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Chapter 4: Competitor Analysis

³What are they going to do?´

Advanced Marketing BiMBA 2006

Competitor Analysis System 1. Determine who has competitive edge 5. Gather primary data 3. Gather secondary data 2. Answer key questions   What are their product/service features? What are their objectives / strategy? 4. Figure what they are going to do Advanced Marketing BiMBA 2006 .

Secondary data Internal sources Internet Sales literature Local newspapers Business press Consultants Advanced Marketing BiMBA 2006 .

printers. Suppliers Consultants Investment bankers Help-wanted ads Trade shows Reverse engineering / benchmarking Advanced Marketing BiMBA 2006 . etc.Primary data Sales people Employees   ³mystery shoppers´ Accountants. lawyers.

500 7 days 10 days 13 days Meals all Transportation bus breakfast breakfast & lunch Price $3.450 bus & train air and bus Advanced Marketing BiMBA 2006 .900 Tour C $5.Comparing Product Features Length Tour A Tour B $2.

Comparative size & growth (BCG) Growth of industry Company B Company C Company D Company A Company E Advanced Marketing Comparative market share BiMBA 2006 = sales .

Determining Objectives Objective Company A* Harvest decrease promos Company B Hold Company C** Growth Implication increase price. increase promos increase distribution *Company appears to be short of cash **Short-term loss does not appear to be a concern Advanced Marketing BiMBA 2006 . maintain price and promos cut price.

fit. service & high price high style & low price Advanced Marketing BiMBA 2006 .Determining Core Strategy Company A Company B Company C Target Market teenagers young adults teenagers Core Strategy high status & high price comfort.

Determining ³Value Chain´ Inbound Operations Outbound Marketing Service Company A Company B Company C + 0 + 0 + 0 + 0 + + 0 + + - Advanced Marketing BiMBA 2006 .

lo price heavy net promos mass Advanced Marketing BiMBA 2006 . net medium Distribution specialty stores Company B hi quality specialty hi net stores Company C market lo quality lo service limited hi service price TV.Determining the ³Marketing Mix´ Company A Product hi quality Price Promotion hi price extensive TV.

why Place: distribution method and coverage Promotion: cost and method Advertising: strategy.Alternative ³Marketing Mix´ Analysis Company A C Product: quality. media. trade Company B Company Advanced Marketing BiMBA 2006 . where when. value chain. timing & cost Price: retail. benefits Target Segment: who.

etc«..US Finance debt liquidity cash flow Manage human resources decision process planning Advanced Marketing BiMBA 2006 .Differential Advantage Analysis Ability to« Company A..US Conceive / design technical resources human resources Produce physical resources human resources Market sales force distribution system service and sale policy advertising Ability to« Company A. etc«.

liberal return policy 5. 10= high) Company B Company C US Advanced Marketing BiMBA 2006 . mass distribution Overall rating (1 = low.Critical Success Factors Comparison Critical Success Company A Factors 1. Internet hype 3. hot design 2. trained sales reps 4.

Assessing Competitors¶ Will How crucial is this product to the firm? Company A very Company B not very none somewhat Company C very none very How visible is the very commitment to market? How aggressive are the managers? very Advanced Marketing BiMBA 2006 .

change due to      Changes in marketplace Changes in management Changes in financial goals Management judgment Simulation How to determine new direction? What will be competitors¶ reaction to our strategy? Advanced Marketing BiMBA 2006 . continue as is 2.What now? What will be competitors¶ strategies? 1.