Competitor analysis.pptx

7/29/2019 Competitor analysis.pptx

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Lizetta pereira

Roll no:9930



According to business dictionary strategictechnique is used to evaluate outside Competitors.

The analysis seeks to identify weaknesses

and strengths that a company’s competitors may

have, and then use that information to improveefforts within the company.

An effective analysis will first obtain important

information from competitors and then based on

this information predict how the competitor willreact under certain circumstances.



There are four diagnostic components to a

competitor analysis: future goals, current

strategy, assumptions and capabilities.

Understanding these four components willallow an informed prediction of the

competitor’s response profile. Most

companies develop at least an intuitive sense

for their competitors’ current strategies and

their strengths and weaknesses.



Competitor analysis has two primary activities,

obtaining information about importantcompetitors and using that information topredict competitor’s behaviour.

The goal of the competitor analysis is to

understand:Who are the major competitors to competeCompetitors’ strategies and planned actions How competitors might react to a firm’s actions

How to influence competitor behaviour to thefirm’s own advantage



Companyaction

Currentstrategy

capabilities

assumption

Future goals



The knowledge of goals will allow the competitors

to predict the basic moves of the company. Analysis

of future goals would be helped to identify the

attitude & likely strateges.

For example, an automobile manufacturingcompany, if it produces only SUVs, then its

competitors will think in terms of SUVs or high-end

sports models or sedans. But on the contrary if the

company starts to manufacture small cars

concentrating families and teenagers then, this

move is an unexpected move for its competitors in

the SUV market as well as small car market.



The assumptions that a competitor’s managers hold

about their firm and their industry help define themoves that they will consider.

A competitor’s assumptions may be based on a

number of factors, which include past experience

with the product, regional factors, industry trends,rules of thumb, beliefs about its competitive

position.



Analyzing a competitor’s resources and capabilities can

be done in a similar manner as in SWOT analysis.

This will reveal what are the capabilities and how these

capabilities can be put to the use and what is the

resultant product that might be released.

The analysis can be taken further by evaluating or

predicting the company’s next moves with regard to

mobilizing resources for a sustainable growth rate.

The ability to react quickly to the changing situations

and market conditions can also be evaluated.

Some firms have heavy momentum and may continue to

be in their present position for many years



To study the market;

To predict and forecast organization’s

demand and supply;

To formulate strategy; To increase the market share;

To study the market trend and pattern;

To develop strategy for organizational

growth;



When the organization is planning for the

diversification and expansion plan;

To study forthcoming trends in the industry;

Understanding the current strategy strengthsand weaknesses of a competitor can suggest

opportunities and threats that will merit a

response;

Insight into future competitor strategies mayhelp in predicting upcoming threats and

opportunities.



Thank

you

Competitor analysis.pptx

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