COMPETITION COMPETITION

ANALYSISANALYSIS: BEYOND : BEYOND DESCRIPTIONDESCRIPTION

MICHAEL W. PICZAKMICHAEL W. PICZAK

JANUARY 2004JANUARY 2004

HOW WE DOHOW WE DO

AMONG THE WORST THINGS DONE AMONG THE WORST THINGS DONE IN A BUSINESS PLANIN A BUSINESS PLAN

LONG ON DESCRIPTIONLONG ON DESCRIPTIONLEAN ON ANALYSISLEAN ON ANALYSISNO WRITE UP/DISCUSSIONNO WRITE UP/DISCUSSION

METHODSMETHODS

WEB VISITSWEB VISITSFIELD VISITS/SHOPPING THE BAD FIELD VISITS/SHOPPING THE BAD

GUYSGUYSNEWSPAPER ACCOUNTSNEWSPAPER ACCOUNTSUSING YOUR SURVEY TO COMPARE USING YOUR SURVEY TO COMPARE

COMPETITION TO YOUCOMPETITION TO YOUCHECK OUT CORPORATE IMAGE CHECK OUT CORPORATE IMAGE

MATERIALSMATERIALS

YOUR BASIC PREMISEYOUR BASIC PREMISE

SURVIVAL OF THE JUNGLE APPLIESSURVIVAL OF THE JUNGLE APPLIESTHE COMPETITION WILL DO THE COMPETITION WILL DO

ANYTHING TO SUCCEEDANYTHING TO SUCCEEDTHERE IS ACTION AND REACTIONTHERE IS ACTION AND REACTIONNOONE REALLY CARES EXCEPT YOU NOONE REALLY CARES EXCEPT YOU

AND YOUR MOTHERAND YOUR MOTHER

NICE NICE GUY…GUY…

CAPTURING DESCRIPTIONCAPTURING DESCRIPTION

IN A TABLEIN A TABLETHEMTHEMSTRENGTHSSTRENGTHSWEAKNESSESWEAKNESSESYOUYOUNARRATIVENARRATIVE

CAPTURING ANALYSISCAPTURING ANALYSIS

ANALYSIS IS A BREAKING DOWN PROCESSANALYSIS IS A BREAKING DOWN PROCESS INVOLVES COMPARISONS WITH WHAT IS INVOLVES COMPARISONS WITH WHAT IS

RELATIVE TO WHAT COULD BERELATIVE TO WHAT COULD BE LOOK FOR SIMILARITIES AND DIFFERENCESLOOK FOR SIMILARITIES AND DIFFERENCES THINK OF A FOOTBALL COACH ANALYZING THINK OF A FOOTBALL COACH ANALYZING

A RECENT LOSS (QUARTER BY QUARTER, A RECENT LOSS (QUARTER BY QUARTER, CATEGORY BY CATEGORY, MINUTE BY CATEGORY BY CATEGORY, MINUTE BY MINUTE, ETC.)MINUTE, ETC.)

WHAT IT LOOKS LIKEWHAT IT LOOKS LIKE

COMPETITION ANALYSISCOMPETITION ANALYSIS

The purpose of this analysis is to assess The purpose of this analysis is to assess the strengths and weaknesses of the strengths and weaknesses of competitors as defined by Your Fabulous competitors as defined by Your Fabulous Restaurant. Description of competitors Restaurant. Description of competitors will be followed by analysis looking for will be followed by analysis looking for key success factors, competitive key success factors, competitive advantage and identification of advantage and identification of distinctive competencies.distinctive competencies.

THE CENTRAL EXHIBIT ITHE CENTRAL EXHIBIT ICOMPETITOR STRENGTHS WEAKNESSES

ABC Fine Dining662 West Alameda DriveBurbank, CA

EstablishedGood reputation

parking limiteddirtyservice questionable

XYZ Diner1009 West Hollywood AvenueSanta Monica, CA

Good valueGood pricesparking

service spotty

MNO Foodstuffs123 North Westwood DriveBrentwood, CA

broad menuvalue pricinggo the extra mile

limited hourstries to be everything to everyoneservice poor

You Kill It, We Cook it Grill 111 North Lincoln HighwayLa Jolla, CA

tasty foodcustomer participatespart of meal is show

appeals to select marketservice uneven/poormust bring own raw stock

Your Fabulous Restaurant111 In the Heart of Town LanePasadena, CA

25 parking spacescreative cuisinepresentation of mealsuperior serviceworld’s best bourbon baked wings

unknown in communityrelatively small floor spaceaccess from street blocked

THE CENTRAL EXHIBIT THE CENTRAL EXHIBIT IIII

THE CENTRAL EXHIBIT IIITHE CENTRAL EXHIBIT III

THE CENTRAL EXHIBIT IVTHE CENTRAL EXHIBIT IV

ENSURING THE READER SEES ENSURING THE READER SEES WHAT THEY ARE SUPPOSED TO WHAT THEY ARE SUPPOSED TO

SEESEENarrative/DiscussionNarrative/Discussion

The purpose of this section is to The purpose of this section is to highlight key features of the various highlight key features of the various competitors’ operations with a view competitors’ operations with a view to identifying key success factors, to identifying key success factors, possible sources of competitive possible sources of competitive analysis and distinctive analysis and distinctive competencies.competencies.

