Competitive Analysis (PowerPoint PPT)

From a competitive strategy viewpoint, a competitor is someone who poses some threat to you or in whose business there is some opportunity for you.

Competitive analysis is...

Crucial to determining the attractiveness of a strategic initiative.
Aims to understand competitors and competitor positioning; this forms the basis for addressing top-level competitive issues.
Critical (though often ignored) element of Strategy Formulation and has become even more critical in Online/Digital Strategy.

This document delves into the intricacies of defining competitors, acknowledging that it's not always straightforward. It categorizes competitors into those vying for the same product, substitutes fulfilling the same value stream, and those with comparable production capabilities. Real-world examples like BA vs. Virgin Atlantic and Unilever vs. McDonald's illustrate these distinctions, emphasizing the complexity of competitive landscapes.

The XYZ Approach to Competitive Analysis offers a structured methodology for dissecting competitive environments. It includes comprehensive guidelines for researching private companies, leveraging both secondary and primary resources. This section is particularly valuable for industries with numerous privately held firms, where data is often scarce. The document outlines key resources like Hoover's Guide and D&B Reports, ensuring thorough and reliable research.

Porter's Five Forces Model is utilized to broaden the competitor set, identifying less obvious players. This model helps in understanding the threats of new entrants, the power of suppliers and buyers, and the intensity of competition. It also highlights the importance of substitutes, which can often be overlooked. This holistic view ensures a robust competitive analysis, providing insights into various market dynamics.

The document also includes a detailed competitor profile checklist, covering aspects from strategic intent to business systems. It emphasizes the need to gather basic and advanced profile information, such as sales growth, market share, and operational efficiencies. This comprehensive approach ensures that all critical facets of competitors are analyzed, providing a solid foundation for strategic decision-making.