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An overview of the competition analysis for your marketing strategy. Learn to understand your competitors, SWOT analysis results, product positioning, branding, and tips to conquer the competition
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ì Competition Analysis A Best Prac+ce Guide For Your Marke+ng Strategy Process
By: Wayne E. Chen
© 2011 – Wayne Chen
Learning Objective
ì Understand the compe++on landscape
ì What is S.W.O.T.
ì Develop internal and external analysis
ì S.W.O.T. results and ac+ons
ì Market share research
ì Product posi+oning & map
© 2011 – Wayne Chen
Competition Analysis
ì Develop a plan to beat your compe++on ì Reduce expenses ì Get crea+ve ì Deliver customer service
ì Developing A SWOT Chart ì Self vs. Compe+tors
© 2011 – Wayne Chen
S.W.O.T. Chart
Strengthens Weakness
Opportuni+es Threats
© 2011 – Wayne Chen
S.W.O.T. COMPARISON
ì What is our place in the market place? ì Market size and whole ì Financial posi+on ì Historical performance and
reputa+on
ì Resource comparison ì Human Capital / Sales ì Technology capability ì Research & Development ì Legal / Poli+cal
© 2011 – Wayne Chen
Identify Strengthens
ì What are your assets?
ì Which asset is the strongest?
ì What makes you different?
ì Do you have talented teammates?
ì Do you have a broad customer base? Is it growing?
ì What unique resources do you have in your arsenal?
ì Are you debt free?
ì Do you have strong partners and supporters?
ì Will you be cash posi+ve in the short-‐term?
ì Do you have specific sales, technical or marke+ng exper+se?
ì Is your business, product or service scalable?
ì Can you capitalize on economies of scale?
© 2011 – Wayne Chen
Identify Weaknesses
ì What can you improve? How quickly?
ì What necessary exper+se, or technology do you lack?
ì Do you have adequate cash flow to sustain you for 3-‐6-‐12 months?
ì What is your current burn-‐rate?
ì Do you have outdated technology or service?
ì Do you have strong profit levels?
ì Do you have a well of new ideas?
ì Can you execute your new ideas quickly and cost-‐effec+vely?
ì What is your marke+ng and opera+ng cost structure?
ì Do you have too much debt?
ì Are you overinvested?
© 2011 – Wayne Chen
Identify Opportunities
ì What external changes present interes+ng opportuni+es?
ì What trends might impact your industry?
ì Is there new talent and where?
ì Can repurposing your product extract new value?
ì Can you reduce your service or product offering with new product or cost models?
ì Can you fill the gap of your compe+tors?
ì What partnerships can be formed?
ì Are there trends emerging that you can profitably service?
ì Can you reach new markets?
ì Can you capitalize on your consumer needs?
© 2011 – Wayne Chen
Identify Threats
ì Is there a be^er equipped compe+tor in your market?
ì How strong is their execu+ve team?
ì How happy is your staff?
ì What if your customers don’t pay?
ì How much run-‐way do you have?
ì Is your IP properly secured?
ì Do you have a strong customer base?
ì What is your cash to debt ra+o?
ì What if your service or product is pirated or hacked?
ì Are you dependent on key suppliers?
© 2011 – Wayne Chen
Types of Competitors
You
REPLACEMENT
DIRECT
POTENTIAL INDIRECT
REGULATORY
© 2011 – Wayne Chen
Direct Competitor
ì Offer the same products with the same game
ì Generate the same revenue and have the same channel ì Head-‐to-‐head
ì More generic = for everyone
ì Compe+ng solely on price
© 2011 – Wayne Chen
Indirect Competitor
ì Offer the same products but have a different goal
ì Does not drive revenue the same way
ì Content marke+ng ma^ers ì Strong marke+ng ì Large adver+sing budgets
© 2011 – Wayne Chen
Replacement Competitor
ì Consumer can choose your product
ì Same resources they could have commi^ed to your product
ì Must listen and interview consumers to gain why they go for the alterna+ve
© 2011 – Wayne Chen
Regulatory Competitor
ì Local, State and Federal agency
ì Regula+ons ì Statutory ì Policy ì Alliance
ì Lobbyist
ì Poli+cal
© 2011 – Wayne Chen
Leverage S.W.O.T. Analysis
ì Take ac+on on results
ì All this data enables you to do the following: ì Improve your strengths ì Eliminate weaknesses ì Leverage opportuni+es ì Defend your business from
threats
© 2011 – Wayne Chen
Take Action
ì Guideline: ì What can I do to make my
strengths even more powerful?
ì What do I need to change to eliminate or minimize my weaknesses?
ì How can I use the opportuni+es to my advantage?
ì What should I do to protect my business from emerging threats?
ì S.W.O.T. Analysis Trap ì Jus+fy ac+ons and decisions
ì Objec+ve on ì Previous decisions ì Weaknesses and threats ì Internal reflec+on
© 2011 – Wayne Chen
Potential Competitor
ì Service and products that may appear at some point in the future ì Direct or indirect
ì Can impact your business
ì Monitor purchasing habits
ì Environmental and industry changes
ì Ver+cal growth and expansion
© 2011 – Wayne Chen
Market Shares -‐ Players
ì Market share leverage is a key concept to consider when examining market shares within an industry
ì The bigger the pie, the bigger the profit ì Produc+on costs per unit
ì Crea+vity through small shares
© 2011 – Wayne Chen
Product Perceptual Map
ì A graphic way to view and compare your product against the compe+tors’
ì Grid by Price and Quality ì Determining known
markets and un-‐served
ì Percep+ons importance ì Quality, strengthen, and
appeal
© 2011 – Wayne Chen
Product Positioning
ì Product evolu+on
ì Unique Selling Proposi+on (USP)
ì Product Image
ì Product Posi+oning ì The importance of produc+on
percep+on vs. physical a^ributes
© 2011 – Wayne Chen
Ten Ways To Conquer Product Positioning
1. Posi+oning begins with the name 2. Unique products require new names 3. Be the first to own the word 4. Reinforce the original concept across all ac+vi+es 5. Introduce a new brand not blurring the original 6. Establish a new category and brands that are tough to
beat 7. Find an open posi+on in the consumer’s mind 8. Reposi+on the compe++on to undercut leader’s product 9. Be consistent with your posi+on always
© 2011 – Wayne Chen
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