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CH 03

The document discusses competitor analysis. It defines strategic groups as competitors that pursue similar strategies and have similar characteristics. It outlines dimensions for analyzing competitors including size, growth, objectives, strategies and strengths/weaknesses. It also discusses identifying potential strengths/weaknesses by looking at successful/unsuccessful businesses and customer motivations.

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Yew Hai Yun
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25 views15 pages

CH 03

The document discusses competitor analysis. It defines strategic groups as competitors that pursue similar strategies and have similar characteristics. It outlines dimensions for analyzing competitors including size, growth, objectives, strategies and strengths/weaknesses. It also discusses identifying potential strengths/weaknesses by looking at successful/unsuccessful businesses and customer motivations.

Uploaded by

Yew Hai Yun
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Strategic Market Management

Global Perspectives

David A. Aaker and Damien McLoughlin


ISBN: 978-0-470-68975-2
www.wileyeurope.com/college/aaker

© Copyright 2010 John Wiley & Sons Ltd


1
Chapter Three

Competitor Analysis

© Copyright 2010 John Wiley & Sons Ltd


2
“Competition is always a fantastic thing, and the
computer industry is intensely competitive. Whether
it’s Google or Apple or free software, we’ve got some
fantastic competitors and it keeps us on our toes.”

Bill Gates
“If you know your strength it never becomes a
weakness. If the market knows your strength then
it becomes a weakness.”

Shailendra Singh
“The ability to learn faster than your competitors
may be the only sustainable competitive
advantage.”

Arie de Geus
Competitor Analysis
 Strategic Groups

– Pursue similar competitive strategies


– Have similar characteristics
– Have similar assets and competencies
Competitor Analysis
 Potential Competitors

– Market expansion
– Product expansion
– Backward integration
– Forward integration
– The export assets or competencies
– Retaliatory or defensive strategies
Understanding the
Competitors
Image
Imageand
and
Positioning
Positioning Objectives
Objectivesand
and
Size,
Size,Growth
Growth Commitment
Commitment
&&Profitability
Profitability

Strengths Competitor Current


Currentand
Strengthsand
and Competitor and
Weaknesses Past
PastStrategies
Strategies
Weaknesses Actions
Actions
Exit
ExitBarriers
Barriers Organization
Organization
and
andCulture
Culture
Cost
CostStructure
Structure Figure 3.2

© Copyright 2010 John Wiley & Sons Ltd


8
Figure 4.3
Relevant Assets and Competencies

1) What businesses have been successful over time?


What assets or competencies contributed to their
success?
What businesses have had chronically low
performance?
Why?
What assets or competencies do they lack?

Figure 4.4
Relevant Assets and Competencies
2) What are the key customer motivations?
What is needed to be preferred? What is needed
to be considered?

3) What assets and competencies represent industry


mobility (entry and exit) barriers?

4) What are the significant value-added components


in the value chain?

Figure 4.4
Key Learnings
 Competitors can be identified by customer choice (the set from which
customers select) or by clustering them into strategic groups, (firms that
pursue similar strategies and have similar assets, competencies, and other
characteristics). In either case, competitors will vary in terms of how intensely
they compete.

 Competitors should be analysed along several dimensions, including their size,


growth and profitability, image, objectives, business strategies, organisational
culture, cost structure, exit barriers, and strengths and weaknesses.

 Potential strengths and weaknesses can be identified by considering the


characteristics of successful and unsuccessful businesses, key customer
motivations, and value-added components.

 The competitive strength grid, which arrays competitors or strategic groups on


each of the relevant assets and competencies, provides a compact summary of
key strategic information.
Ancillary Slides
“There is one rule for industrialists and that is:
Make the best quality of goods possible at the
lowest cost possible, paying the highest wages
possible.”

Henry Ford
“We often give our enemies the means for our own
destruction.”

Aesop
“In business, the competition will bite you if you keep
running, if you stand still, they will swallow you.”

William Knudsen

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