Knowing Your Competition!


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"Know Thy Competitor(s)"!

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Knowing Your Competition!

  1. 1. How Do You View Your Competitor(s)? Presentation By Andre’ Harrell CEO AH2 & Beyond
  2. 2. How Do Your Competitor(s) View You?
  3. 3. Are You Close To Your Competitor(s)?
  4. 4. If You Do Not Have The Answers To These 3 Questions YOU LOST!!
  5. 5. <ul><li>Competitive Analysis – Why? (Strategies) </li></ul><ul><li>Understanding the enemy </li></ul><ul><li>Competitive Analysis – Ongoing 3-step process </li></ul><ul><li>“ War-Games” Break-out Session followed by Session Wrap-up </li></ul>Presentation Outline
  6. 6. 2 Competitor Analysis – Why? <ul><li>Sun Tzu, the great Chinese military strategist, wrote a treatise on the Art of War in 500 BC; </li></ul><ul><ul><li>If you are ignorant of both your enemy and yourself, then you are a fool and certain to be defeated in every battle; </li></ul></ul><ul><ul><li>If you know yourself, but not your enemy, for every battle won, you will suffer a loss; </li></ul></ul><ul><ul><li>If you know your enemy and yourself, you will win every battle. </li></ul></ul>
  7. 7. 2 Competitor Analysis – Strategies <ul><li>Defensive Strategy </li></ul><ul><ul><li>Hold the high ground(Market Share) </li></ul></ul><ul><ul><li>Blocks all competitive moves </li></ul></ul><ul><ul><li>Willing to attack oneself </li></ul></ul><ul><ul><li>Offensive Strategy </li></ul></ul><ul><ul><li>5 to 1 superiority </li></ul></ul><ul><ul><li>Significant resources available </li></ul></ul><ul><ul><li>Flanking Strategy </li></ul></ul><ul><ul><li>All great Strategists use this type </li></ul></ul><ul><ul><li>Find a weakness to exploit </li></ul></ul><ul><ul><li>Increase your market once you gain hold </li></ul></ul>
  8. 8. 2 Competitor Analysis – Strategies <ul><li>A Few Things To Remember Regarding Your Strategy </li></ul><ul><ul><li>Rely upon one Strategy, well tested, to accomplish an objective (achieving your “win”) </li></ul></ul><ul><ul><li>If you attempt to execute more than one strategy at a time, you dilute your ability to achieve your “win” </li></ul></ul><ul><ul><li>Michael Porter’s Article “What is Strategy”, says that attempting to execute more than one strategy comes from a “failure to choose” and leads to division of tactical support elements exponential to the number of strategies. </li></ul></ul>
  9. 9. 5 Competitive Analysis – Ongoing Process <ul><li>Analysis of your competitors has to be a critical part of your business planning process (e.g. situational analysis, customer segmentation diagramming, etc) </li></ul><ul><li>Your goal is to make sure you have an effective coordinated approach (e.g. sales, marketing, business analytics, operations, R&D, Key Opinion Leaders etc) </li></ul><ul><li>Schedule periodic “Strategic War Game” Meetings/Projects that map out key competitors from comparing/contrast perspective </li></ul><ul><li>Market Research elements that identify key market areas, market shares, sales force intelligence, marketing capabilities </li></ul>
  10. 10. Understanding The Enemy <ul><li>How they think </li></ul><ul><li>What are their strengths </li></ul><ul><li>What are their weaknesses </li></ul><ul><li>Where are they vulnerable </li></ul><ul><li>Where can they be attacked </li></ul><ul><li>Where the risk of attack is too great… </li></ul>
  11. 11. 4 What Can We Do With This Understanding Of The Enemy? <ul><li>Use it in making key business decisions </li></ul><ul><li>Evaluate our own performance against our competitors </li></ul><ul><li>Create marketing strategies that take advantage of our strengths and competitors weaknesses, and that address our competitors marketing of their strengths and our weaknesses </li></ul><ul><li>Get new ideas – what are they doing that is very successful – should we consider doing it? </li></ul><ul><li>Create a culture within our own business of continually seeking to improve </li></ul>
  12. 12. What Do We Mean By Competitors? <ul><li>Other organizations offering the SAME product or service NOW </li></ul><ul><li>Other organisations offering SIMILAR products or services NOW </li></ul><ul><li>Organisations that could offer the SAME OR SIMILAR products or services in the FUTURE </li></ul><ul><li>Organisations that could REMOVE THE NEED for a product or service </li></ul>
  13. 13. What do we need to know about our competitors? <ul><li>What do they offer? </li></ul><ul><ul><li>Product range (existing and expected new products) </li></ul></ul><ul><ul><li>Service portfolio (existing and expected new services) </li></ul></ul><ul><ul><li>How do these compare to ours? </li></ul></ul><ul><ul><li>What do we do better than them? </li></ul></ul><ul><ul><li>What can we learn from them? </li></ul></ul><ul><li>Who do they offer to i.e. who are their customers? </li></ul><ul><ul><li>Consider the different types of customer </li></ul></ul><ul><ul><li>Are they picking off the best customer groups / customers? </li></ul></ul><ul><ul><li>Consider their major customers - can we target them to win their business? </li></ul></ul><ul><ul><li>What can we learn from them? </li></ul></ul>
