COMPETITOR ANALYSIS
COMPETITORS TESCO’S COMPETITORS Asda Marks and Spencer Aldi Sainsbury Morrison Spar Netto Llydl
COMPETITORS BRITISH AIRWAYS COMPETITORS Emirates Easy jet Ryanair Swiss Virgin AirFrance Lufthansa
COMPETITORS FORD MOTOR COMPETITORS Opel Mercedes Rover BMW Toyota Honda Jaguar
COMPETITORS ADDIDAS COMPETITORS UMBRO PUMA JJB NIKE Le coq Sportif
COMPETITORS NOKIA MOBILE PHONE Motorola Philips Sony E LG Samsung Siemens Virgin Panasonic
COMPETITORS SONY ELECTRONICS Panasonic LG Sharp Philips
COMPETITORS CHELSEA FOOTBALL CLUB Manchester City FC Bolton FC Middlesbrough FC Manchester United FC Arsenal FC Liverpool FC Tottenham FC Blackburn FC Reading FC
COMPETITORS COCA COLA Pepsi co Fanta NEXT Debenhams House of Fraser Marks and Spencer Boots
WHAT YOU SHOULD KNOW AT THE END OF THIS LESSON What is competition? Who is a competitor? Against whom are we competing? What Strengths and Weaknesses do they possess? What are your competitors objectives? What strategies are they pursuing and how successful are they? How are they likely to behave and, in particular, how are they likely to react to offensive moves? Competitive Relations Evaluation How to identify competitor’s objectives Competitive Responses Competitive Information System
COMPETITOR ANALYSIS: STETP 1 The strength of the competitor’s positioning What market share does each competitor have? How strong is each competitor’s image What is their position within the trade? Is there a particular focus in certain markets? The strength of the competitive offerings In relative terms, how good is each element of each competitor’s marketing mix? How satisfied is each competitor’s customer base. What levels of customer loyalty exist? How satisfied are each competitor’s distributors The strength of the competitors’ resources How profitable is each competitor? What is the size of each firm’s resource base? How big and efficient is the production base? How fast and effective are the product development processes? Understanding the competitors’ strategies What is each competitor’s strategic intent? What are their actions and probable reactions?
COMPETITOR ANALYSIS: STEP 2 Competencies/capabilities Competitors’ position Com1 Com2 Com3 Com4 Com5 Competitive stance Price levels Brand recognition Distribution network After sales service Promotion/public relations Strategic focus5 Manufacturing skills Financial stability Technology skills New product innovations Strong/high Above average Average Less Average Weak
Q. You work as the
COMPETITOR ANALYSIS
EVALUATING COMPETITIVE LEADERSHIP AND ANALYSING HOW ORGANISATIONS COMPETE In essence, five types of relationship can develop between an organisation and its competitors: Conflict Competition Coexistence Cooperation Collusion
COMPETITORS OBJECTIVES: To be the dominant business To make more profit, sales and market share To perform better than other rivals To get more customers than their counterparts To be an outstanding business To grow faster than other businesses To be the market leader
COMPETITOR INTELLIGENCE SYSTEM Industry analysis Building competitive advantage Industry mapping Desk research Databases Benchmarking Critical success factors Market research Internal Information Competitive profilling Value chain analysis Special Competitor studies
CRITICAL SUCCESS FACTORS. MARKETING MIX STRATEGIES OBJECTIVES MISSION ENVIRONMENTAL ANALYSIS SWOT ANALYSIS IMPLEMENTATION MONITOR AND CONTROL
ASSIGNMENT – BENCHMARKING: You are the Managing Director of Morrison and you want to improve on your business. One of your strategy to improve is to carry out benchmarking exercise. Please state below how you will carry out the benchmarking exercise:
Factors to consider Morrison Tesco Market share Prices Profit Sales Services Strategies Objective Mission Staff
BENCHMARKING: You can use criteria such as : Good, bad, average, high, low, bad, excellent, no comment. Factors to consider MKET College Dudley College or any other college of your choice Courses Fees No of Students Customer Service Library & resources Computers Other facilities Lecturers Classrooms Organisation
COMPETITORS STRONG COMPETITORS WEAK COMPETITORS
COMPETITORS CLOSE COMPETITORS DISTANT COMPETITORS
COMPETITORS GOOD COMPETITOR BAD COMPETITOR
COMPETITORS Direct Indirect
PORTER’S FIVE FORCE MODEL OF THE COMPETITIVE ENVIRONMENT
MICHAEL PORTER’S FIVE FORCE ANALYSIS OF THE COMPETITIVE STRUCTURE Potential entrants Threat of entrants Competitive Rivalry Bargaining Power Bargaining Suppliers Buyers Power Threat of substitutes Substitutes Source: Exploring Corporate Strategy by Garry Johnson and Kevan Scholes Adapted from M. Porter, Competitive Strategy, Free Press, 1980, p. 4.
PORTER’S VALUE CHAIN
Technology development Human resource management Porter’s Value Chain Firm infrastructure Technology development Human resource management Procurement Support activities Primary activitites Inbound Operations Outbound Service Logistics Logistics Marketing and sales 29
WHAT COMPANIES NEED TO KNOW ABOUT OTHER COMPETITORS Sales Customers Products Advertising and promotion Distribution and sales force Price Finance Management Other information needed.