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7/29/2019 Ch03 Competitor Analysis
1/18
2007JohnWiley&
Sons
Chapter 3 - Competitor Analysis PPT 3-1
Competitor Analysis
Chapter Three
Copyright 2010 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in
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Requests for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser
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7/29/2019 Ch03 Competitor Analysis
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Questions to structure
Competitor Analysis
Who are the competitors ?
Against whom do we usually compete? Who
are our most intense competitors? Less
intense but still serious competitors? Makersof substitute products?
Can these competitors be grouped into
strategic groups on the basis of their assets,competencies and/or strategies?
Chapter 3 - Competitor Analysis PPT 3-2
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Evaluating the Competitors
What are the objectives and strategies? Their level of
commitment? Their exit barriers?
What is their cost structure? Do they have a cost advantage or a
disadvantage?
What is their image & positioning strategy?
Which are the most successful/unsuccessful competitors
overtime? Why?
What are the strengths and weaknesses of each competitor or
strategic group?
What leverage points (or strategic weaknesses or customer
problems or unmet needs) could competitors exploit to enter the
market or become more serious competitors? How strong or weak is each competitor wrt to their assets and
competencies?
Chapter 3 - Competitor Analysis PPT 3-3
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Chapter 3 - Competitor Analysis PPT 3-4
Competitor Identification
Customer-Based Approaches
Customer choices
What brand would you buy ifyour favorite was unavailable?
Application associations What applications?
What brands for each application?
What product substitutes?
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Chapter 3 - Competitor Analysis PPT 3-5
Competitor Identification
Strategic Groups
Pursue similar competitive strategiesHave similar characteristics
Have similar assets and competencies
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Chapter 3 - Competitor Analysis PPT 3-6
Competitor Analysis
Potential Competitors: Market expansion
Product expansion
Backward integration
Forward integration
Export assets or competencies
Retaliatory or defensive strategies
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Chapter 3 - Competitor Analysis PPT 3-7
Understanding the Competitors
Objectives and
Commitment
Image and
PositioningSize, Growth
& Profitability
Current and
Past StrategiesStrengths and
Weaknesses
Cost Structure
Exit Barriers Organization
and Culture
Competitor
Actions
Figure 3.2
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Chapter 3 - Competitor Analysis PPT 3-8
Relevant Assets and Competencies
1) -What businesses have been successful over
time?
-What assets or competencies contributed
to their success?
-What businesses have had chronically low
performance?
-Why?
-What assets or competencies do they lack?
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Chapter 3 - Competitor Analysis PPT 3-9
2) -What are the key customer motivations?
-What is needed to be preferred?
-What is needed to be considered?
-What is really important to the customer?
3) What assets and competencies represent
industry mobility (entry and exit) barriers?
Relevant Assets and Competencies
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Chapter 3 - Competitor Analysis PPT 3-10
4) -What are the significant value added
components in the value chain?
-Do any provide the potential to generate
a competitive advantage?
Relevant Assets and Competencies
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Chapter 3 - Competitor Analysis PPT 3-11
Key Learnings
Competitors can be identified by customer choice (the set from which customersselect) or by clustering them into strategic groups (firms that pursue similar
strategies and have similar assets, competencies, and other characteristics). In
either case, competitors will vary in terms of how intensely they compete.
Competitors should be analyzed along several dimensions, including their size,
growth and profitability, image, objectives, business strategies, organizationalculture, cost structure, exit barriers, and strengths and weaknesses.
Potential strengths and weaknesses can be identified by considering the
characteristics of successful and unsuccessful businesses, key customer
motivations, mobility barriers, and value-added components.
The competitive strength grid, which arrays competitors or strategic groups on
each of the relevant assets and competencies, provides a compact summary of
key strategic information.
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Chapter 3 - Competitor Analysis PPT 3-12
Ancillary Slides
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Chapter 3 - Competitor Analysis PPT 3-13
Induce your competitors not to
invest in those products, marketsand services where you expect to
invest the most that is the
fundamental role of strategy.
- Bruce HendersonFounder of BCG
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Chapter 3 - Competitor Analysis PPT 3-14
There is nothing more
exhilarating than to be shot atwithout result.
- Winston Churchill
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Chapter 3 - Competitor Analysis PPT 3-15
The best and fastest way to learn
a sport is to watch and imitate a
champion.
- J ean-Claude Killy,Skier
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Chapter 3 - Competitor Analysis PPT 3-16
There is one rule for industrialists
and that is: Make the best quality ofgoods possible at the lowest cost
possible, paying the highest wages
possible.- Henry Ford
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Chapter 3 - Competitor Analysis PPT 3-17
We often give our enemies the
means for our own destruction.
- Aesop
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Chapter 3 - Competitor Analysis PPT 3-18
In business, the competition will
bite you if you keep running, if youstand still, they will swallow you.
- William Knudsen