • What are the strengths and weaknesses of our competitors? • How are our competitors likely to respond to any changes to the way we do business? S ources of information for competitor analysis Davidson (1997) described how the sources of competitor information can be neatly grouped into three categories: • Recorded data: this is easily available in published form either internally or externally. Good examples include competitor annual reports and product brochures; • Observable data: this has to be actively sought and often assembled from several sources. A good example is competitor pricing; • Opportunistic data: to get hold of this kind of data requires a lot of planning and organisation. Much of it is “anecdotal”, coming from discussions with suppliers, customers and, perhaps, previous management of competitors.
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Order by
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Search tutor2u
Related study notes S trategic Models & Analysis Boston Matrix Benchmarking Competitor Analysis Core Competencies Five Forces Model GE Industry Matrix McKinsey Growth Pyramid PEST Analysis Strategic Audit SWOT Analysis Value Chain Analysis S trategic Planning What is Strategy? Competitive Advantage Mission Objectives Strategy and Marketing Strategic Resources Vision Balanced Scorecard Introduction Balanced Scorecard Perspectives Managing Change Introduction Force Field Analysis (Lewin) Resistance & Barriers Implementation Corporate S ocial Responsibility Corporate Social Responsibilty - Introduction Corporate Social Responsibilty - Issues Risk Management Introduction Risk Management Planning & Action
www.tutor2u.net/business/strategy/competitor_analysis.htm
1/5
5/17/13
Competitor analysis
Global Business Introduction Competitiveness Global Strategy Globalisation S takeholders Introduction Interests and Power E conomic E nvironment Economic Growth Business Cycle Business & Growth Interest Rates Technological Change Leadership Role of leadership Leadership models & styles Growth S trategy
The table below lists possible sources of competitor data using Davidson’s categorisation: Recorded Data Annual report & accounts Press releases Newspaper articles Analysts reports Regulatory reports Government reports Presentations / speeches Observable Data Pricing / price lists Advertising campaigns Promotions Tenders Patent applications Opportunistic Data Meetings with suppliers Trade shows Sales force meetings Seminars / conferences Recruiting ex-employees Discussion with shared distributors Social contacts with competitors
In his excellent book [Even More Offensive Marketing], Davidson likens the process of gathering competitive data to a jigsaw puzzle. Each individual piece of data does not have much value. The important skill is to collect as many of the pieces as possible and to assemble them into an overall picture of the competitor. This enables you to identify any missing pieces and to take the necessary steps to collect them. What businesses need to know about their competitors The tables below lists the kinds of competitor information that would help businesses complete some good quality competitor analysis. You can probably think of many more pieces of information about a competitor that would be useful. However, an important challenge in competitor analysis is working out how to obtain competitor information that is reliable, up-to-date and available legally(!). What businesses probably already know their competitors Overall sales and profits Sales and profits by market Sales by main brand Cost structure Market shares (revenues and volumes) Organisation structure Distribution system Identity / profile of senior management Advertising strategy and spending Customer / consumer profile & attitudes Customer retention levels
Business Culture & E thics Introduction to Ethics Culture - Introduction Culture - Types Culture - Role in Change
What businesses would really like to know about competitors Sales and profits by product Relative costs Customer satisfaction and service levels Customer retention levels Distribution costs New product strategies Size and quality of customer databases Advertising effectiveness Future investment strategy Contractual terms with key suppliers Terms of strategic partnerships Download for Android Download for IOS
Other Business S tudy Resources You Might Like on tutor2u www.tutor2u.net/business/strategy/competitor_analysis.htm
2/5
5/17/13 Competitor analysis Other Business S tudy Resources You Might Like on tutor2u
S tarting a Business Sources of Finance for a Startup Franchising Cash Flow Forecasting for a Startup Creating & Protecting Business Ideas Startups and Understanding the Market Market Research for a Startup Locating the Startup Business Choosing a Legal Structure for a Startup Employing People in a Startup Generating and Protecting a Business Idea Using Breakeven in Decision-Making
F inance Revenues Breakeven Basics Costs, Revenues and Profits Business Costs Using Budgets Using Breakeven in Decision-Making Investment Appraisal Basics Financial Strategies Measuring and Improving Profit Improving Cash Flow Working Capital Balance Sheet Income Statement Financial Efficiency Ratios Profitability Ratios and ROCE Liquidity Ratios Gearing Business Organisation Basics of Business Growth Business Activities Legal Structure Basics Franchising Sole Traders and Partnerships Limited Companies Generating and Protecting a Business Idea Organisational Structures Operations Operational Objectives Critical Path Analysis Scale and Resource Mix Lean Production Capacity Management Customer Service Basics Managing Quality Operational Decision-making Using Technology in Operations Working with Suppliers Business S trategy Leadership styles Business Culture Change Management
Marketing Competition Products & Brands Place (Distribution) Promotion Pricing Price Elasticity of Demand
People Working in Teams Communication Basics Communication Methods Workforce Planning Recruitment, Selection & Training Employee Motivation Organisational Structures
E conomic E nvironment Economic Sectors Government Spending & Taxation Inflation Unemployment Interest Rates & Monetary Policy
Competitor Analysis
www.CompetitiveIntelligence.co.uk Competitive intelligence research. CI strategy: AWARE - the UK experts
Add your comments and share this study note:
www.tutor2u.net/business/strategy/competitor_analysis.htm
3/5
5/17/13
ALSO ON TUTOR2U
Competitor analysis
AROUND THE WEB What's this?
