COMPETITOR COMPETITOR ANALYSISANALYSIS

COMPETITORSCOMPETITORS

TESCO’S COMPETITORSTESCO’S COMPETITORS

Asda

Sainsbury Morrison SparAldi

Marks and Spencer

LlydlNetto

COMPETITORSCOMPETITORS BRITISH AIRWAYS COMPETITORSBRITISH AIRWAYS COMPETITORS

Easy jet RyanairAirFrance

Lufthansa

Virgin

Emirates

Swiss

COMPETITORSCOMPETITORS FORD MOTOR COMPETITORSFORD MOTOR COMPETITORS

Mercedes RoverHonda Jaguar BMW Toyota

Opel

COMPETITORSCOMPETITORS ADDIDAS COMPETITORSADDIDAS COMPETITORS

PUMANIKE Le coq Sportif

JJB

UMBRO

COMPETITORSCOMPETITORS NOKIA MOBILE PHONENOKIA MOBILE PHONE

Sony EMotorola

LG Samsung VirginPanasonic

Siemens

Philips

COMPETITORSCOMPETITORS

SONY ELECTRONICSSONY ELECTRONICS

PanasonicSharp LG

Philips

COMPETITORSCOMPETITORS CHELSEA FOOTBALL CLUBCHELSEA FOOTBALL CLUB

Bolton FC

ManchesterUnited FC

ArsenalFC

LiverpoolFC

ReadingFC

TottenhamFC

BlackburnFC

MiddlesbroughFC

Manchester CityFC

COMPETITORSCOMPETITORS COCA COLACOCA COLA

Pepsi coFanta

NEXT

Debenhams

House of Fraser Marks and Spencer

Boots

WHAT YOU SHOULD KNOW AT THE WHAT YOU SHOULD KNOW AT THE END OF THIS LESSONEND OF THIS LESSON

What is competition?What is competition? Who is a competitor?Who is a competitor? Against whom are we competing?Against whom are we competing? What Strengths and Weaknesses do they possess?What Strengths and Weaknesses do they possess? What are your competitors objectives?What are your competitors objectives? What strategies are they pursuing and how successful are What strategies are they pursuing and how successful are

they?they? How are they likely to behave and, in particular, how are How are they likely to behave and, in particular, how are

they likely to react to offensive moves?they likely to react to offensive moves? Competitive Relations EvaluationCompetitive Relations Evaluation How to identify competitor’s objectivesHow to identify competitor’s objectives Competitive ResponsesCompetitive Responses Competitive Information SystemCompetitive Information System

COMPETITOR ANALYSIS: STETP 1COMPETITOR ANALYSIS: STETP 1The strength of the competitor’s positioning The strength of the competitor’s positioning What market share does each competitor What market share does each competitor

have?have?How strong is each competitor’s imageHow strong is each competitor’s imageWhat is their position within the trade?What is their position within the trade?Is there a particular focus in certain markets?Is there a particular focus in certain markets?

The strength of the competitive offeringsThe strength of the competitive offerings In relative terms, how good is each element of In relative terms, how good is each element of each competitor’s marketing mix?each competitor’s marketing mix?How satisfied is each competitor’s customer How satisfied is each competitor’s customer base.base.What levels of customer loyalty exist?What levels of customer loyalty exist?How satisfied are each competitor’s distributorsHow satisfied are each competitor’s distributors

The strength of the competitors’ resourcesThe strength of the competitors’ resources How profitable is each competitor?How profitable is each competitor?What is the size of each firm’s resource base?What is the size of each firm’s resource base?How big and efficient is the production base?How big and efficient is the production base?How fast and effective are the product How fast and effective are the product development processes?development processes?

Understanding the competitors’ strategiesUnderstanding the competitors’ strategies What is each competitor’s strategic intent?What is each competitor’s strategic intent?What are their actions and probable reactions?What are their actions and probable reactions?

COMPETITOR ANALYSIS: STEP 2COMPETITOR ANALYSIS: STEP 2Competencies/capabilities Competitors’ positionCompetencies/capabilities Competitors’ position Com1 Com2 Com3 Com4 Com5Com1 Com2 Com3 Com4 Com5Competitive stance Competitive stance Price levelsPrice levelsBrand recognitionBrand recognitionDistribution networkDistribution networkAfter sales serviceAfter sales servicePromotion/public relationsPromotion/public relationsStrategic focus5Strategic focus5Manufacturing skills Manufacturing skills Financial stabilityFinancial stabilityTechnology skills Technology skills New product innovationsNew product innovationsStrong/high Above average Average Less Average WeakStrong/high Above average Average Less Average Weak

