COMPETITOR ANALYSIS
COMPETITOR ANALYSISPREPARED & PRESENTED
BY,ASHOK.MDEFINITIONCompetitor analysis is an assessment of the
strengths and weaknesses of current and potentialcompetitors. This
analysis provides both an offensive and defensive strategic context
to identify opportunities and threats.
COMPETITOR ARRAY
Define your industry - scope and nature of the
industry.Determine who your competitors are.Determine who your
customers are and what benefits they expect.Determine what the key
success factors are in your industry.Rank the key success factors
by giving each one a weighting - The sum of all the weightings must
add up to one.Rate each competitor on each of the key success
factors.Multiply each cell in the matrix by the factor
weighting.
EXAMPLEKey IndustrySuccess FactorsWeightingCompetitor#1
ratingCompetitor#1 weightedCompetitor#2 ratingCompetitor#2
weighted1 - Extensive distribution.462.431.22 - Customer
focus.341.251.53 - Economies of scale.23.63.64 - Product
innovation.17.74.4Totals1.0204.9153.7
COMPETITOR PROFILING
BackgroundFinancialsProductsMarketingFacilitiesPersonnelCorporate
strategiesBACKGROUNDLocation of offices and plants.History - key
personalities, dates, events, and trends.Ownership, corporate
governance, and organizational structure.
FINANCIALSP-E ratios,dividend policy, and profitability.Various
financial ratios, liquidity, and cash flow.Profit growth
profile.
PRODUCTSProducts offered and product portfolio balance.New
products developed, new product success rate and R&D
strengths.Brands, brand loyalty and brand awareness.Patents and
licenses.Quality control conformance.
MARKETINGSegments served, market shares, customer base and
growth rate.Promotional mix, promotional budgets, advertising
themes, ad agency used, sales force success rate and online
promotional strategy.Distribution channels used and geographical
coverage.Pricing, discounts and allowances.
FACILITIESPlant capacity, capacity utilization rate, age of
plant, plant efficiency and capital investment.Location and
shipping logistics.PERSONNELNumber of employees and skill
sets.Strength of management and management style.Compensation,
benefits, employee morale and retention rates.
CORPORATE STRATEGIES
Objectives, mission statement, growth plans, acquisitions, and
divestituresANALYSIS OF NEW COMPETITORCompanies competing in a
related product/market.Companies using related
technologies.Companies already targeting your prime market segment
but with unrelated products.Companies from other geographical areas
and with similar products.New start-up companies organized by
former employees and/or managers of existing companies.
THANK YOU
