Competitor Analysis
Download as PPTX, PDF5 likes5,826 views
Competitor analysis is a strategic assessment of strengths and weaknesses of current and potential rivals, focusing on identifying opportunities and threats in the industry. The analysis involves defining the industry, identifying competitors and customers, ranking key success factors, and profiling competitors on aspects like financials, products, marketing, and corporate strategies. The document describes methodologies for assessing competitors through weighted ratings for success factors and detailed profiling covering various attributes such as financials, products, and management.
Competitor Analysis
- 1. COMPETIT OR ANALYSIS PREPARED & PRESENTED BY, ASHOK.M
- 2. DEFINITION Competitor analysis is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats.
- 3. COMPETITOR ARRAY Define your industry - scope and nature of the industry. Determine who your competitors are. Determine who your customers are and what benefits they expect. Determine what the key success factors are in your industry. Rank the key success factors by giving each one a weighting - The sum of all the weightings must add up to one. Rate each competitor on each of the key success factors. Multiply each cell in the matrix by the factor weighting.
- 4. EXAMPLE Key Industry Success Factors Weighting Competito r #1 rating Competito r #1 weighted Competito r #2 rating Competito r #2 weighted 1Extensive distribution .4 6 2.4 3 1.2 2Customer focus .3 4 1.2 5 1.5 3Economies of scale .2 3 .6 3 .6 4 - Product innovation .1 7 .7 4 .4 Totals 1.0 20 4.9 15 3.7
- 6. BACKGROUND Location of offices and plants. History - key personalities, dates, events, and trends. Ownership, corporate governance, and organizational structure.
- 7. FINANCIALS P-E ratios, dividend policy, and profitability. Various financial ratios, liquidity, and cash flow. Profit growth profile.
- 8. PRODUCTS Products offered and product portfolio balance. New products developed, new product success rate and R&D strengths. Brands, brand loyalty and brand awareness. Patents and licenses. Quality control conformance.
- 9. MARKETING Segments served, market shares, customer base and growth rate. Promotional mix, promotional budgets, advertising themes, ad agency used, sales force success rate and online promotional strategy. Distribution channels used and geographical coverage. Pricing, discounts and allowances.
- 10. FACILITIES Plant capacity, capacity utilization rate, age of plant, plant efficiency and capital investment. Location and shipping logistics.
- 11. PERSONNEL Number of employees and skill sets. Strength of management and management style. Compensation, benefits, employee morale and retention rates.
- 12. CORPORATE STRATEGIES • Objectives, mission statement, growth plans, acquisitions, and divestitures
- 13. ANALYSIS OF NEW COMPETITOR Companies competing in a related product/market. Companies using related technologies. Companies already targeting your prime market segment but with unrelated products. Companies from other geographical areas and with similar products. New start-up companies organized by former employees and/or managers of existing companies.
- 14. THANK YOU