27-Sep-22

Competition analysis - Session 5

Creating competitive advantage Chapter 18

Learning Objectives

1. How do marketers identify and analyze the competition?

2. What are major areas for developing competitive
advantage?

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1. How do marketers identify and analyze

the competition?

Competitor analysis is the process of identifying, assessing, and selecting key

competitors.

Determining the
business (industry)

Determining industry and competitors

Step 1 Step 2 Step 3
• Core Utility • How do people • What products or
solve this companies
problem provide these
currently? solutions, and
what industries
they belong to?

Competitors can include:

• All firms making the same product or class of products
• All firms making products that supply the same benefit
• All firms competing for the same consumer dollars

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• All firms making the

same product or
class of products
• All firms making
products that supply
the same benefit
• All firms competing
for the same
consumer dollars

• All firms making the

same product or
class of products
• All firms making
products that supply
the same benefit
• All firms competing
for the same
consumer dollars

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• All firms making the

same product or
To whom and
class of products for what
• All firms making benefit-sought
products that supply these products
the same service address?
• All firms competing
for the same
consumer dollars

Identifying key competitors

• Defines which other brands a

brand competes with
• Which brands should be the
focus of competitive analysis

Decisions about the competitive

frame of reference are closely
linked to target market decisions.

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Assessing key competitors

Competitors’ internal
Competitors’ Competitors’ market Estimating competitors’
organization, resources
objectives & strategy and capabilities performance reactions

• Profitability • Organization & system • Benchmarking • What will our competitors

• Cash flow • Resource & capability • Market share growth do?
• Market leadership • Customer evaluation
• Attack/expansion/follow
/niche

Key competitor's strategy analysis

Market leader Market challenger

strategies strategies

Market follower Market nicher

strategies strategies

Copyright ©2014 by Pearson Education, Inc. All rights reserved

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Key competitor’s competitive strategy

Tập trung vào sự khác biệt
so với đối thủ cạnh tranh
Tập trung vào giá thành rẻ
hơn so với các đối thủ
cạnh tranh
Cost
Differentiation
Leadership
Broad
Scope
Narrow

Middle of the
Focus
road
Tập trung vào một Bán các mặt hàng ko tập trung
nhóm người cụ thể vào đối tượng nào cụ thê

Michael Porter
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Competitive strategy

Operational excellence: Superior value via price and

convenience

Customer intimacy: Superior value by means of building

strong relationships with buyers and
satisfying needs

Product leadership: Superior value via product innovation.

Michael Treacy and Fred Wiersema

Copyright ©2014 by Pearson Education, Inc. All rights reserved

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Key competitors’ internal organization, R&C

Internal Environmental Factors

Firm
Organizational
Leadership Firm Firm
structure & Firm culture
and Resources Capabilities
systeme
management

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Resources are assets owned by the firm.

They can be tangible or intangible.

Capabilities- what the firm can do, a firm’s

capacity to deploy resources for a desired
end result

Distinctive Competence – capabilities that

an organization does particularly well relative
to its competitors

Core Competence - capabilities that are

fundamental to a firm’s strategy and
performance.

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Example of Marketing resources

Tangible Intangible
• Marketing budget • Marketing expertise
• Systems • Knowledge of a market
• Location • Knowledge of customers
• Personnel • Knowledge of company’s
• Data warehouse products or services
•… • Brand reputation

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Example of Marketing capabilities

• Content creation
• Branding management
• Marketing research and analytics
• Sales capabilities
• CRM capabilities
• Digital capabilities
•…

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Build a competition
Key competitors matrix
market performance
Value 1 Value 2 Value 3 Value 4

Your company
The essential
Competitor 1 values your
customers look for
(discovered through
Competitor 2 primary research)

Competitor 3

Your primary competitors

(both direct and indirect)

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Designing a competitive intelligence system

Identifies competitive information and the best sources of this information

Continually collects information
Checks information for validity and reliability
Interprets information
Organizes information
Sends key information to relevant decision makers
Responds to inquiries about competitors

https://www.impactbnd.com/blog/5-ways-to-perform-a-competitive-analysis-establish-your-presence
https://buffer.com/library/competitor-analysis/
https://www.semrush.com/dashboard2/

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2. What are major areas for developing

competitive advantage?
• Competitive advantage: Set of resources or capabilities that allows firms
to serve customers’ needs better than competitors.
• Competitive Advantage (CA) exists if the answer to the following
questions is “Yes”
• Value – does the resource help exploit opportunities?
• Rareness – do competitors have it?
• Imitability – is it costly for competitors to imitate?
• Substitutable – are there any strategic equivalents?

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Source of competitiveness Product quality

• Internal resources and capabilities Product features
• Differential advantage Customer service
• Competitive strategy
Pricing policy
• ...
Distribution coverage
Sales force strategy
Promotion programs
New prd. development
Market performance …
• Customer-perceived value
• Share of market / Share of mind
• Competitive position
• ...

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