Ch04 Competition Analysis
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Transcript of Ch04 Competition Analysis
8/8/2019 Ch04 Competition Analysis
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20 0 5 J o hn Wile y & S o ns
ompetitor Analysis PPT 4-1
Competitor Analysis
Chapter Four
Copyright © 2005 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted inSection 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful.Requests for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibilityfor errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.
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ompetitor Analysis PPT 4-2
“Induce your competitors not toinvest in those products, markets
and services where you expect toinvest the most…that is the
fundamental role of strategy.”
- Bruce HendersonFounder of BCG
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ompetitor Analysis PPT 4-3
“There is nothing moreexhilarating than to be shot at
without result.”
- Winston Churchill
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ompetitor Analysis PPT 4-4
“The best and fastest way to learn
a sport is to watch and imitate achampion.”
- Jean-Claude Killy,Skier
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ompetitor Analysis PPT 4-5
Competitor Analysis
Strategic Groups
– Pursue similar competitive strategies– Have similar characteristics– Have similar assets and competencies
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ompetitor Analysis PPT 4-6
Competitor Analysis
Potential Competitors– Market expansion
– Product expansion
– Backward integration
– Forward integration
– Export assets or competencies
– Retaliatory or defensive strategies
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ompetitor Analysis PPT 4-7
Understanding the Competitors
Objectives andCommitmentObjectives and
Commitment
Image andPositioning
Image andPositioningSize, Growth
& ProfitabilitySize, Growth& Profitability
Current andPast Strategies
Current andPast Strategies
Strengths andWeaknessesStrengths andWeaknesses
Cost StructureCost Structure
Exit BarrriersExit Barrriers Organizationand CultureOrganizationand Culture
Competitor Actions
Competitor Actions
Figure 4.3
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ompetitor Analysis PPT 4-8
Relevant Assets and Competencies
1) What businesses have been successful over time?
What assets or competencies contributedto their success?
What businesses have had chronically lowperformance?
Why?
What assets or competencies do they lack?
Figure 4.4
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ompetitor Analysis PPT 4-9
2) What are the key customer motivations?What is really important to the customer?
3) What are the large value-added parts of theproduct or service?
What are the large cost components?
Relevant Assets and Competencies
Figure 4.4
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ompetitor Analysis PPT 4-10
4) Consider the components of the value chain.Do any provide the potential to generate a
competitive advantage?
Relevant Assets and Competencies
Figure 4.4
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ompetitor Analysis PPT 4-11
The Value Chain
Firm Infrastructure
Human Resource Management
Procurement
Technology Development
&
Source: Reprinted with permission © 1985 Michael Porter Figure 4.5
S u p p o rt
Ac t ivit ie s
Primary Activities
M a r g i n
Margi n
Procurement
Inbound
LogisticsOperations Outbound
Logistics
Marketing
Sales
Service
Human Resource Management
Firm Infrastructure
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ompetitor Analysis PPT 4-12
Key Learnings
• Competitors can be identified by customer choice (the set from whichcustomers select) or by clustering them into strategic groups, (firms thatpursue similar strategies and have similar assets, competencies, and other characteristics). In either case, competitors will vary in terms of howintensely they compete.
• Competitors should be analyzed along several dimensions, including their size, growth and profitability, image, objectives, business strategies,organizational culture, cost structure, exit barriers, and strengths andweaknesses.
• Potential strengths and weaknesses can be identified by considering thecharacteristics of successful and unsuccessful businesses, key customer motivations, and value-added components.
• The competitive strength grid, which arrays competitors or strategicgroups on each of the relevant assets and competencies, provides a
compact summary of key strategic information.
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ompetitor Analysis PPT 4-13
Ancillary Slides
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ompetitor Analysis PPT 4-14
“There is one rule for industrialistsand that is: Make the best quality of goods possible at the lowest cost
possible, paying the highest wagespossible.”
- Henry Ford
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ompetitor Analysis PPT 4-15
“We often give our enemies themeans for our own destruction.”
- Aesop
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ompetitor Analysis PPT 4-16
“In business, the competition willbite you if you keep running, if youstand still, they will swallow you.”
- William Knudsen