  14. 14. 9 What do we need to know? (contd.) <ul><li>What is their offer quality / service / relationship? </li></ul><ul><ul><li>Why do their customers buy their products? Consider all customer groups as the answer may be different for different groups </li></ul></ul><ul><ul><li>How do this compare to our offer mix? </li></ul></ul><ul><ul><li>What do we do better than them? </li></ul></ul><ul><ul><li>What can we learn from them? </li></ul></ul><ul><li>How do they promote themselves? </li></ul><ul><ul><li>What marketing strategies do they use? Advertising / Press coverage / direct mail / face to face customer interaction etc…? </li></ul></ul><ul><ul><li>What key messages do they get across? </li></ul></ul><ul><ul><li>Do they focus on their strengths, their competitors’ weaknesses or both? </li></ul></ul><ul><ul><li>How do we promote better? </li></ul></ul>
  15. 15. What do we need to know? (contd.) <ul><li>Who are their suppliers? </li></ul><ul><ul><li>Do they use the same suppliers as we do? </li></ul></ul><ul><ul><li>If they do, is this on the same commercial terms? </li></ul></ul><ul><ul><li>If not, why? Are these new suppliers worth investigating? </li></ul></ul><ul><ul><li>What can we learn from them? </li></ul></ul><ul><li>How financially secure are they? </li></ul><ul><ul><li>Are their financial results indicating their current business strategies are successful? </li></ul></ul><ul><ul><li>Or do they indicate they may need to change their strategies? </li></ul></ul><ul><ul><li>Are they in urgent need of a step change in market share which could lead to the introduction of very short-term pricing strategies? </li></ul></ul>
  16. 16. What do we need to know? (contd.) <ul><li>What kind of organization are they and what are their business strategies? </li></ul><ul><ul><li>How have they set themselves up to meet customers needs? </li></ul></ul><ul><ul><li>What is their ownership structure and how does this drive their business strategies? </li></ul></ul><ul><ul><li>What can we learn from them? </li></ul></ul><ul><li>What are their Strengths & Weaknesses? </li></ul><ul><ul><li>What are they best at? </li></ul></ul><ul><ul><li>Where are they exposed? </li></ul></ul>
  17. 17. What do we need to do? (contd.) <ul><li>Specifically, what are their main competitive advantages over Us? </li></ul><ul><ul><li>What do they say about their strengths? </li></ul></ul><ul><ul><li>What do they say about our weaknesses? </li></ul></ul><ul><ul><li>How do they say it ie advertising, press coverage, face to face customer interaction, etc.? </li></ul></ul><ul><li>How can we counteract them? </li></ul><ul><ul><li>What can we say about our strengths? </li></ul></ul><ul><ul><li>What can we say about the weaknesses they claim we have? </li></ul></ul><ul><ul><li>How can we say it ie advertising, press coverage, face to face customer interaction, etc.? </li></ul></ul><ul><ul><li>How can WE influence the influencers? </li></ul></ul>
  18. 18. “ War-Games”Break-out Session <ul><li>Break-out Groups </li></ul><ul><ul><li>Group 1 - North America & Middle East </li></ul></ul><ul><ul><ul><li>Key National Competitors + Company A, Company B, Company C, </li></ul></ul></ul><ul><ul><li>Group 2 - Mainland Europe </li></ul></ul><ul><ul><ul><li>Key National Competitors + Company D, Company E, Company F </li></ul></ul></ul><ul><ul><li>Group 3 - UK & Ireland, ANZ </li></ul></ul><ul><ul><ul><li>Key National Competitors + Company G, Company H, Company I </li></ul></ul></ul><ul><ul><li>Group 4 - Africa & South America </li></ul></ul><ul><ul><ul><li>Key National Competitors </li></ul></ul></ul>
  19. 19. <ul><li>Prepare initial answers to Slides 14, 15 and 16; </li></ul><ul><ul><li>What are their Strengths & Weaknesses? </li></ul></ul><ul><ul><li>Specifically, what are their main competitive advantages over Our Company? </li></ul></ul><ul><ul><li>How can we counteract them? </li></ul></ul><ul><ul><li>Remember : Thinking about questions 11- 13 </li></ul></ul><ul><ul><li>may also help when answering Questions 14, 15 and 16 </li></ul></ul>“ War-Games”Break-out Session
  20. 20. <ul><li>1 hour to discuss in your groups </li></ul><ul><li>15 minutes to present your answers </li></ul><ul><li>Break for refreshments after first 2 groups presentation </li></ul><ul><li>After all groups have presented, we will have a final short session to consolidate our best ideas and wrap-up </li></ul>“ War-Games”Break-out Session
  21. 21. <ul><li>Group Discussion – who are our key competitors in key global markets? </li></ul>“ War-Games”Break-out Session
  22. 22. Global Competitive Analysis Session - Wrap-Up <ul><li>This session has been a very useful start to this process </li></ul><ul><li>Think about useful sources of competitive information – not just market research reports! </li></ul><ul><li>Thank you all for your input to this session </li></ul><ul><li>– I think we really hit the target! </li></ul>