Competitive Intensity Identify competitors To measure competitive intensity, a company needs to identify the competitors it will face. The task is to develop a better understanding of the threats and opportunities associated with various participants. The online firm can simply use search engines to begin identifying competitors, visit the online businesses, and obtain a very good understanding of their offerings. A useful tool for identifying direct and indirect competitors is the profiling approach (handout).

Competitive Intensity Identify competitors (Cont.) Direct competitors Companies in the same industry and rivals to each other Companies that are offering products or services that are “close substitutes” for each other Companies that reach and compete for the same customers Indirect competitors Substitute producers – companies that, though in different industries, produce products and services that “perform the same function” Adjacent competitors – companies that do not currently offer products and services that are direct substitutes, but they have the potential to quickly do so

Competitor Profiling – Eastman Kodak

Competitive Intensity Competitor maps We need to map the competitors to the target segments. We need to map out where current competitor companies are participating and their effectiveness in delivering benefits to our target customers. The competitor mapping can be used to record the relative strengths and weaknesses of current competitors and their offerings at each relevant cell in the map. The mapping also allows us to assess the current player performance in meeting the customer standard, and an indication of the potential for us to move in and win.

Competitor Mapping for Priceline