Chapter-04

Competitive Analysis

Introduction

Competitive analysis is the process of

identifying, evaluating, and understanding
competitors to make better business
decisions. It helps a company recognize its
market position and adapt strategies for
growth or defense.

Competitive analysis is an essential component of corporate strategy. It is argued that most

firms do not conduct this type of analysis systematically enough. Instead, many enterprises
operate on what is called "informal impressions, conjectures, and intuition gained through the
tidbits of information about competitors every manager continually receives." As a result,
traditional environmental scanning places many firms at risk of dangerous competitive
blindspots due to a lack of robust competitor analysis. It is important to conduct the competitor
analysis at various business stages to provide the best possible product or service for customers.

Competitive Analysis Benefits

a. New Entrants
Benefit: Helps a company detect new competitors entering the market.

Example: When Zoom rose in popularity during the COVID-19 pandemic, competitors like
Microsoft Teams and Google Meet quickly noticed and enhanced their features to remain
competitive.

b. Surprise Avoidance

Benefit: Prevents being blindsided by competitor actions.

Example: Coca-Cola conducts regular competitive analysis to monitor new beverage trends.
This helped them quickly respond to the rising demand for low-sugar drinks when PepsiCo
launched several new health-oriented products.

c. Competitor Forecast

Benefit: Predict what a competitor might do next.

Example: Apple often analyzes Samsung's patent filings and product release patterns to
forecast new smartphone features and time their own launches accordingly.

d. Time for Corrective Action

Benefit: Gives time to react strategically.

Example: If Nike sees Adidas launching a new sustainability campaign, it may accelerate its
own eco-friendly product line to stay relevant and not lose customers who care about the
environment.

e. Customer Perception

Benefit: Understand how customers see your competitors.

Example: Tesla studies customer reviews and social media sentiment about Rivian and other
EV startups to understand what features or services customers like or dislike, then adjusts
accordingly.

f. Lessons Learned

Benefit: Learn from others' successes and mistakes.

Example: Netflix learned from the failure of Blockbuster, understanding that digital
streaming was the future and investing heavily in it early on.
The Diagram illustrates the competitive analysis process, which is a strategic framework used
by businesses to gain insights into their competitive landscape. This process involves three key
stages:
Information (Competitive Intelligence):
This initial phase focuses on gathering data about competitors. This may include identifying
key competitors, understanding their objectives and strategies, and assessing their strengths
and weaknesses. Methods for gathering information can involve reviewing competitors'
marketing materials, analyzing their online presence, and even examining customer reviews.
Analysis (Understanding):
Once the information is collected, the next step is to analyze it to understand the competitive
environment. This involves identifying patterns, trends, and potential opportunities or
threats. Tools like SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) can be
used to facilitate this stage.
Action (Defense or Offense):
The final stage involves taking action based on the analysis. This could involve developing
strategies to defend against competitors' moves or launching offensive initiatives to gain a
competitive advantage. Examples include adjusting pricing strategies, launching new products,
or improving marketing campaigns.

Competitive analysis is an ongoing process. Regular monitoring of competitor activities is

essential to stay ahead in the market. By systematically gathering information, conducting
thorough analysis, and taking strategic action, businesses can improve their competitive
positioning and make informed decisions.
Understanding the Diagram: Competitive Information Sources

This flowchart illustrates the information-gathering stage of competitive analysis, which is

a key part of strategic planning in any business. It helps companies understand their rivals, the
market, and trends before making decisions.

Step 1: Information Gathering

At the center, we have "Competitive Information Sources" — this is the pool from which
businesses gather intelligence about competitors. These sources are categorized into six main
types:

1. Company Websites

• What they offer: Direct insights into a company’s products, leadership, press
releases, job postings, and more.
• Why it matters: It's the most official and updated source of a company's messaging
and strategy.
• Example: If Apple announces a new product on its website, competitors like Samsung
can prepare counter-campaigns or adjust timelines.

2. Financial Analysts
 • What they offer: Deep dives into company performance, revenue models, stock
behavior, etc.
• Who uses this: Especially useful for private equity firms, investors, and competitors
evaluating a firm’s financial health.
• Example: A financial analyst’s report on Amazon might highlight strengths in cloud
computing that a rival like Microsoft Azure would study.

3. Industry Analysts

• What they offer: Reports that cover entire markets—industry trends, market share,
forecasts, and competitive positioning.
• Example: Gartner’s Magic Quadrant evaluates tech companies’ relative strengths,
which competitors use to benchmark themselves.

4. Trade Publications

• What they offer: News from industry-specific journals that track trends,
breakthroughs, and business moves.
• Example: A new fashion trend reported in Vogue Business may signal upcoming
consumer demand.

5. Web Traffic Tools

• What they offer: Data on how many people visit a competitor’s site, how long they
stay, and which pages they view.
• Tools include: Alexa, Compete, Google Analytics, etc.
• Example: If Shopify sees BigCommerce gaining web traffic, it might study their
marketing funnel or pricing pages.

6. Social Media

• What they offer: Real-time sentiment from users via hashtags, keywords, mentions,
and influencer engagement.
• Example: If people are praising Tesla's new feature on Twitter, other automakers take
note and may accelerate similar innovations.

Step 2: From Information → Analysis → Action

Once you've collected information, the process continues:

1. Analysis – Interpret patterns, trends, strengths, and weaknesses.

2. Action – Take defensive or offensive steps based on what you've learned.

Example Flow:
 • Data shows Nike is trending on social media → Analyzed to show customer love for a
new shoe line → Adidas responds by launching a competing product with influencer
support.

Web Traffic Analysis

In today's online world, information on web traffic to competitors' sites can prove useful to
assess web popularity and strategy. Marketers can access web traffic analysis tools which offer
information applicable to competitor site analytics and search analytics. Site analytics
Information includes various data points, such as traffic volume, about selected sites. Search
analytics Information shows which keywords users are entering to send traffic to websites.
In this section, we cover several online competitive analysis tools to assist with web traffic
analysis and other website-related competitive information gathering. We will demonstrate the
use of the online tools through a running example.
In the example, we represent wrinkle cream manufacturer Dermagist ([Link]). We
will engage in online competitive analysis to determine how our website characteristics
compare with those of our competitors, Life Cell Skin ([Link]) and Athena 7 Minute
Lift ([Link]).

