Competitive Analysis and

Strategy
 Competitor Analysis and Strategic Group
Mapping

This
Competition Dynamics
Lecture
Game Theory
So, how strategy can lead to success?

Competitive Long term

Plan Position
Advantage success
Competitor Analysis and Strategic
Group Mapping
“In competitive markets, firms need to develop competitive
positioning strategies carefully relative to their competitors
in order to achieve enduring competitive success.”

Michael E. Porter
 Competitors
- Any firm, group, or individual trying to reduce a firm’s
competitive advantage.

- Another business that might take money away from you.

- As much competition is often regarded as a threat, but it plays

a significant role in the development of a company; how?
- It encourages a business to find unique ways to attract
customers to their products and services away from that of
their rivals, and in doing so they can successfully achieve and
sustain a competitive advantage.
If you know the enemy and know yourself, you need
not fear the result of a hundred battles
 Competitive Analysis

- It is the foundation of strategic positioning in any industry to assess

their competitors’ market strategies, product offerings, and core
capabilities providing insights into how they can respond effectively.
- It reveals how rivals structure services, reach different customer
segments, and adjust to regulatory requirements.
- A structured way of understanding your market and competitors. It
helps you answer key questions like: Who are we up against? What are
their strengths and weaknesses? How do we position ourselves to win?
- It is an assessment of your competitors’ products, services and sales
tactics, evaluating their strengths and weaknesses relative to your
own*(which explain you start by your self ) .
Benefits of Competitive Analysis
1. Gain Market Insights

• Understand industry standards to meet and exceed expectations

• Discover untapped niche markets for new growth opportunities

2. Strengthen Competitive Positioning

• Differentiate products and services to stand out from competitors

• Distinguished brand for stronger customer recognition
• Stand out in marketing to attract and retain customers

3. Drive Performance & Growth

• Fulfill customer needs better than competitors by anticipating demands

• Measure growth to refine strategies and sustain success
How to perform a competitive analysis?

1. Identify Competitors 5. Audit Competitor Branding

Direct and indirect ones Examine brand identity,
messaging, and differentiation
2. Gather Market Data
Study competitors' products, tactics.
services, pricing, and customer
needs. 6. Assess Audience Engagement
Study customer reviews, social
3. Evaluate Market Positioning media interactions, and brand
Understand how competitors attract
loyalty.
and retain customers.

4. Analyze Marketing Strategies 7. Conduct a SWOT Analysis

Assess how competitors engage
their audience (advertising, 8. Identify your place in the
branding, promotions). market landscape

[Link]
competitive-analysis/
 The Battle Card…

Of some Of moderate Of high

importance to importance to importance to
buyers buyers buyers

Things we do that
they don’t
Things we do better
than them
Things we do equally
well
Things they do
better than us
Things they do we
don’t
Step 8: Identify your place in the market landscape
Strategic Group Analysis and Mapping
*To achieve enduring competitive success in an industry, a company must thoroughly
understand its competitive landscape and develop competitive positioning strategies. One
effective tool used to gain insight into direct competitors and analyse their market positions
is the strategic group analysis.

*Strategic groups are the companies, within the same industry, that:
1. Employ similar strategies with similar resources
2. Have comparable business models,
3. Have similar characteristics
4. Have similar market shares
5. Respond to market trends or competition in similar ways
6. Offer similar customer service

*Hence Competition is very fierce and aggressive

Benefits of Strategic Group Analysis
•Enhanced Competitor Insight: SGA differentiates strategic groups, clarifying
that direct competition exists only within specific clusters.
•Targeted Strategic Responses : By knowing which rivals pose the most direct
threat, organizations can design strategies that target those particular
competitors.
•Barrier Analysis: SGA identifies barriers, such as regulatory requirements or
capital needs, that restrict movement between groups, aiding organizations in
assessing growth avenues.
•Long-term Strategic Planning: Understanding strategic groups helps
organizations adapt to shifts within their clusters, enabling well-informed
strategic planning for sustainable success.
Key Steps in Implementing Strategic Group Analysis

[Link] Key Industry Characteristics: Define essential attributes like customer

segment focus, service type, and geographic scope.
[Link] Rivals Based on Key Characteristics: Group competitors according to
shared dimensions.
[Link] a Strategic Group Map: Plot competitors based on chosen strategic
dimensions to visualize relative positioning.
[Link] Competitive Dynamics: Assess the intensity of competition within and
between groups.
[Link] Opportunities and Threats: Identify unexploited opportunities and
anticipate threats based on group dynamics.
 Strategic Group Mapping

❖ A diagram that showcases the positioning of companies within an industry

based on key strategic characteristics (for example product features, target
market, pricing, market share, and brand reputation, etc..), to:
❑ Understand the Competitive Landscape to identify the strongest players
in the market and evaluate firm’s own strengths and weaknesses
relevant to this player.
❑ Pinpoint strategies that work and adapt them for firm’s own advantage
❑ Spot untapped opportunities within the industry
❑ highlight gaps /unmet needs in the market that competitors may be
neglecting