Q. You work as the Q. You work as the

COMPETITOR ANALYSISCOMPETITOR ANALYSIS

EVALUATING COMPETITIVE EVALUATING COMPETITIVE LEADERSHIP AND ANALYSING LEADERSHIP AND ANALYSING HOW ORGANISATIONS HOW ORGANISATIONS COMPETECOMPETEIn essence, five types of relationship can develop In essence, five types of relationship can develop

between an organisation and its competitors:between an organisation and its competitors: ConflictConflict CompetitionCompetition CoexistenceCoexistence CooperationCooperation CollusionCollusion

COMPETITORS COMPETITORS OBJECTIVES:OBJECTIVES:

To be the dominant businessTo be the dominant business To make more profit, sales and market shareTo make more profit, sales and market share To perform better than other rivalsTo perform better than other rivals To get more customers than their counterpartsTo get more customers than their counterparts To be an outstanding business To be an outstanding business To grow faster than other businessesTo grow faster than other businesses To be the market leaderTo be the market leader

COMPETITOR INTELLIGENCE COMPETITOR INTELLIGENCE SYSTEMSYSTEM

Desk research Databases

Internal Information

Market research

Industry analysis

Industry mapping

Critical success factors

Competitive profilling

Special Competitor studies

Value chain analysis

Benchmarking

Building competitive advantage

CRITICAL SUCCESS CRITICAL SUCCESS FACTORS.FACTORS.

MARKETING MIXMARKETING MIX STRATEGIESSTRATEGIES OBJECTIVESOBJECTIVES MISSIONMISSION ENVIRONMENTAL ANALYSISENVIRONMENTAL ANALYSIS SWOT ANALYSISSWOT ANALYSIS IMPLEMENTATIONIMPLEMENTATION MONITOR AND CONTROLMONITOR AND CONTROL

ASSIGNMENT – ASSIGNMENT – BENCHMARKING:BENCHMARKING:You are the Managing Director of Morrison andYou are the Managing Director of Morrison and

you want to improve on your business. One ofyou want to improve on your business. One of

your strategy to improve is to carry outyour strategy to improve is to carry out

benchmarking exercise. Please state below howbenchmarking exercise. Please state below how

you will carry out the benchmarking exercise:you will carry out the benchmarking exercise:

Factors to Factors to considerconsider

MorrisonMorrison TescoTesco

Market shareMarket share

PricesPrices

ProfitProfit

SalesSales

ServicesServices

StrategiesStrategies

ObjectiveObjective

MissionMission

StaffStaff

BENCHMARKING: You can use criteria such as BENCHMARKING: You can use criteria such as : : Good, bad, Good, bad, average, high, low, bad, excellent, no comment.average, high, low, bad, excellent, no comment.Factors to considerFactors to consider MKET CollegeMKET College Dudley College or any other Dudley College or any other

college of your choicecollege of your choice

CoursesCourses

FeesFees

No of StudentsNo of Students

Customer ServiceCustomer Service

Library & resourcesLibrary & resources

ComputersComputers

Other facilitiesOther facilities

LecturersLecturers

ClassroomsClassrooms

OrganisationOrganisation

COMPETITORSCOMPETITORS

STRONG COMPETITORSSTRONG COMPETITORS WEAK COMPETITORSWEAK COMPETITORS

COMPETITORSCOMPETITORS

CLOSE COMPETITORSCLOSE COMPETITORS DISTANT COMPETITORSDISTANT COMPETITORS

COMPETITORSCOMPETITORS

GOOD COMPETITORGOOD COMPETITOR BAD COMPETITORBAD COMPETITOR

COMPETITORSCOMPETITORS

DirectDirect IndirectIndirect

PORTER’S FIVE FORCE MODEL PORTER’S FIVE FORCE MODEL OF THE COMPETITIVE OF THE COMPETITIVE ENVIRONMENTENVIRONMENT

MICHAEL PORTER’S FIVE FORCE MICHAEL PORTER’S FIVE FORCE ANALYSIS OF THE COMPETITIVE ANALYSIS OF THE COMPETITIVE STRUCTURESTRUCTURE

Competitive Rivalry

Potential entrants

Suppliers Buyers

Substitutes

Bargaining

Power

Threat of entrants

Bargaining

Power

Threat of substitutes

Source: Exploring Corporate Strategy by Garry Johnson and Kevan ScholesAdapted from M. Porter, Competitive Strategy, Free Press,1980, p. 4.

PORTER’S VALUE CHAINPORTER’S VALUE CHAIN

Porter’s Value ChainPorter’s Value ChainFirm infrastructure

Technology developmentHuman resource management

Procurement

Inbound Operations Outbound ServiceLogistics Logistics

Marketing and sales

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WHAT COMPANIES NEED TO WHAT COMPANIES NEED TO KNOW ABOUT OTHER KNOW ABOUT OTHER COMPETITORSCOMPETITORS

SalesSales CustomersCustomers ProductsProducts Advertising and promotionAdvertising and promotion Distribution and sales forceDistribution and sales force PricePrice FinanceFinance Management Management Other information needed.Other information needed.