Competitive Analysis Tools : Alexa

We start with online competitive analysis tool Alexa ([Link]). As shown in Figure 4.4, to
use the tool, we go to [Link] and enter our search term. We can research our own website
button [Link] changes over time, so exact details might vary from those discussed here.
characteristics by entering "[Link]" in the search box, and then clicking the "search"

[Link] Website Details

dermagist Search Audience

Search Analysis

Figure 4.4: Online Competitive Analysis Tools: Alexa

Alexa returns several different types of information, some examples of which are shown in the
figure. We start by clicking on the "Details" button to find website details. Some details include
our Alexa Traffic Rank (how we compare with other websites), and the number of sites linking
in. By selecting the "Audience" tab on Alexa, we can see age, education, gender, and other
demographic data on site visitors.
By selecting the "Search Analytics" tab, we can see graphs of the [Link] website traffic
over time. The tool also shows keyword popularity for different search terms. We can repeat
the procedure to obtain similar information for our competitors, [Link] and
[Link]. We then compare the results to determine how we fare.
The advantages of Alexa are its cost (it is free), its ease of use, and the relevance of its data to
assess traffic volume trends. The disadvantage or Alexa is that it obtains its data from people
who have installed the Alexa toolbar. Therefore, the data represent Internet data analysts
(who often have the toolbar installed) more accurately than standard consumers. Remember
this fact wisen interpreting the data.

[Link] Unique Visitors

dermagist lifecellskin Monthly

7minutelist
Metrics

PRO Account
Data
Figure 4.5: Online Competitive Analysis Tools: Compete
Compete gets its traffic estimates from a panel of over 2 million U.S. Internet users. Users
opting to pay extra for the PRO account get additional data, such as audience profiles and the
number of pages viewed per visit. 4-11
The advantages of Compete are that it provides much of the functionality without an upgrade
to the PRO account, that it is easy to use, and that it allows users to quickly compare important
information among several sites simultaneously. The disadvantage of Compete is that it reflects
the United States more than other countries because the data comes from a U.S.-based panel.

Competitive Analysis Tools: Google Alerts

Google offers two helpful tools to assess the competitive landscape, as well as overall trends,
over time. The first tool is Google Alerts, shown in Figure 4.6. To use Google Alerts, we enter
the topic of interest and the type of data desired (news, blogs, video, discussions, product
reviews, etc.). We select how often we wish to receive alerts, provide our email address, and
click on the "Create Alert" button. Google will deliver alerts relevant to the topic entered.
Google Alerts

dermagist Create Alert #1 Alert #2 Alert #3

Alert

Figure 4.6: Online Competitive Analysis Tools: Google Alerts

In our case, we enter "dermagist" into Google Alerts, and the tool will alert us with regular
messages whenever the term "dermagist" comes up. We can also request to get alerts for the
terms "Life Cell Skin" and "7 Minute Lift" occur. We advise users to select the type and
frequency of alerts carefully to avoid receiving a deluge of information.
Competitive Analysis Tools: Google Trends
Google also offers Google Trends ([Link]/trends), shown in Figure 4.7. To use the tool,
we enter the category represented by the company and its competitors. In our case, we enter
the category term "wrinkle cream" After clicking the "Explore" button, Google Trends returns
three types of information

Competitive Analysis Tools: Google Trends

Google also offers Google Trends ([Link]/trends), shown in Figure 4.7. To use the tool,
we enter the category represented by the company and its competitors. In our case, we enter
the category term "wrinkle cream" After clicking the "Explore" button, Google Trends returns
three types of information.
Event Timeline List of Event
Google Trends
A B C A Event 1
B Event 2
wrinkle cream Explore C Event 3

Primary Regions & Languages

Figure 4.7: Online Competitive Analysis Tools: Google Trends

The first type of information is an event timeline. The event timeline shows the search
frequency of the entered term (in this case, "wrinkle cream"). The event timeline indicates
times of intense searching, such as shortly after a product introduction from a competitor.
The second type of information is a list of events. Each event in the list is indexed with
alphabetical letters and includes a headline, a link to further information, and a corresponding
letter on the event timeline, as shown in the figure.
Competitive information sources in an increasingly competitive marketplace, organizations
must continuously gather and analyze information about their rivals. Competitive information
sources refer to the various channels through which businesses obtain data about competitors'
strategies, strengths, weaknesses, and market positioning.

Some competitive information sources are

1. Company Website: Company websites are one of the most important secondary sources of
competitive information. They provide official, public-facing data directly from a company,
making them a reliable and accessible tool for analyzing competitors.
2. Financial Analyst: A financial analyst plays a key role in gathering, analyzing, and
interpreting financial data from various sources to understand a company’s competitive
position. Their insights help organizations make informed strategic and investment decisions.
3. Industry Analyst: An industry analyst specializes in understanding the broader market
environment in which companies operate. Their work involves gathering, synthesizing, and
interpreting a wide range of data from various competitive information sources. This analysis
helps businesses, investors, and policymakers understand market dynamics, identify trends,
and benchmark performance against industry standards.
4. Trade Publication: Trade publications are industry-specific magazines, journals, or online
platforms that provide news, trends, and expert insights related to a particular sector. They are
considered a secondary source of competitive information and are widely used by businesses,
analysts, and marketers to track competitor activities and market developments.
5. Web Traffic Analysis: Web traffic analysis involves studying the data related to visitors on
websites, such as the number of visitors, their behavior, sources of traffic, and engagement
metrics. It is a valuable digital competitive intelligence tool used to understand competitor
online performance and customer interactions.
6. Social Media Analysis: Social media analysis involves monitoring and evaluating
competitors’ activities, audience engagement, and public sentiment across social platforms like
Facebook, Twitter, Instagram, LinkedIn, and TikTok. It is a powerful tool for gaining real-time
competitive intelligence.

