1. Unit 1: Marketing
Competitor analysis
05/02/2018

2. Objective’s Recap PESTLE analysis Introduction to competitor analysis
Competitive benchmarking
Dimensions of competitor analysis
Sources and dissemination of competitor information
05/02/2018

3. Recap
PESTLE analysis
05/02/2018
Fda Business

4. How important is competitor analysis?
“if you know your enemy as you know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory you gain you will suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle” (Sun Tzu, 1981, pp115, Marketing Strategy and Competitive positioning, Graham Hooley et al 2008)
05/02/2018

5. Benchmarking
A process of measuring your companies strategies and operations against ‘best in class’ companies, both inside and outside your own industry
Who to benchmark against
What aspects of business to benchmark
Relevant data collection
Comparison of own processes
05/02/2018
Fda Business

6. Benchmarking So, which aspects of business do we need to benchmark?
Who to benchmark against?
Market/industry leaders
Why are they a success?
Non-profit organisations' i.e. universities
New entrants strengths from which an organisation can learn
Can also benchmark against a process of an organisation in a different industry i.e. finance within supermarkets
So, which aspects of business do we need to benchmark?
All aspects of business across the complete value chain however will focus on certain processes including; costs, impact on customer satisfaction
05/02/2018
Fda Business

7. Benchmarking Collecting relevant data
Swain, 1993 suggests 3 main sources of competitor information;
Published sources
Data sharing
Direct interviews
How important is data from competitors?
Comparison with own processes
Stick with your own and continuous improvement
Overhaul operations due to being inadequate
Adopt best practice from other industries
05/02/2018
Fda Business 7

8. Exercise 1
In pairs think of examples within a chosen organisation where the practices of benchmarking we have discussed can be applied
05/02/2018

9. Dimensions of competitor analysis
Whole industry must be scanned even indirect competitors i.e. the UK financial services sector and supermarkets
Substitutes tend to be the major threat i.e. downloads vs the music industry (pre-recorded CD’s vs Apple)
Lehmann and Winer (1991) suggest four main stages in competitor analysis
05/02/2018

10. The components of competitor analysis
Research and discuss the four stages outlined by Lehmann and Winer (1991)
Assess competitors current and future strategies
Assess competitors current strategy
Assess competitors resource profile
Predict competitors future strategies

11. Assessing competitors current and future strategies
Identification of the market/markets they have chosen to compete in
The way in which they have chosen to operate/compete – strategic focus
Supporting marketing mix adopted

12. Sources of competitor information
What they say about themselves
Advertisements (media and message
Recruitment ads
Promotional material
Technical reports
Press releases
Company reports
What others say about them
Newspapers and magazines
Trade sources
Customers
Market reports (i.e. keynote)

13. Smashhits case study
Complete question to attached case study and discuss findings with rest of group next week

14. Further research
Principles of Marketing: Brassington and Pettitt (2003); pp
Marketing concepts and strategies: Dibb et al (2006); pp 50-59

15. Recap on activities to be completed
Exercise 1 – application of the practices of benchmarking
Lehmann and Winer (1991) – components of competitor analysis – research and discuss
Smashhits case study