Competitive Analysis
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Competitive Analysis

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    Competitive Analysis Competitive Analysis Presentation Transcript

    • Competitor Analysis Business Education Series
    • You are competing for the customer • Customers make choices everyday on ‘What” they buy and “Who” they buy it from • What is your customer actually buying? • How does he decide between competitors? Value Equation Price Benefits $$
    • Competition is Good • Keeps existing companies from becoming fat and lazy • Gives start-up companies a peek at what’s around the corner • Gives customers greater choice and better value • Offers “The thrill of victory”
    • “Every business has competition” I have no competition!
    • Steps in Competitive Analysis • Determine what business you are in • Map the competitive landscape • Identify strengths and weaknesses • Analyze how the winners and the losers play the game • Formulate a strategy to differentiate yourself
    • Ask These Basic Questions • How else is the customer solving the problem or satisfying the need today? • What does he like and dislike about each? • What other options are on the horizon? • What’s the compelling reason for him to buy your product? • What will it take to get him to switch?
    • Who is my competition?
    • Who wants their own business? What business are you in?
    • Direct Competitors: Same Product • Niche Film Venues • Multiplex Cinemas
    • Indirect Competitors: Fulfills the Same Need Blockbuster Deliver by TV Deliver by Internet Deliver by Mail
    • Substitutes: Acceptable Alternatives
    • Critical Competitive Information • Structure, strategies, commitment • Business model • Financial and operating analysis • Marketing strategy (message, tactics, pricing, distribution channels, key customers) • Market perception and desired positioning • Future direction
    • How to Gather information • Be a customer • Find customer reviews • Read your competitors’ “resumes” • Scrutinize analysts’ reports; “attend” web-casts • Talk to your competitors’ customers • Interview consultants and opinion leaders • Search the Internet; check public filings • Subscribe to trade journals and newsletters • Purchase multi-client market studies • Attend industry conferences and trade shows
    • Situation Analysis • Situation Analysis - “SWOT” – Your company (product) • Strengths • Weaknesses – Outside environment • Opportunities • Threats
    • SWOT STRENGTHS WEAKNESSES • Low-Cost Operations • Limited Long-Haul • High Customer Routes Satisfaction • No Business Class • High Efficiency • No International Flights OPPORTUNITIES THREATS • Non-Stop Long-Haul • Rising fuel costs Flights • New low-cost airlines • Expansion to new cities • Airport capacity limits • Airline bankruptcies
    • Competing to Win • To survive and prosper you’ll need to: – Pay the entry fee (Critical success factors) – Pick your seat at the table (Positioning) – Execute a winning strategy (Competitive Advantage)
    • Critical Success Factors • Critical Success Factors – Necessary but not sufficient to win in the marketplace • Different for every industry • Flexible manufacturing • Strong R&D pipeline • Location
    • To compete for the long term you need to take steps to build a sustainable competitive advantage • Strengthen core competencies • Secure strategic assets • Find a niche to dominate • Build a defensible position
    • Establishing a Competitive Advantage
    • Other Sources of Competitive Advantage • Cost leadership • Product differentiation • Innovation in business methods • Synergistic alliances • Exclusivity arrangements • Barriers to entry
    • Ethical Conduct: Do Not List • Lie when representing yourself • Ignore company’s legal guidelines • Tape record a conversation • Plant eavesdropping devices • Mislead anyone into an interview • Discuss price information with a competitor • Steal a trade secret • Go dumpster diving !!!
    • If you remember nothing else…. “There is only one boss…the Customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.” - Sam Walton
    • Questions and Comments