Type of competitor
Direct Competitors:
Offering similar products and service. They are same market
Indirect Competitors:
Offering different products and serve same market or different market Fulfills same function
(or perceived)
Principal Competitors:
Principal competitors are the main rival companies in the same industry or market that offer
similar products or services and compete for the same customer base. These competitors pose
the greatest threat to a company’s market share, profitability, and growth.
Identification of Principal Competitors
1. Time Horizon: Considering the time at which the competitor will pose a substantial threat
Example: Electric Lawn Mowers: No principal competitor beach range and power problem:
not likely to be solved in a year.
2. Product/Service Life Cycle: Considering stage of life cycle of competitor's product or service
Example: Lawnbotts: Robot lawn mower not a principal competitor because product is still in
infancy
3. Rate of Technological: The rate of technological change refers to how quickly a company's
competitors adopt and implement new technologies to improve their products, services, or
operations. In competitive analysis, understanding the rate of technological change among
principal competitors is crucial because it directly affects innovation, market leadership, and
customer satisfaction. Example: Toro: Basic lawn mower.
Competitive Analysis Model analysis

What is it?

A Competitive Analysis Model analysis is a way to understand:

• Who your competitors are

• What they’re good or bad at
• How the market and environment affect everyone
• How your company can win

Key Models Explained:

1. Porter’s Five Forces

Looks at the overall industry to see how hard it is to make money.
Example: Are there too many competitors? Can customers or suppliers control you?
2. SWOT Analysis
Looks at a competitor’s strengths and weaknesses and compares them to your own.
Example: Is their product better? Are they weak in customer service?
3. PESTEL Analysis
Looks at big external factors like the economy, laws, or technology that affect all
companies.
Example: Is a new law helping one competitor more than others?
4. Competitor Profile Matrix
Scores each competitor on key success areas like price, quality, or reputation.
Example: Rate yourself and your rivals to see who leads.
5. Strategic Group Map
Visualizes where competitors sit in the market.
Example: Are many companies selling cheap products, but few offering premium
ones?

Why do it?

• To spot opportunities and threats

• To understand your position in the market
• To build a better strategy than your competitors

PESTEL Competitive Analysis Model

The PESTEL Analysis (also known as PESTLE) is a strategic tool used to analyze the
macro-environmental factors that can affect a business and its competitive landscape. While
it's not focused on competitors directly like SWOT or Porter's Five Forces, PESTEL helps
identify external factors that influence all competitors in an industry—shaping threats and
opportunities.

Purpose:

To understand how external macro-environmental factors impact industry competition,

strategic choices, and future trends.

PESTEL Elements:

Factor Description Competitive Implications

Political Government policies, trade Can influence market entry barriers, supply chain
regulations, tax laws, political risks, or favorable conditions for local vs. foreign
stability players

Economic Interest rates, inflation, economic Affects customer spending, pricing strategies, and
growth, exchange rates operational costs

Social Demographics, lifestyle changes, Impacts consumer behavior, talent availability, and
cultural trends, education market demand

Technological Innovation, R&D activity, Creates disruption or advantage; tech-savvy

automation, tech adoption competitors can outpace others

Environmental Sustainability, climate change, Pressures to go green can favor eco-conscious brands
environmental regulations

Legal Labor laws, antitrust, IP protection, Legal frameworks may restrict or empower
safety standards competitors differently

How to Use PESTEL in Competitive Analysis

1. Research each PESTEL dimension for your industry and region.

2. Identify trends that affect the entire market or select competitors.
3. Map which competitors are better or worse positioned to adapt or benefit.
4. Anticipate strategic moves based on external pressures or opportunities.

Example – Electric Vehicle (EV) Industry

Factor Insight Competitive Effect

Political EV subsidies in Europe Favors early adopters like Tesla
Economic High lithium costs Challenges all players; favors those with secured
supply chains
 Social Eco-conscious consumers Boosts demand; legacy carmakers pivoting to EVs
rising
Technological Battery innovation Tesla, BYD gain edge through R&D
Environmental Emissions regulations Penalizes laggards; helps compliant firms
Legal Data privacy laws (in Big tech players face stricter compliance needs
connected cars)

When to Use:

• For market entry analysis

• During strategic planning
• To anticipate competitor adaptation
• Alongside SWOT or Porter's Five Forces

Would you like a template for a PESTEL analysis or help applying it to a specific industry?

The PESTEL Analysis (also known as PESTLE) is a strategic tool used to analyze the
macro-environmental factors that can affect a business and its competitive landscape. While
it's not focused on competitors directly like SWOT or Porter's Five Forces, PESTEL helps
identify external factors that influence all competitors in an industry—shaping threats and
opportunities.

PESTEL Competitive Analysis Model

Purpose:

To understand how external macro-environmental factors impact industry competition,

strategic choices, and future trends.

PESTEL Elements:

Factor Description Competitive Implications

Political Government policies, trade Can influence market entry barriers, supply
regulations, tax laws, political chain risks, or favorable conditions for local
stability vs. foreign players
Economic Interest rates, inflation, Affects customer spending, pricing strategies,
economic growth, exchange and operational costs
rates
Social Demographics, lifestyle changes, Impacts consumer behavior, talent
cultural trends, education availability, and market demand
Technological Innovation, R&D activity, Creates disruption or advantage; tech-savvy
automation, tech adoption competitors can outpace others
Environmental Sustainability, climate change, Pressures to go green can favor eco-conscious
environmental regulations brands
 Legal Labor laws, antitrust, IP Legal frameworks may restrict or empower
protection, safety standards competitors differently

How to Use PESTEL in Competitive Analysis

1. Research each PESTEL dimension for your industry and region.

2. Identify trends that affect the entire market or select competitors.
3. Map which competitors are better or worse positioned to adapt or benefit.
4. Anticipate strategic moves based on external pressures or opportunities.