FINDING COMPETITIVE FINDING COMPETITIVE ADVANTAGEADVANTAGE

5 SWEEPS THROUGH THE TABLE5 SWEEPS THROUGH THE TABLE LOOKING FOR COMMONALITIES ACROSS ALL LOOKING FOR COMMONALITIES ACROSS ALL

COMPETITORS IN STRENGTHS = KSFs or Winning COMPETITORS IN STRENGTHS = KSFs or Winning Formula or Conventional Wisdom of How IT is doneFormula or Conventional Wisdom of How IT is done

LOOKING FOR DIFFERENCES BETWEEN COMPETITORS’ LOOKING FOR DIFFERENCES BETWEEN COMPETITORS’ STRENGTHS AND YOUR STRENGTHS = CASTRENGTHS AND YOUR STRENGTHS = CA11

LOOKING FOR DIFFERENCES BETWEEN COMPETITORS’ LOOKING FOR DIFFERENCES BETWEEN COMPETITORS’ WEAKNESSES AND YOUR WEAKNESSES = CAWEAKNESSES AND YOUR WEAKNESSES = CA22

LOOKING FOR DIFFERENCES BETWEEN COMPETITORS’ LOOKING FOR DIFFERENCES BETWEEN COMPETITORS’ WEAKNESSES AND YOUR STRENGTHS = CAWEAKNESSES AND YOUR STRENGTHS = CA33

FINDING SOMETHING THAT YOU DO THAT NOONE ELSE FINDING SOMETHING THAT YOU DO THAT NOONE ELSE DOES = DISTINCTIVE COMPETENCEDOES = DISTINCTIVE COMPETENCE

WHOSE SIGNATURE WHOSE SIGNATURE IS ALL OVER THIS?IS ALL OVER THIS?

NECESSARY COMPONENTS NECESSARY COMPONENTS OF A BEER COMMERCIAL…OF A BEER COMMERCIAL…

KEY SUCCESS FACTORSKEY SUCCESS FACTORS ACCEPTED PRACTICES WITHIN THE INDUSTRY THAT ACCEPTED PRACTICES WITHIN THE INDUSTRY THAT

REPRESENT REPRESENT MINIMUMMINIMUM THINGS THAT EVERYONE THINGS THAT EVERYONE DOESDOES

STRAYING FROM THESE IS DONE AT YOUR PERIL OR STRAYING FROM THESE IS DONE AT YOUR PERIL OR AS PART OF YOUR GRAND PLAN TO BE DIFFERENTAS PART OF YOUR GRAND PLAN TO BE DIFFERENT

E.G.E.G. NOT PROVIDING PARKINGNOT PROVIDING PARKING NOT GIVING T SHIRTS/MOMENTO TO RUNNING RACE NOT GIVING T SHIRTS/MOMENTO TO RUNNING RACE

PARTICIPANTSPARTICIPANTS NOT OFFERING THE USE OF CREDIT CARDSNOT OFFERING THE USE OF CREDIT CARDS NO MEALS ON AIRLINESNO MEALS ON AIRLINES NO TECHNICAL SUPPORT FOR COMPUTER PURCHASESNO TECHNICAL SUPPORT FOR COMPUTER PURCHASES NO ASSIGNED SEATING ON PLANESNO ASSIGNED SEATING ON PLANES

COMPETITIVE COMPETITIVE ADVANTAGESADVANTAGES

PRICEPRICESERVICESERVICEQUALITYQUALITYVARIETYVARIETYFLEXIBILITYFLEXIBILITYCUSTOMIZATIONCUSTOMIZATIONSPEEDSPEEDBREADTH OF PRODUCT LINEBREADTH OF PRODUCT LINE

DISTINCTIVE COMPETENCIESDISTINCTIVE COMPETENCIES

THINGS THAT YOU DO BETTER THAN ANYONETHINGS THAT YOU DO BETTER THAN ANYONE THINGS THAT YOU COULD BECOME KNOWN FOR IN THINGS THAT YOU COULD BECOME KNOWN FOR IN

THE INDUSTRYTHE INDUSTRY E.G.E.G.

SIGNATURE MEAL (HONEY’S WINGS)SIGNATURE MEAL (HONEY’S WINGS) SIGNATURE HOLE ON A GOLF COURSE (PAR 3 7SIGNATURE HOLE ON A GOLF COURSE (PAR 3 7THTH AT AT

PEBBLE BEACH)PEBBLE BEACH) ON TIME DEPARTURES OF PLANES (SOUTHWEST AIRLINES)ON TIME DEPARTURES OF PLANES (SOUTHWEST AIRLINES) SUPERIOR CUSTOMER SERVICE (4 SEASONS HOTEL)SUPERIOR CUSTOMER SERVICE (4 SEASONS HOTEL) 24/7 SERVICE (IBM)24/7 SERVICE (IBM) YOU COME TO THEM WHEN THEY NEED YOU THE MOST ( )YOU COME TO THEM WHEN THEY NEED YOU THE MOST ( ) YOU NEVER LET THEM DOWN ( )YOU NEVER LET THEM DOWN ( ) ANIMATION (PIXAR STUDIOS)ANIMATION (PIXAR STUDIOS) MOVIE SOUND (THX LABS)MOVIE SOUND (THX LABS)

ENTIRE SECTION ISENTIRE SECTION IS

3-4 PAGES MAXIMUM DOUBLE 3-4 PAGES MAXIMUM DOUBLE SPACEDSPACED

COMPETITION COMPETITION

ANALYSISANALYSIS: BEYOND : BEYOND DESCRIPTIONDESCRIPTION

MICHAEL W. PICZAKMICHAEL W. PICZAK

JULY 2006JULY 2006