Industry Analysis Team Project

8/10/2019 Industry Analysis Team Project

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MKT 606 – Strategic Marketing

Industry Analysis Team Project

OverviewIn any firm, the only way to make effective decisions for investment in market-driven and

market-driving strategies is to first gain as complete as possible understanding of thecompetitive marketplace. Put another way, good strategic marketing doesn’t take place in

a vacuum – it takes place in a dynamic environment of competitors, customers, and other

factors.

This assignment gives your team the opportunity to select an industry, identify three top

competitors, and then do the research and reporting necessary to develop appropriatestrategies.

asic Tem!lateThe basic template of the report is straightforward, but of course the outcome is only as

good as the work put into the sections. ere are the basic parts!

"# Perform an "#ternal and Internal "nvironmental Analysis

a. $%ternal environment yields opportunities and threats (Ch.5, especially Fig. 5.1)

b. Internal environment yields strengths and weaknesses - focus on things that

contribute most to market success &Ch.6 gives you areas you can look at

internally for the key competitors. However, woul! like you to focus on things

that contri"ute the most to market success. #herefore, you can use Fig. $.% as a

gui!e to much of this assessment.#

'# Perform a $om!etitor Analysis (Ch.$, especially Fig. $.1)

a. Identify and analy(e the three most important !irect competitors

b. Identify other current and potential !irect competitors

c. Identify current and potential in!irect competitors

d. )evelop a *ompetitor +trength rid (see e&ample in Fig. $.5)

# Perform a Market%Su&market Analysis – current and high potential (Ch.%, especially

Fig. %.1)

# Perform a $ustomer Analysis – current and high potential (Ch.', especially Fig. '.$)

/# Provide a *omprehensive Strategy Assessment (Figs. .' an! .1 can help gui!e your

thinking here)

a. )escribe each key competitor’s current positioning0marketing strategy

b. 1hat are each key competitor’s ma2or sources of competitive advantagec. 1hat additional sources of competitive advantage could each develop in the

future

d. +elect one competitor for further focus, then provide!

i. 3ew positioning and accompanying new marketing strategies that you

recommend for it

ii. 1hy you recommend these particular strategies

iii. ow these strategies would be implemented

iv. ow their success should be measured

"



"n'anced Tem!late4elow are some e%emplar 5uestions to get you started thinking about each section. These

are not intended to be the only issues for research or in5uiry, but instead are meant to getyour creative 2uices flowing. The inside back cover of the 6aker book provides even

more 5uestions for your consideration in preparing each section of the report.

For the External Environmental Analysis7or the industry as a whole evaluate!

T$*3898: T;$3)+

• To what e%tent are e%isting technologies maturing<

• 1hat technological developments or trends are affecting or could affect the

industry<

*83+=>$; T;$3)+

• 1hat are the current or emerging trends in lifestyles, fashions, and other relevant

components of culture< 1hy< 1hat are their implications<

• 1hat demographic trends will affect the market si(e of the industry or its

submarkets<

• 1hat demographic trends represent opportunities or threats<

8?$;3>$3T0$*838>I* T;$3)+

• 1hat are the economic prospects and inflation risks for the countries in which the

firm operates< ow will they affect strategy<

• 1hat changes in regulation are possible< 1hat will their impact be<

• 1hat are the political risks of operating in a governmental 2urisdiction<

$3$;69 $@T$;369 6369:+I+ A=$+TI83+

• 1hat are the significant trends and future events<

• 1hat threats and opportunities do you see<

• 1hat are the key areas of uncertainty as to trends or events that have the potential

to impact strategy< $valuate these strategic uncertainties in terms of their impact.

+*$36;I8+

• 1hat strategic uncertainties are worth being the basis of a scenario analysis<

For the Internal Environmental Analysis7or each individual competitor evaluate!

I338?6TI83

• Technical products or service superiority

• 3ew product capability

• ;B)

• Technologies

'



• Patents

>63=76*T=;I308P$;6TI83+

• *ost structure

• $ffective and fle%ible operations

• $5uipment• ?ertical integration

• 1orkforce attitude and motivation

• *apacity

• 8utsourcing

7I363*$ – 6**$++ T8 *6PIT69

• 7rom operations

• 7rom net short-term assets

• 6bility to use debt and e5uity financing

• Parent’s willingness to finance

>636$>$3T

• Auality of top and middle management

• Cnowledge of business

• *ulture

• +trategic goals and plans

• $ntrepreneurial thrust

• Planning0operation system

• 9oyaltyDturnover

• Auality of strategic decision making

>6;C$TI3

• Product 5uality reputation

• Product characteristics0differentiation

• 4rand name recognition

• 4readth of the product lineDsystems capability

• *ustomer orientation

• +egmentation0focus

• )istribution

• ;etailer relationship• 6dvertising0promotion skills

• +ales force

• *ustomer service0product support

*=+T8>$; 46+$

• +i(e and loyalty

• >arket share



• rowth of segments served

For the Competitor Analysi s*onsider these important issues for the identified competitors!