Example – Electric Vehicle (EV) Industry

Factor Insight Competitive Effect

Political EV subsidies in Europe Favors early adopters like Tesla
Economic High lithium costs Challenges all players; favors those with secured
supply chains
Social Eco-conscious consumers Boosts demand; legacy carmakers pivoting to EVs
rising
Technological Battery innovation Tesla, BYD gain edge through R&D
Environmental Emissions regulations Penalizes laggards; helps compliant firms
Legal Data privacy laws (in Big tech players face stricter compliance needs
connected cars)

When to Use:

• For market entry analysis

• During strategic planning
• To anticipate competitor adaptation
• Alongside SWOT or Porter's Five Forces

Porter’s Five Forces Model

Purpose:

To analyze the competitive intensity and profitability potential of an industry by examining

five key external forces that shape every market.

The Five Forces

1. Competitive Rivalry (Industry Competitors)

o What it measures: The intensity of competition among existing firms.
o Key factors:
 ▪ Number of competitors
▪ Market growth rate
▪ Product/service differentiation
▪ Switching costs
o High rivalry means: Lower profitability due to price wars, higher marketing
costs, and customer churn.
2. Threat of New Entrants
o What it measures: How easy it is for new competitors to enter the market.
o Key factors:
▪ Barriers to entry (e.g., patents, brand loyalty, economies of scale)
▪ Regulatory compliance
▪ Capital requirements
o High threat means: Established companies may face lower market share and
increased pressure on pricing.
3. Threat of Substitutes
o What it measures: Likelihood that customers will switch to different
products/services.
o Key factors:
▪ Availability of alternatives
▪ Price-performance of substitutes
▪ Buyer’s propensity to switch
o High threat means: Reduced customer loyalty and pricing power.
4. Bargaining Power of Buyers
o What it measures: The power customers have to drive prices down or demand
more value.
o Key factors:
▪ Number of buyers vs. sellers
▪ Availability of alternatives
▪ Purchase volume
o High buyer power means: Pressure on price and profitability, especially in
commoditized markets.
5. Bargaining Power of Suppliers
o What it measures: The control suppliers have over pricing, quality, and
availability of inputs.
o Key factors:
▪ Number of suppliers
▪ Switching costs for firms
▪ Supplier concentration
o High supplier power means: Higher input costs and lower margins for
industry players.

Example: Airline Industry

Force Competitive Impact

Competitive Rivalry Very high – many airlines, little differentiation
Threat of New Entrants Moderate – high capital needed, but some low-cost players enter
Threat of Substitutes Moderate – trains, cars, virtual meetings
Buyer Power High – price-sensitive travelers, many choices
Supplier Power High – limited aircraft and fuel suppliers
Result: Low profitability industry due to strong competitive forces.

When to Use Porter’s Five Forces:

• Before entering a new market

• During strategic planning or industry analysis
• To identify where to build a competitive moat

Competitive Analysis Model: Perceptual Map

A perceptual map is a visual representation of different company positions within a market
within a graph. It’s a quick way to see how companies compare and is commonly used by
marketing teams.
Perceptual Maps as a framework has several advantages:
▪ It’s simple to understand and use.
▪ They are easy & quick to develop.
▪ You can do it on your own, as a team in person, or as a group remotely.
▪ It provides a clear look at your position in the market vs your competitors.

As with every tool, Perceptual Maps has some limitations :

✓ The power of a Perceptual Map depends on selecting the right axis labels.
✓ There is a low amount of detail, it’s a quick snapshot view.
✓ The framework only really supports 2 measurements per company.
✓ Positioning can be subjective.

A perceptual map is an easy way to see how you stand against your competitors. It’s also a
useful tool for setting goals and achieving results.

Some prework should be done before a Perceptual Map session.

There are a number of points you’ll need to know before you define your Perceptual Map:
✓ Who are your competitors?
✓ What are the key factors for your clients?
✓ What is the perception of your business in your clientbase?
✓ If in a group, these can be shared via an email beforehand or presented on the day.

Perceptual Maps rely much more on competitor research than brainstorming, so often are
created by an individual and then presented back to the company. If done in a group it’s best
to include members of your Sales & Marketing teams, who will be likely to provide insight
into each position.
Let's construct a Competitive Analysis Model: Perceptual Map.
It visually compares competing brands based on two key dimensions: Power (Low to High)
and Feature Richness (Basic Features to Feature-Rich).
Key Points from the Perceptual Map:
Cuisinart stands alone in the Feature-Rich/Low Power quadrant, indicating it is perceived by
consumers as having many features but not necessarily high power.
Brands like Oster, Waring, Hamilton Beach, Kitchen Aid, and Black & Decker are clustered
around the High Power/Basic Features area, meaning they offer good power but fewer features.
Sunbeam is positioned in the Low Power/Basic Features quadrant, indicating weaker
performance in both dimensions.
The High Power/Feature-Rich quadrant is notably empty, possibly indicating a market
opportunity.
Interpretation Notes :
Large distance between Cuisinart and other brands suggests that consumers perceive Cuisinart
differently.
There are clusters of brands, showing similarities in consumer perception.
Some quadrants are empty, pointing to potential gaps in the market.

This map helps marketers and strategists identify how their brand is perceived relative to
competitors and spot opportunities for differentiation or repositioning.

Competitive Analysis Model: SWOT

The Competitive Analysis Model: SWOT is a strategic planning tool used to evaluate a
company's competitive position by identifying its internal Strengths and Weaknesses, as well
as external Opportunities and Threats. It helps organizations understand their current situation,
make informed decisions, and develop strategies for growth and risk management.
1. Strengths (Internal, Positive):
These are attributes that give the company an advantage over competitors. Examples include:
➢ Strong brand reputation
➢ Skilled leadership
➢ Efficient operations
➢ Robust financial health
➢ Global distribution networks
2. Weaknesses (Internal, Negative):
These are internal factors that place the company at a disadvantage. Examples include:
• High debt levels
• Poor customer reviews
• Limited marketing presence
 • Inconsistent product quality
3. Opportunities (External, Positive):
External conditions that the company can capitalize on to grow or gain a competitive edge.
Examples include:
▪ New market trends
▪ Technological advancements
▪ Strategic partnerships
▪ Market expansion opportunities

4. Threats (External, Negative):

External factors that could harm the company’s performance. Examples include:
▪ Emerging competitors
▪ Regulatory changes
▪ Economic downturns
▪ Rising operational costs

Purpose of SWOT in Competitive Analysis:

▪ To gain a clear picture of market positioning
▪ To identify strategic actions (e.g., capitalize on strengths, improve weaknesses)
▪ To prepare for external risks
▪ To support decision-making and resource allocation

Let's move into an Example.

