ANALYSIS OF

THE
COMPETITION
Chapter 5.6 1

Michael Karl M. Barnuevo, MBA

ANALYSIS OF THE
COMPETITION
 The entrepreneur will find it difficult to compete if his competitors are unknown to him. This
makes it necessary to make an analysis of the competitors.
 In competitive analysis, the following must be determined:

1. Strengths and Weaknesses of the firm’s competitors

2. Strategies that will give the firm a competitive advantage
3. Barriers that can be developed to prevent competitors or would-be competitors from
exploiting the firm’s market
4. Any opportunity that can be exploited

Michael Karl M. Barnuevo, MBA 2

ANALYSIS OF THE
COMPETITION
 The competitors of any business may be either be or both direct and
indirect.
 Companies who offer the same product are direct competitors.
 Companies who offer different product but satisfies the same need
are indirect competitors.
 In this section, all of the direct and indirect competitors should
be included.

Michael Karl M. Barnuevo, MBA 3

ANALYSIS IF THE
COMPETITION
 The marketing Strategies of the firm’s competitors must also be analyzed.
Such action will provide clues as to which part of the target market the firm
must serve.
 The aim of the competitor analysis is to determine how the firm stands against
competition. After determining its position, the firm must take stock of its
strength and weaknesses and craft an appropriate strategy to achieve its
business objectives.
 In designing an effective business strategy, the entrepreneur will benefit from
using a prepared table of comparative strengths and weakness of competing
firms.

Michael Karl M. Barnuevo, MBA 4

EXAMPLE TABLES
Direct Competitors
Key Asset and Skills Our Company Competitor A Competitor B Competitor C
Superior Product Strength Weakness Weakness Strength
Good Location Weakness Strength Weakness Strength
Strong Sales Team Weakness Strength Strength Strength
Strong Financial Health Weakness Weakness Strength Strength
Indirect Competitors
Key Asset and Skills Our Company Competitor A Competitor B Competitor C
Superior Product Strength Weakness Weakness Strength
Good Location Weakness Strength Weakness Strength
Strong Sales Team Weakness Strength Strength Strength
Strong Financial Health Weakness Weakness Strength Strength
Michael Karl M. Barnuevo, MBA 5