18 6;$ T$ *8>P$TIT8;+<• 6gainst whom do we usually compete< 1ho are our most intense competitors<

9ess intense but still serious competitors< >akers of substitute products<

• *an these competitors be grouped into strategic groups on the basis of their assets,

competencies, and0or strategies<

• 1ho are the potential competitive entrants< 1hat are their barriers to entry< Is

there anything that can be done to discourage them<

$?69=6TI3 T$ *8>P$TIT8;+

• 1hat are their ob2ectives and strategies< Their level of commitment< Their e%it

barriers<

• 1hat is their cost structure< )o they have a cost advantage or disadvantage<

• 1hat is their image and positioning strategy<

• 1hich are the most successful0unsuccessful competitors over time< 1hy<

• 1hat are the strengths and weaknesses of each competitor or strategic group<

• 1hat leverage points &strategic weaknesses or customer problems or unmet

needs# could competitors e%ploit to enter the market or become more serious

competitors<

• ow strong or weak is each cmmpetitor with respect to their assets and

competencies< enerate a competitor strength grid.

For the Market/Submarket Analysis7or the industry as a whole evaluate!

+=4>6;C$T+

• 6re submarkets emerging defined by lower price points, the emergence of niches,

systems solutions, new applications, a customer trend, or new technology< ow

should the submarket be defined<

+IE$ 63) ;81T

• Important submarkets< 1hat are the si(e and growth characteristics of a market

and submarkets< 1hat submarkets are declining or will soon decline< ow fast<1hat are the driving forces behind sales trends<

P;87IT64I9IT:

• 7or each ma2or submarket, consider the following! Is this a business area in

which the average firm will make money< ow intense is the competition among

e%isting firms< $valuate the threats from potential entrants and substitute

products< 1hat is the bargaining power of suppliers and customers< ow

attractive0profitable are the market and its submarkets both now and in the future<



*8+T +T;=*T=;$

• 1hat are the ma2or cost and value-added components for various types of

competitors<

)I+T;I4=TI83 +:+T$>+• 1hat are the alternative channels of distribution< ow are they changing<

>6;C$T T;$3)+

• 1hat are the trends in the market<

C$: +=**$++ 76*T8;+

• 1hat are the key success factors, assets, and competencies needed to compete

successfully< ow will these change in the future< ow can the assets andcompetencies of competitors be neutrali(ed by strategies<

For the Customer Analysis7or the industry as a whole evaluate!

+$>$3T6TI83

• 1ho are the biggest customers< The most profitable< The most attractive

potential customers< )o the customers fall into any logical groups based on

needs, motivations, or characteristics<

• ow could the market be segmented into groups that would re5uire a uni5ue

business strategy<

*=+T8>$; >8TI?6TI83+

• 1hat elements of the product0service do customers value most<

• 1hat are the customers’ ob2ectives< 1hat are they really buying<

• ow do segments differ in their motivation priorities<

• 1hat changes are occurring in customer motivation< In customer priorities<

=3>$T 3$$)+

• 1hy are some customers dissatisfied< 1hy are some changing brands or

suppliers<

• 1hat are the severity and incidence of customer problems<

• 1hat are unmet needs that customers can identify< 6re there some of which

customers are unaware< 1hat are those<

• )o these unmet needs represent leverage points for competitors or a new business

market<

For the Strategy AssessmentThis section is to include the following!

• Identify each competitor’s sources of strategic differentiation

• )escribe each key competitor’s current positioning0marketing strategy

/



• 1hat are each key competitor’s ma2or sources of competitive advantage<

• 1hat additional sources of competitive advantage could each develop in the

future<

• +elect one competitor for further focus, then provide!

o 3ew positioning and accompanying new marketing strategies that you

recommend for it – to accomplish this review the various potential sourcesof strategic differentiation to develop viable strategic options

o 1hy you recommend these particular strategies

o ow these strategies would be implemented

o ow their success should be measured

(isclaimer7or a particular industry analysis, if there is information in the template that you think is

unavailable or irrelevant, or if there is information you wish to add that is not in the

template, please contact me in a timely manner. Parts ", ', , and can be included in thedocument in any order. Part / must be the last ma2or part of the paper. )o not duplicate

information across the various sections of the template.

)e!orting and Presentation$ach team is re5uired to prepare one comprehensive industry analysis for the class,

including a formal presentation in addition to the written document. The presentationscan be as creative as you like so long as they cover the essential issues re5uired in the

analysis. The presenting team will each turn in a ma%imum "'-"/ page paper &e%ecutive

summary, e%hibits, references, appendices, cover sheet, and any other material deemed

relevant may be added to the above page limit# and will also deliver a ma&imum $*minute PowerPoint presentation, not including AB6 and discussion time. 6vailable

points are "/F.

*ormat and (elivery+ee separate instructions posted on 4lackboard under *ourse )ocuments, GTeam Pro2ect

;eport 7ormatting and )elivery +pecifications.H

$redits6aker, )avid 6. &'F"#, +trategic arket anagement "Fth edition, oboken, 3! ohn1iley B +ons.

J

Documents

Industry Analysis Team Project