Competitor Analysis

Compaq gobi
Dell Apple Sony

What is Competitive Intelligence?

A systematic and ethical program for gathering information about competitors and general business trends to further your own companys goals

Why CI?
Playing the Game Better Play the Game Differently Focus on existing New market opportunity competitors/strategic New customers position Develop/leverage new Leverage value chain value chain strengths strengths New strategies/tactics Incrementally improve existing strategies/tactics

Competitor Intelligence Pyramid

s Recommendations

z Analysis of Data
Sourcesaof Data

Competitor Intelligence Pyramid

Recommendations

Analysis of Data

Sources of Data

Industry experts/analysts Industry publications Trade shows/conferences Advertisements/PR University research centers Financial Court documents/patents Suppliers/customers Newspapers/business wire Help wanted ads Reverse engineering labs

Competitor Intelligence Pyramid

Recommendations

Analysis of Data
Sources of Data

Value chain analysis Ratio analysis Benchmarking Cost analysis Trend analysis Personality profiling Wargaming/scenario planning

Competitive behavior analysis

Competitor Intelligence Pyramid

Track Existing Rivals Anticipate New Rivals Recommendations Inform Strategy:

Analysis of Data

Identify

Sources of Data

own/competitors strengths/weaknesses Early warning system Plan of attack/retaliation

Whos Job Is It?

Department Staff

Project Managers

Top Execs

Planning & Finance Analysts

Department Managers

Independent Consultants

CI Paradox
Many Global 1000 companies dont have full-scale CI units Most Global 1000 executives believe that success depends on:

Looking

ahead First-mover advantage Strategic flexibility and maneuvering

Competitor Analysis
Future Objectives
How do our goals compare to our competitors goals? Where will emphasis be placed in the future? What is the attitude toward risk?

What drives the competitor?

Competitor Analysis
Future Objectives
How do our goals compare to our competitors goals? Where Current Strategy will emphasis be placed in the future? currently How are they What is the attitude competing? toward risk? Does this strategy support changes in the competitive structure?

What is the competitor doing? What can the competitor do?

Competitor Analysis
Future Objectives
What does the competitor believe about itself and the industry?

How do our goals compare to our competitors goals? Where Current Strategy will emphasis be placed in the future? How are we currently What is the attitude competing? Assumptions toward risk? Does this strategy Do we assume the future support changes in the will be volatile? competition structure? What assumptions do our competitors hold about the industry and themselves? Are we assuming stable competitive conditions?

Competitor Analysis
Future Objectives
What are the competitors capabilities?

How do our goals compare to our competitors goals? Where Current Strategy will emphasis be placed in the future? How are we currently What is the attitude competing? Assumptions toward risk? Does this strategy Do we assume the future supportwill be volatile? changes in the competition structure? What assumptions do our competitors hold about the Capabilities industry and themselves? What are my competitors Are we operating under strengths and weaknesses? a status quo? How do our capabilities compare to our competitors?

Dynamic Head-to-Head Rivalry

Future Objectives
How do our goals compare to our competitors goals? Where Current Strategy will emphasis be placed in the future? How are we currently What is the attitude competing? Assumptions toward risk? Does this strategy Do we assume the future supportwill be volatile? changes in the competition structure? What assumptions do our Capabilities competitors hold about the industry and themselves? What are my competitors Are we operating under strengths and weaknesses? a status quo? How do our capabilities compare to our competitors?

Response
What will our competitors do in the future? Where do we have a competitive advantage? How will this change our relationship with our competition?

Strategic Group Map: Beer

(Pre-light / Pre-microbrew)
Dark/Full

Guinness

Amber Heineken Old Swill Light Miller Bud

Regular

Low Price

High Price

Strategic Group Map: Beer

Dark/Full
Killians Brown Lowenbrau Dark Guinness Blackened Voodoo Anchor Porter

Amber

Killians Red Amber Bock Red Wolf Lowenbrau Old Swill Milwaukees Best Light Bud Miller Miller Lite Bud Ice

Sam Adams Bass Ale Pilsner Urquell

Regular Light

Amstel Cardinal

Low Price

High Price