Here is a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) for Jarden, the
maker of brands like Oster and Sunbeam.
Strengths and Weaknesses (Internal Factors):
1. Leadership: Jarden benefits from having a seasoned CEO, which is a strength.
2. Finance: The company shows robust growth, but it carries high debt, indicating a
mixed financial situation.
3. Strategy: A key strength lies in their skill in achieving growth through mergers and
acquisitions.
4. Market Segments: Jarden demonstrates good alignment with its market segments.
5. Positioning: The company has a strong understanding of its positioning in the market.
6. Operations: Growth in manufacturing is a notable strength.
7. Product: Product reviews are mixed, representing a moderate concern.
8. Price: There is some price premium, which could be a weakness depending on
consumer perception.
9. Place (Distribution): Worldwide distribution is a significant strength.
10. Promotion: The lack of a social media presence is considered a weakness.
11. Support: Responsive customer support is a strength.
Opportunities and Threats (External Factors):
Opportunities:
➢ Short-Term:
➢ Launching social media campaigns.
➢ Cross-promoting with spirits (possibly leveraging partnerships with beverage brands).
➢ Long-Term:
➢ Diversifying into related product areas.
➢ Expanding regional operations.

Threats:
➢ Short-Term:
➢ Emergence of new competitors.
➢ Changes in legislation that could impact operations or product compliance.
➢ Long-Term:
➢ A prolonged economic recession.
➢ Rising fuel costs impacting logistics and pricing.

This SWOT analysis highlights Jarden’s solid foundation in leadership, operations, and
distribution, while also pointing out areas for improvement like social media engagement and
financial structure. It identifies potential avenues for growth and warns of market and economic
challenges.

SWOT – Core Competency

This refers to identifying a company's key strengths (core competencies) in different functional
areas, which are essential for gaining a competitive advantage.
• Organizational Chart Structure:
• CEO at the top, overseeing all major departments:
• Development
• Finance
• Human Resources
• Information Technology
• Marketing
• Operations
• Sales
• Service

Purpose in SWOT Analysis:

Each of these departments contributes to internal strengths or weaknesses in a SWOT analysis.
For example:
Development may highlight innovation as a strength.
Finance may reflect robust growth or high debt.
Marketing might be strong in branding or weak in digital reach.
IT might offer advanced systems or face integration issues.
Understanding how each unit contributes helps identify core competencies—unique strengths
that are difficult for competitors to replicate.
Let's Dive into different organizational functions, their descriptions, and examples from well-
known companies.
Development: Innovating new products and services.
Example: Zynga engages demanding online audience by creating new software version every
day.
Finance: Manages financial assets toward security and growth of the organization.
Example: Google leverages its considerable company assets to grow the company.
Human Resources: Recruiting and developing top talent.
Example: General Electric grooms impressive management talent.
Information Technology: Applying technology to business problems.
Example: Allstate Financial leverages IT for risk management of life insurance
Marketing: Satisfying customer needs.
Example: Apple meets and exceeds customer needs.
Operations: Converts labor and materials into goods and services.
Example: McDonald's develops and enforces operations guidelines to ensure consistent taste.
Sales: Aids the buyer in finding the correct product or service to purchase.
Example: Grainger provides consulting to business users on the application of its 900,000
products.
Service: Adding value to the purchase experience before, during, and after the sale.
Example: Nordstrom delivers on its reputation for helpful and friendly customer service.

Competitive Analysis Model: Perceptual Map

A perceptual map is a visual representation of different company positions within a market
within a graph. It’s a quick way to see how companies compare and is commonly used by
marketing teams.
Perceptual Maps as a framework has several advantages:
• It’s simple to understand and use.
• They are easy & quick to develop.
• You can do it on your own, as a team in person, or as a group remotely.
• It provides a clear look at your position in the market vs your competitors.
As with every tool, Perceptual Maps has some limitations :
• The power of a Perceptual Map depends on selecting the right axis labels.
• There is a low amount of detail, it’s a quick snapshot view.
• The framework only really supports 2 measurements per company.
• Positioning can be subjective.

A perceptual map is an easy way to see how you stand against your competitors. It’s also a
useful tool for setting goals and achieving results.

Some prework should be done before a Perceptual Map session.

There are a number of points you’ll need to know before you define your Perceptual Map:
1. Who are your competitors?
2. What are the key factors for your clients?
3. What is the perception of your business in your clientbase?
If in a group, these can be shared via an email beforehand or presented on the day.
Perceptual Maps rely much more on competitor research than brainstorming, so often are
created by an individual and then presented back to the company. If done in a group it’s best
to include members of your Sales & Marketing teams, who will be likely to provide insight
into each position.

Let's constract a Competitive Analysis Model: Perceptual Map. It visually compares competing
brands based on two key dimensions: Power (Low to High) and Feature Richness (Basic
Features to Feature-Rich).
Key Points from the Perceptual Map:
Cuisinart stands alone in the Feature-Rich/Low Power quadrant, indicating it is perceived by
consumers as having many features but not necessarily high power.
Brands like Oster, Waring, Hamilton Beach, Kitchen Aid, and Black & Decker are clustered
around the High Power/Basic Features area, meaning they offer good power but fewer features.
Sunbeam is positioned in the Low Power/Basic Features quadrant, indicating weaker
performance in both dimensions.
The High Power/Feature-Rich quadrant is notably empty, possibly indicating a market
opportunity.
Interpretation Notes :
Large distance between Cuisinart and other brands suggests that consumers perceive Cuisinart
differently.
There are clusters of brands, showing similarities in consumer perception.
Some quadrants are empty, pointing to potential gaps in the market.
This map helps marketers and strategists identify how their brand is perceived relative to
competitors and spot opportunities for differentiation or repositioning.