Mission and Strategy Virtue Ethics
5 hours ago
4 hours ago 5 hours ago
POPSUGAR Shout Out: The Best Light Bridal-Shower Bites PopSugar Living Nudist Resorts in Thailand
eHow
Monopoly & economic efficiency UK Pattern of Trade
1 comment
Elisha Cuthbert Voted Maxim Magazine's 'Most Beautiful' First To Know
3
0 comments Leave a message...
Share
Newest
Community
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C o m m e n t fe e d
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Economics Business Studies Govt & Politics Sociology IB Diploma History Law Religious Studies
Subject Resource Blogs Professional Development Student Events Buy Teaching Resources Digital Magazine Login Teacher Communities Creative Teaching Ideas Jobs & Vacancies Keep in Touch
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Refine S earch by S ubject A Level Economics Business Studies GCSE Economics
Geography Give It A Go! History Law
IB Diploma Politics Religious Studies Sociology Order S earch Results By
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www.tutor2u.net/business/strategy/competitor_analysis.htm
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Competitor analysis
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Richard Schofield @SchoeyEconomics 4h Lower 6th during enrichment would any pupils like to write an essay for the Royal Economics Society competition see tutor2u.net
Retweeted by Jim Riley Expand
Geoff Riley @tutor2u_econ 54m The Geoff Riley Daily is out! paper.li/tutor2u_econ ▸ Top stories today via @EconomicsSTP @BBCNewsGraphics @D_Blanchflower
Expand
Give It A Go! @t2uGiveItAGo 4h New blog: Luck of the Draw Starter/ Plenary - Is it a starter or a plenary. Well, its both!At the start of the le... ow.ly/2wWyI7
Retweeted by Jim Riley Expand
David Carpenter @dizzleeducation 5h @tutor2u_econ for Edexcel 30-marker it’s only 3 KAA points and 3 Eval points that will get marked, 4 marks each. Final 6 marks for def/dia
Retweeted by Geoff Riley Expand
Alice dunn @aliceedunn 4h @tutor2u_econ @tutor2u should def not advertise this at top of your website when were trying to revise #distraction pic.twitter.com/EEE7lMaFK9
Retweeted by Jim Riley Show Photo
Management Today @MT_editorial Surely a contender for the least-glamorous job. Going beyond the u-bend - a day in the life of a sewer flusher managementtoday.co.uk/features/11790…
Retweeted by Geoff Riley Expand
5h
Graham Prior @tutor2u_graham @tutor2u_econ @tutor2u_jon Jon and I are currently refuelling the teaching and learning train!
Retweeted by Jim Riley Expand
5h
Geoff Riley @tutor2u_econ 6h hold back the news that a pre-publication version of his new book on macroeconomics was in my bag..and it is really very good! @TimHarford
Mo Bunter @HSFCBUS
Tweet to @tutor2u
5h
Geoff Riley @tutor2u_econ 6h Sat in a New Zealand airport lounge & a lady was chatting
Tweet to @tutor2u_econ
AS#404: NO AD FOUND IN ROTATION tutor2u Home Page | Online Store | About tutor2u | Copyright Info | Your Privacy | Terms of Use
Working with Our Partners Zondle - Games for Learning | Vue Cinemas | Moneypenny | Nexcess | Really Simple Systems Boston House | 214 High Street | Boston Spa | West Yorkshire | LS23 6AD | Tel +44 0844 800 0085 | Fax +44 01937 529236 Company Registration Number: 04489574 | VAT Reg No 816865400 tutor2u is proud to sponsor TABS Cricket Club and the Wetherby Cricket League as part of its commitment to invest in local junior sport
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