DESCRIPTION
The Competitive Comparison Framework is a summary of analytics and other information comparing competitors along key criteria. Its structure should be tailored to our specific industry and will commonly include the following pieces of information:
• Background information on the company
• Key financials
• Market position
• Product portfolio
• Competitive strengths and weaknesses
This business framework can be used to identify the number, names, and focus of key players in the industry. It can be used to identify strengths and weaknesses of the various players. Furthermore, it can be used to identify the gaps in our company’s portfolio and capabilities, as well as the relative strength of our company.
The Competitive Comparison Analysis document delves into the critical dimensions of financial performance, market performance, costs, capabilities, and strategies. It provides a comprehensive approach to dissecting each competitor's strengths and weaknesses. The analysis covers essential questions such as how revenues and costs have evolved, the primary customer segments, and the efficiency of different operating models. This granular level of detail equips executives with the insights needed to make informed strategic decisions.
The document emphasizes the importance of cost and profitability analysis, highlighting its impact on strategic decisions. By understanding cost drivers and allocation methods, companies can prioritize customer and product segments, determine performance measures, and decide on investment in new products or customer segments. The analysis also guides decisions on which processes to keep in-house or outsource, ensuring optimal resource allocation.
Capabilities and strategies are explored as powerful competitive weapons. The document illustrates how understanding competitors' strategic functions can reveal opportunities for value addition. Real-world examples, such as Honda's diversification from small engines to a broader product range and Walmart's expansion strategy, demonstrate how leveraging capabilities can drive growth. This focus on capabilities is central to identifying strategic opportunities and achieving superior performance in the market.
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Source: Best Practices in Competitive Analysis PowerPoint Slides: Competitive Comparison Analysis PowerPoint (PPT) Presentation, LearnPPT Consulting
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