Competitive Analysis Model: SWOT

The Competitive Analysis Model: SWOT is a strategic planning tool used to evaluate a
company's competitive position by identifying its internal Strengths and Weaknesses, as well
as external Opportunities and Threats. It helps organizations understand their current situation,
make informed decisions, and develop strategies for growth and risk management.
1. Strengths (Internal, Positive):
These are attributes that give the company an advantage over competitors. Examples include:
▪ Strong brand reputation
▪ Skilled leadership
▪ Efficient operations
▪ Robust financial health
▪ Global distribution networks
2. Weaknesses (Internal, Negative):
These are internal factors that place the company at a disadvantage. Examples include:
▪ High debt levels
▪ Poor customer reviews
▪ Limited marketing presence
▪ Inconsistent product quality
3. Opportunities (External, Positive):
External conditions that the company can capitalize on to grow or gain a competitive edge.
Examples include:
▪ New market trends
▪ Technological advancements
▪ Strategic partnerships
▪ Market expansion opportunities

4. Threats (External, Negative):

External factors that could harm the company’s performance. Examples include:
▪ Emerging competitors
▪ Regulatory changes
▪ Economic downturns
▪ Rising operational costs

Purpose of SWOT in Competitive Analysis:

To gain a clear picture of market positioning
 To identify strategic actions (e.g., capitalize on strengths, improve weaknesses)
To prepare for external risks
To support decision-making and resource allocation

Let's move into an Example.

Here is a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) for Jarden, the
maker of brands like Oster and Sunbeam.
Strengths and Weaknesses (Internal Factors):
Leadership: Jarden benefits from having a seasoned CEO, which is a strength.
Finance: The company shows robust growth, but it carries high debt, indicating a mixed
financial situation.
Strategy: A key strength lies in their skill in achieving growth through mergers and
acquisitions.
Market Segments: Jarden demonstrates good alignment with its market segments.
Positioning: The company has a strong understanding of its positioning in the market.
Operations: Growth in manufacturing is a notable strength.
Product: Product reviews are mixed, representing a moderate concern.
Price: There is some price premium, which could be a weakness depending on consumer
perception.
Place (Distribution): Worldwide distribution is a significant strength.
Promotion: The lack of a social media presence is considered a weakness.
Support: Responsive customer support is a strength.

Opportunities and Threats (External Factors):

Opportunities:
Short-Term:
▪ Launching social media campaigns.
▪ Cross-promoting with spirits (possibly leveraging partnerships with beverage brands).
▪ Long-Term:
▪ Diversifying into related product areas.
▪ Expanding regional operations.

Threats:
Short-Term:
▪ Emergence of new competitors.
▪ Changes in legislation that could impact operations or product compliance.
Long-Term:
 ▪ A prolonged economic recession.
▪ Rising fuel costs impacting logistics and pricing.

This SWOT analysis highlights Jarden’s solid foundation in leadership, operations, and
distribution, while also pointing out areas for improvement like social media engagement and
financial structure. It identifies potential avenues for growth and warns of market and economic
challenges.

SWOT – Core Competency

This refers to identifying a company's key strengths (core competencies) in different functional
areas, which are essential for gaining a competitive advantage.
Organizational Chart Structure:
CEO at the top, overseeing all major departments:
• Development
• Finance
• Human Resources
• Information Technology
• Marketing
• Operations
• Sales
• Service

Purpose in SWOT Analysis:

Each of these departments contributes to internal strengths or weaknesses in a SWOT analysis.
For example:
Development may highlight innovation as a strength.
Finance may reflect robust growth or high debt.
Marketing might be strong in branding or weak in digital reach.
IT might offer advanced systems or face integration issues.
Understanding how each unit contributes helps identify core competencies—unique strengths
that are difficult for competitors to replicate.
Let's Dive into different organizational functions, their descriptions, and examples from well-
known companies.
Development: Innovating new products and services.
Example: Zynga engages demanding online audience by creating new software version every
day.
Finance: Manages financial assets toward security and growth of the organization.
Example: Google leverages its considerable company assets to grow the company.
Human Resources: Recruiting and developing top talent.
Example: General Electric grooms impressive management talent.
Information Technology: Applying technology to business problems.
Example: Allstate Financial leverages IT for risk management of life insurance
Marketing: Satisfying customer needs.
Example: Apple meets and exceeds customer needs.
Operations: Converts labor and materials into goods and services.
Example: McDonald's develops and enforces operations guidelines to ensure consistent taste.
Sales: Aids the buyer in finding the correct product or service to purchase.
Example: Grainger provides consulting to business users on the application of its 900,000
products.
Service: Adding value to the purchase experience before, during, and after the sale.
Example: Nordstrom delivers on its reputation for helpful and friendly customer service.

Definition:
Competitive defensive actions refer to strategic moves that companies employ to protect their
market position, prevent competitors from gaining advantage, and maintain business
sustainability. These actions are based on assessing competitors' strengths and weaknesses to
counteract their attacks effectively.
Explanation:
There are five categories of defensive competitive strategies. And they are given below:
1. Bypass Attack – A strategy where a company avoids direct competition by
expanding into new areas, markets, or industries. This approach requires strong
development, finance, marketing, and sales capabilities.
2. Encirclement Attack – Involves using overwhelming force, resources, or a wide
range of products/services to outperform competitors. Companies leveraging this
strategy rely on finance and operations for successful execution.
3. Flank Attack – Aimed at exploiting weaknesses in a competitor’s market position or
strategy, typically targeting areas they overlook. This approach is strengthened by
development and marketing competencies.
4. Frontal Attack – A direct and aggressive strategy where a company challenges its
competitors head-on in areas where they are strongest. This type of attack depends on
finance and sales expertise.
5. Guerrilla Attack – Involves unpredictable, unconventional, and small-scale attacks
against competitors, often leveraging rapid marketing tactics or niche customer
engagement. HR competencies are essential for this strategy as it requires
adaptability and quick responses.
Real-world examples of competitive defensive strategies:
 1. Bypass Attack – Tesla vs. Traditional Automakers
Tesla bypassed direct competition with established car manufacturers by focusing on
electric vehicles (EVs) instead of traditional gasoline-powered cars. This allowed
Tesla to carve out a new market segment before competitors could catch up.
2. Encirclement Attack – Samsung vs. Apple
Samsung competes with Apple by offering a wide range of smartphones at different
price points, ensuring that it captures both premium and budget-conscious customers.
This strategy overwhelms Apple’s limited product lineup.
3. Flank Attack – Netflix vs. Cable TV
Netflix targeted on-demand streaming when cable TV was still focused on
scheduled programming. By exploiting this gap, Netflix became a dominant force in
entertainment, forcing traditional TV providers to adapt.

