Competitor Analysis Management Level Paper E 2 Project

Competitor Analysis § § In the previous lecture we have discussed, Porters’ competitor analysis

Competitor Analysis In this lecture we will discuss § Competitor information § Types of

Competitor Analysis Competitor information Collecting competitor information is important due to following; § To

Competitor Analysis q The types of information, § Competitors Strategy, once the identification of

Competitor Analysis q The types of information, § Competitors’ Goals & Objectives This can

Competitor Analysis q The types of information, § Competitors’ products & services It is

Competitor Analysis q The types of information, § Competitors’ resources & capabilities It is

Competitor Analysis q The Sources of information, There are various sources of information available

Competitor Analysis q The Sources of information, § Websites of competitors, The websites may

Competitor Analysis q The Sources of information, § Annual Reports and Accounts of Competitors

Competitor Analysis q The Sources of information, § Magazines and Journals Part of the

Competitor Analysis q The Sources of information, § Market Research Reports Market research reports

Competitor Analysis q The Sources of information, § Customer Research Reports These reports provide

Competitor Analysis q The Sources of information, Tudor (1992), provided the following categorization of

Competitor Analysis q The Sources of information, § Primary Sources, ØStatistical sources, similar to

Competitor Analysis q The Sources of information, § Primary Sources, ØNews papers and news

Competitor Analysis q The Sources of information, § Secondary Sources, Ø Market research reviews

Competitor Analysis q The Sources of information, § Secondary Sources, Ø Government publications, these

Competitor Analysis q The Sources of information, § Computer –based information Services, Ø CD

Competitor Analysis q The internet as a source of competitor information. Some competitor intelligence

Competitor Analysis Review MCQs Tudor (1992), has categorized the information sources in the following

Competitor Analysis Review MCQs The types of information that can be gathered related to

Competitor Analysis Levels of competitors Kotler (2008), identified four levels of competitors. Identifying the

Competitor Analysis Levels of competitors § Form Competitors, The firms that offer products to

Competitor Analysis Levels of competitors § Generic Competitors, the competitors who compete for the

Competitor Analysis Level of threat posed by competitors The extent to which competitors pose

Competitor Analysis Level of threat posed by competitors § The level of vertical integrations,

Competitor Analysis Level of threat posed by competitors § The number of rivals and

Competitor Analysis Level of threat posed by competitors § Entry and mobility barriers There

Competitor Analysis Review MCQs Not part of categorization related to levels of competitors? a.

Business Environment Review MCQs The levels of threat posed by competitors? a. b. c.

Competitive Advantage Lecture Summary We have discussed the § Competitor information § Sources of

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Competitor Analysis Management Level – Paper E 2 Project and Relationship Management Lecture - 011 Vidya Rajawasam ACMA CGMA MBA

Competitor Analysis § § In the previous lecture we have discussed, Porters’ competitor analysis framework BCG Matrix Levels of competitors Threats posed by competitors

Competitor Analysis In this lecture we will discuss § Competitor information § Types of research § Big Data

Competitor Analysis Competitor information Collecting competitor information is important due to following; § To understand what products/services competitors are offering to customers § Identify the main competitors in a market § Identify the threats pose by competitors § To monitor new entrants to the market

Competitor Analysis q The types of information, § Competitors Strategy, once the identification of competitors are finalized, the information should to be collected regarding their current and future strategies. It is important to establish, what products are offered to the market and how they operate within the market.

Competitor Analysis q The types of information, § Competitors’ Goals & Objectives This can be established through, by looking at activities undertaken by them. Examples, competitor moving into new markets, developing new products.

Competitor Analysis q The types of information, § Competitors’ products & services It is important to compare the products and services offered by competitor against the firms’ products and services. Examples, Pricing, Quality, Branding and Image of products

Competitor Analysis q The types of information, § Competitors’ resources & capabilities It is important to that the firm gauge the strength of competitors resources and capabilities. This allows the firm to assess the threat posed by them. Examples, Financial, technological, human, intellectual and physical resources.

Competitor Analysis q The Sources of information, There are various sources of information available to firms to undertake competitor analysis. The objective is to acquire more information about competitors and use the information to predict their behavior. The related sources are;

Competitor Analysis q The Sources of information, § Websites of competitors, The websites may contain information about strategy, objectives and past performance. Furthermore, Information about the where they operate, what products they offer and in what sectors they operate can also be obtained.

Competitor Analysis q The Sources of information, § Annual Reports and Accounts of Competitors , This information is available to public for larger companies. Contains information related to financial performance information, governance information and general information related to an organization.

Competitor Analysis q The Sources of information, § Magazines and Journals Part of the information can be obtained from business or industry management journals, Product information magazines / journals and technical journals related to specific industries.

