Professional Documents
Culture Documents
6th edition
Chapter 5
Competitor Analysis
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Introduction
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Balancing Orientations
• Competitor-centered
We were going to obsess
• Customer-centered over our customers and
not our competitors. We
watch our competitors,
learn from them, see the
things that they were doing
for customers and copy
those things as much as
we can. But we were never
going to obsess over them.
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The New Age of Innovation
• The pair's book, The New Age of Innovation:
Driving Co-Created Value Through Global
Networks , revolves around two ideas, laid out
on the first page of the first chapter.
• N=1 states that "value is based on unique,
personalized experiences of consumers." That
is, even companies serving 100 million
consumers need to focus on individuals.
• R=G, meanwhile, argues that since no
company can hope to satisfy the varied
expectations of so many consumers, it must
diversify how it operates.
• "All firms will access resources from a wide
variety of other big and small firms—a global
ecosystem," write Prahalad and Krishnan.
• In other words, companies' internal focus
should be on gaining access to resources, not
necessarily owning them.
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The New Age of Innovation
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Competitor Intelligence
1. Benchmarking against rivals.
2. The dimensions of competitor analysis
3. The choice of good competitors
4. The origin, sources, and dissemination
competitive information.
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1. Competitive Benchmarking
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Examples of Levels of Competition
Baseball
cards
Bottle Video
Fast water Games
Food
Regular
colas Diet lemon Ice
Beer limes Cream
Diet-Rite
Cola
Fruit
flavored Diet
Diet Pepsi
colas Coke Wine
Product from
competition: Lemon
Product category
diet colas limes
Juices competition:
soft drinks
Coffee
Generic competition:
beverages
Budget competition:
food & entertainment
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Five Forces Determining Segment
Structural Attractiveness (Michael
Porter’s)
Potential Entrants
(Threat of Mobility
Industry
Suppliers (Supplier Buyers (Buyer
Competitors
power) power)
(Segment rivalry)
Substitutes (Threat
of substitutes)
11-9
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Selecting Competitors
• Strong versus Weak
• Close versus Distant
• “Good” versus “Bad”
11-10
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Defining Competitive Position
• Market Leader
• Market Challenger
• Market Follower
• Market Nichers
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Figure 5.1
The targets of competitor analysis
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2. The components of competitor analysis (Figure 5.2 )
Competitor analysis should be based on scanning direct and indirect competition within
the industry
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2. The components of competitor analysis (Figure 5.2 )
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Competitor objectives (Figure 5.3 )
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Figure 5.4
Competitor strategies
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Figure 5.5
The value chain and direct product costing
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Figure 5.6
Competitor resources
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Figure 5.7
Competitor capabilities
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Figure 5.8
Future competitor strategies
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3. Good competitors (Figure 5.9)
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4. Sources of competitor information (Figure 5.10)
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Figure 5.11
Learning from competitors
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