4. Frontal Attack – Coca-Cola vs. Pepsi

Coca-Cola and Pepsi engage in direct competition by constantly launching new
products, aggressive marketing campaigns, and price wars. Both brands fight for
dominance in the soft drink industry.
5. Guerrilla Attack – Small Coffee Shops vs. Starbucks
Independent coffee shops use local engagement, personalized service, and unique
offerings to compete against Starbucks. They often rely on social media marketing
and community events to attract loyal customers.

Competitive Actions: Offensive Actions

"Offensive actions" in competitive strategy refer to moves a company makes to gain a
competitive advantage by directly attacking a rival's strengths, exploiting their weaknesses, or
capturing new market share. The table in the image highlights several common "Go To Market
Approaches" that companies use as part of their offensive strategies.

Go To Market Approaches:
There are 6 approaches in Competitive Action: Offensive Action. Here’s an explanation of
each approaches:
1. Bundling
• Definition: Bundling is a marketing strategy that involves offering two or
more complementary products or services together as a single package for a
single price. The price for the bundle is typically lower than the sum of the
prices of the individual items if purchased separately, providing perceived
value to the customer.
• Example: "GM: Offers GM Protection Plan, which dealers can bundle with
new car sales."
2. Distribution Channels
• Definition: Distribution channels refer to the pathways or intermediaries
through which a product or service reaches its end consumer. Companies can
leverage multiple distribution channels to expand their reach, target different
customer segments, and increase sales.
• Example: "Nike: Sells its shoes in outlet malls, department stores, and
specialty stores."

3. Interval Ownership
• Definition: Interval ownership, often synonymous with fractional ownership or
timeshare, is a model where multiple parties share the ownership of a high-value
asset, typically real estate (like vacation properties) or luxury goods (like private
jets), with each owner having the right to use the asset for a specific period
(interval) each year.
• Example: "NetJets: Offers fractional ownership in business jets."

4. Leasing
• Definition: Leasing is a financial arrangement where a party (the lessee) gains the
right to use an asset owned by another party (the lessor) for a specific period in
exchange for regular payments. At the end of the lease term, the lessee typically
has options to return the asset, purchase it, or renew the lease.
• Example: "Ford Credit: Offers leasing plans on new Ford vehicles."

5. Prepaid Plans
• Definition: Prepaid plans involve customers paying for a service in advance
before they use it. This model is common in telecommunications, utilities, and gift
cards, and it can help companies secure revenue upfront and reduce billing
complexities.
• Example: "Virgin Mobile: Specializes in prepaid cell phone service plans."

6. Rental
• Definition: Rental involves granting temporary use of a product or service to a
customer for a fee, without transferring ownership. This model is common for
items that are used intermittently or are too expensive for most individuals to own
outright.
• Example: "Rent the Runway: Rents haute couture clothing for special occasions."
Market Opportunities Linked to Offensive Actions

There are three key strategies areas that enabled by these offensive actions:

Strategic Area Description Example Brands

Tap into previously Skoda Auto

New Market (economical car
unserved or underserved
Segment segment)
customer segments
Innovate how products
Go-To-Market reach the customer Lenovo PC (online +
Approaches (channel, pricing, retail channels)
promotion)
Provide unique product Westin Heavenly
Differentiating Bed (hotel bedding
benefits not offered by
Functionality innovation)
competitors

Class Discussion
Question 1: How is the Internet changing the competitive information gathering process?

The Internet has revolutionized the process of competitive information gathering by making
data more accessible, immediate, and analyzable. Traditionally, companies relied on industry
reports, trade shows, and informal networks to understand their competitors, which was often
time-consuming and expensive. Today, with just a few clicks, businesses can access a vast
range of publicly available information from competitor websites, press releases, financial
statements, and regulatory filings.

The real-time nature of the Internet also allows for instant monitoring of competitor activities
through tools like Google Alerts and social media platforms. Social media, in particular, offers
valuable insights into customer sentiment, marketing campaigns, and product feedback, giving
companies a window into both competitor performance and consumer preferences.

Furthermore, the development of advanced analytics and artificial intelligence has enabled
automated data collection and interpretation. Web scraping tools can continuously extract
information from competitor websites and e-commerce platforms, such as pricing, stock levels,
and product offerings. SEO and web traffic analysis tools like SEMrush and Ahrefs provide
detailed insights into competitors’ online strategies, including keywords, backlink profiles, and
user engagement metrics.

The rise of user-generated content has also contributed to richer competitive intelligence.
Customer reviews, forum discussions, and Q&A platforms like Quora provide firsthand
accounts of customer experiences and expectations, often highlighting strengths and
weaknesses of rival products or services.
Moreover, the Internet’s global reach allows companies to monitor not only local competitors
but also international players, helping them understand broader market dynamics and emerging
trends. However, this expanded access comes with the responsibility to respect ethical and legal
boundaries, ensuring that competitive intelligence practices do not cross into corporate
espionage or data breaches.

In essence, the Internet has made competitive intelligence more dynamic, data-driven, and
inclusive, giving businesses a significant edge in strategic planning and market positioning.

Question 2: What advantages would superior competitive analysis provide your existing
organization?

Superior competitive analysis offers several significant advantages to any organization,

enhancing its ability to compete, innovate, and grow effectively. If your organization excels
in gathering and interpreting competitive intelligence, it can benefit in the following ways:

1. Informed Strategic Planning

With a clearer understanding of competitors’ strengths, weaknesses, strategies, and market

positions, your organization can make more informed strategic decisions. This includes
identifying gaps in the market, opportunities for differentiation, and potential threats, allowing
for proactive rather than reactive planning.

