Note 5 Competitor Analysis Competitive Intelligence 2012 Pearson

Note 5 Competitor Analysis— Competitive Intelligence © 2012 Pearson Education, Inc. publishing Prentice Hall.

Introduction § A comprehensive competitor analysis includes the following four areas: § § Long-term objectives and motivations of the competitor Strengths and weaknesses Strategies Marketing tactics 2 © 2012 Pearson Education, Inc. publishing Prentice Hall.

Long-Term Objectives and Motivations of the Competitor § The objectives determine the strategy and tactical moves § From the objectives one can derive what the motivations of your competitor are in a specific business or market § To identify the long term objectives and motivations of a competitor examine: § § § Vision and mission statements Annual reports Press releases Analyst reports Presentations and speeches of executives 3 © 2012 Pearson Education, Inc. publishing Prentice Hall.

Strengths and Weaknesses § The assessment of strengths and weaknesses helps you to: § Predict competitor’s actions and initiatives § To identify points of difference to position your products and services 4 © 2012 Pearson Education, Inc. publishing Prentice Hall.

Steps in the Assessment of Strengths and Weaknesses Success factors in a market have to be determined The success factors are weighted according to their importance The competitor is rated on each success factor Multiply the rating by the importance weight 5 © 2012 Pearson Education, Inc. publishing Prentice Hall.

Figure Note 5 -1 - Strengths and Weakness Analysis 6 © 2012 Pearson Education, Inc. publishing Prentice Hall.

Strategies § The strategy profile illustrates the strategic priorities and compares them with your own company § You can identify the areas of strategic overlap and areas of difference § A comprehensive strategy assessment leads to a strategy profile containing: § Portfolio analysis § Customer value analysis § Growth strategy 7 © 2012 Pearson Education, Inc. publishing Prentice Hall.

Strategies § Marketing approach § Offensive strategy § Defensive strategy 8 © 2012 Pearson Education, Inc. publishing Prentice Hall.

Figure Note 5 -2 - Competitor Strategy Profile 9 © 2012 Pearson Education, Inc. publishing Prentice Hall.

Marketing Tactics § Consists of the assessment of the individual marketing decisions § They relate to positioning, product and brand decisions, pricing, distribution and sales management, and communication § In this step you assess what the competitors actually do § Sources: § Price lists § Advertising campaigns § Promotions 10 © 2012 Pearson Education, Inc. publishing Prentice Hall.

Marketing Tactics § § § Sales force meetings Trade shows Fairs Shared customers Shared distributors 11 © 2012 Pearson Education, Inc. publishing Prentice Hall.

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