Competitor analysis

Chapter 4
 Competitor analysis
• In the recent times the Business
environment has changed tremendously
• The degree of competition has also
increased immensely.
• Organizational strategies need to be
modified to match with competition and if
possible to out beat them.
• Therefore the critical evaluation of
competitive environment is crucial for the
success of an organization.
 Sources of information
To analyze competitive environment ,it is
necessary to collect information. There are
basically 2 sources to collect such
information.
• Secondary
• Primary
 Sources of information
• Secondary data, It refers to information collected by someone
else.
1. Internal sources (database of co)
2. Newspaper
3. Annual reports
4. Business journals
5. News release
6. Promotional Literature
7. Trade periodicals
8. Consultants
9. Trade associations
10. Government sources
11. Internet
And much more …
 Sources of information

• Primary data refers to data collected

directly from the market place firsthand.
1. Sales force
2. Employees
3. Suppliers
4. Consultants
5. Research & Development
 Product Feature Matrix
For better understanding of the competitors company
should prepare a competitors product feature matrix as
per below steps:-
1. Define type of Industry (nature scope)
2. Determine who are competitors
3. Determine who are its customers & their expectations
4. Determine what are key success factors
5. Give Weigtage to each success factor
6. Rank each competitor on each of the key success
factor
7. Assess the overall strength of competitor relative to
each factor.
Such an evaluation helps company in understnading where
do they stand in the market compared to its
competitor.
 Assessing Competitor’s Objective &
strategies
To understand competitors better company needs to create
detailed profile of each of its major competitors with
below details .
1. Background
2. Financials
3. Products
4. Marketing
5. Facilities
6. Personnel
7. Corporate & marketing strategies.
8. Media scanning
9. New competitors (future threats )
 How Company fights competition?
• Marketing strategy
• Differential Advantage
• Determination of key Areas
• Developing core competences
• Core Products
• Strategic orientations based on Differential
advantage & business scope
 Product positioning
• Positioning Placing a product at a certain point or
location within a market in the minds of prospective
buyers. Distinguishes firm’s offerings from its
competitors’.
• May develop a positioning map and reposition product
as necessary