Competitor Analysis q The Sources of information, § Market Research Reports Market research reports and reviews are a very good source of competitor information. Information about market share, market information, marketing activity information and product information can be obtained from this source.

Competitor Analysis q The Sources of information, § Customer Research Reports These reports provide information about consumer attitudes, tastes, demographics, buying patterns etc. . . The related customer information can be very costly to obtain and the information can provide very specific data related to competitor analysis.

Competitor Analysis q The Sources of information, Tudor (1992), provided the following categorization of information sources; § Primary Sources, There are several sources of primary information. ØAnnual returns and statements of competitors. ØTranscript services from news papers.

Competitor Analysis q The Sources of information, § Primary Sources, ØStatistical sources, similar to government censuses and surveys related to household expenses, demographics etc… ØMagazines and journals, These sources include Trade media, Business & Management Journals, Technical Journals.

Competitor Analysis q The Sources of information, § Primary Sources, ØNews papers and news letters related to specific industries, these sources include the business industry press releases , industry bulletins etc. . Ø Patents registered with the National Patents office.

Competitor Analysis q The Sources of information, § Secondary Sources, Ø Market research reviews and Reports, these reports are produced by specialist research firms similar to Mintel, Economist Intelligent Unit etc. . ØAbstracts, these sources include index journals and current awareness services These are specialist databases which include technical articles.

Competitor Analysis q The Sources of information, § Secondary Sources, Ø Government publications, these publications include, special reports of select committees on particular industries, economic forecasts etc. . ØGray Literature, these sources include conference reports, special research papers, maps and photographs.

Competitor Analysis q The Sources of information, § Computer –based information Services, Ø CD Rom Based abstracts and journals. ØOn-line databases of professional and academic journals, news papers and business information. ØInternet resources

Competitor Analysis q The internet as a source of competitor information. Some competitor intelligence information is freely available from the internet. This can be a valuable starting point in developing detailed competitor information profiles. The published information sources can only provide partial information and strategic information mostly likely to be confidential and not freely available.

Competitor Analysis Review MCQs Tudor (1992), has categorized the information sources in the following manner? a. b. c. d. Basic sources of information. Secondary sources of information. Primary sources of information. Market Research information.

Competitor Analysis Review MCQs The types of information that can be gathered related to the competitor analysis exercise include? a. b. c. d. Products and services Management profiles Financial Marginal costing

Competitor Analysis Levels of competitors Kotler (2008), identified four levels of competitors. Identifying the levels of competitors will help the firm to understand the basis on which they try to compete in the market and also it will assist them in formulating the competitive strategy.

Competitor Analysis Levels of competitors § Brand Competitors, The firms who offer similar products to same customers. Example, Coca Cola and Pepsi § Industry Competitors, the suppliers who produce similar goods/services, with variations in size and structure. Example, Singapore air lines and British Airways.

Competitor Analysis Levels of competitors § Form Competitors, The firms that offer products to satisfy the similar needs of customers, but the products are technically quite different. Example, Speed boats and Sports Cars.

Competitor Analysis Levels of competitors § Generic Competitors, the competitors who compete for the same income. Example, Home improvement products, golf clubs

Competitor Analysis Level of threat posed by competitors The extent to which competitors pose a threat to an organization depends on several factors; § Cost Structure, if the rival has a high cost structure, the firm will not be able to compete with a cost leader already operating in the same market.

Competitor Analysis Level of threat posed by competitors § The level of vertical integrations, High levels of vertically integrated companies have considerable strength in a market. They basically buy their products from their own suppliers.

Competitor Analysis Level of threat posed by competitors § The number of rivals and the level of extent of differentiation in the market, If there are large number of rivals in the market, it reduces the risk of one competitor breaking from the rest and attempting to knockout another. Instead each will try to produce differentiated niche products compete.

Competitor Analysis Level of threat posed by competitors § Entry and mobility barriers There are certain costs that a firm has to incur when the firm is going to enter and exit from the market. Example, Levi Strauss has a very strong presence in market for casual wear. There were certain costs that they had to incur when they entered into the tailored suits market.

Competitor Analysis Review MCQs Not part of categorization related to levels of competitors? a. b. c. d. Future competitors Brand Competitors Form Competitors Low income competitors

Business Environment Review MCQs The levels of threat posed by competitors? a. b. c. d. Degree of vertical integration Profitability status Cost leader status Cost Structure

Competitive Advantage Lecture Summary We have discussed the § Competitor information § Sources of information § Levels and threats posed by competitors

Competitor Analysis Management Level – Paper E 2 Project and Relationship Management Lecture - 011 Vidya Rajawasam ACMA CGMA MBA