2. Better Market Positioning

By understanding how competitors are positioning their products or services, your organization
can refine its value proposition to better meet customer needs and stand out in the market.
Superior analysis can reveal unmet customer expectations that your organization can target.

3. Enhanced Product Development

Insights into competitor offerings and customer feedback help in designing better products or
services. Your organization can innovate based on what’s missing in the current market or
improve existing offerings to provide greater value.

4. Improved Marketing Effectiveness

Knowing how competitors communicate with and attract customers enables your organization
to craft more compelling marketing messages. You can avoid crowded messaging spaces and
highlight unique selling points more effectively.

5. Agile Response to Market Changes

A deep understanding of the competitive landscape allows your organization to react quickly
to changes, such as new market entrants, pricing adjustments, or shifts in consumer behavior.
This agility is crucial in maintaining market share.

6. Risk Mitigation
Anticipating competitor moves or industry shifts reduces the risk of being blindsided by sudden
changes. This foresight helps in planning contingencies and strengthening areas of
vulnerability.

7. Resource Optimization

Superior competitive analysis helps allocate resources more efficiently. Whether it’s choosing
the right markets to enter, deciding where to cut costs, or identifying which products to
prioritize, data-driven insights lead to smarter investments.

8. Talent Retention and Attraction

Understanding how competitors structure their work environments, compensation, and

employee value propositions can inform HR strategies to attract and retain top talent.

In short, superior competitive analysis provides your organization with a strategic edge,
enabling smarter decisions, quicker adaptation, and sustained competitiveness in a dynamic
market environment.

Question 2: What are your favorite sources of competitive information?

My favorite sources of competitive information are those that provide reliable, timely, and
comprehensive insights into competitors, market trends, and customer behavior. Here are the
most valuable ones:
1. Competitor Websites
These are direct sources of information about a company’s products, services, pricing,
promotions, partnerships, and corporate news. They often reveal strategic priorities and
upcoming launches.
2. Social Media Platforms
Monitoring platforms like Facebook, LinkedIn, Twitter (X), and Instagram can provide insights
into customer engagement, marketing tactics, public perception, and campaign performance.
LinkedIn is particularly useful for understanding employee movement and organizational
changes.
3. Financial Reports and Filings
For public companies, annual reports, quarterly earnings, and SEC filings offer a wealth of data
on revenue, profitability, investments, risks, and strategic initiatives.
4. News Outlets and Press Releases
Business news websites (like Bloomberg, Reuters, and Business Insider) and press release
aggregators (like PR Newswire) are excellent for staying updated on competitor developments,
mergers, expansions, and other major activities.
5. Market Research Databases
Resources like Statista, IBISWorld, Gartner, and Nielsen provide industry-level data,
consumer behavior insights, and competitor benchmarking.
6. SEO and Web Analytics Tools
Platforms like SEMrush, Ahrefs, SimilarWeb, and Moz show competitors’ web traffic,
keyword strategies, backlink profiles, and content performance—vital for digital strategy
comparison.
7. Customer Reviews and Forums
Websites like Trustpilot, G2, Reddit, and Quora offer unfiltered feedback from customers.
These are great for identifying strengths and weaknesses in competitor products and customer
service.
8. Job Boards and Recruitment Sites
Sites like Indeed or Glassdoor can reveal what roles competitors are hiring for, indicating areas
of investment or strategic focus. Employee reviews can also shed light on company culture and
internal challenges.
9. Trade Shows, Webinars, and Industry Conferences
These events offer direct access to competitor representatives, product demos, and industry
insights. They are useful for networking and informal intelligence gathering.
10. Patent and Trademark Databases
Databases like Google Patents or the U.S. Patent and Trademark Office (USPTO) site provide
information on innovations and intellectual property that may indicate future product
development.
By regularly consulting a mix of these sources, you can build a rich, multidimensional view of
the competitive landscape and make more strategic decisions.

Question 3: Which companies are your organization's principal competitors?

To answer which companies are your organization’s principal competitors, I would need to
know the name of your organization and the industry or market it operates in. Competitors vary
widely depending on factors like:

• Industry sector (e.g., electronics, retail, software, healthcare)

• Geographic market (e.g., local, national, or global competitors)
• Target customers (e.g., B2B vs. B2C)
• Product or service offering (e.g., budget vs. premium)

For example:

• If your organization is Walton in Bangladesh, competitors could include Samsung,

LG, Singer, and Marcel, especially in consumer electronics and home appliances.
• If it’s a local retail company, competitors might be other businesses in the same region
with similar product lines.
 • If it’s a tech startup, competitors could include both domestic startups and global tech
firms offering similar solutions.

Could you tell me your organization’s name and what sector it operates in? That way, I can
provide a more specific and accurate list of competitors.

Question 4: What core competencies do your organization's principal competitors enjoy?

Core competencies are the unique strengths or capabilities that give a company a competitive
advantage in the market. These can include advanced technology, strong branding, supply
chain efficiency, or superior customer service. When looking at your organization's principal
competitors—assuming your organization is Walton, a leading electronics and appliance
manufacturer in Bangladesh—here’s how the core competencies of its main competitors
(e.g., Samsung, LG, Singer, Marcel) can be described:

Samsung

• Advanced Technology and Innovation: Samsung is known globally for its cutting-
edge research and development, especially in smartphones, smart TVs, and home
appliances.
• Strong Global Brand: Samsung’s global brand recognition builds customer trust and
allows it to command premium pricing.
• Integrated Supply Chain: It controls much of its own production, from
semiconductors to final products, which improves efficiency and quality control.

LG

• Product Design and Quality: LG products are known for their innovative features,
energy efficiency, and sleek design, especially in televisions and home appliances.
• Brand Loyalty: LG has built a strong reputation for reliability and user-friendly
technology.
• Global Reach and Marketing: With a strong presence in global markets, LG benefits
from vast distribution channels and consistent branding efforts.

Singer (Bangladesh)

• Widespread Retail Network: Singer has a dense network of retail outlets across
Bangladesh, making its products easily accessible to customers.
• Long-standing Local Trust: With a history dating back decades, Singer enjoys deep-
rooted brand trust, especially in rural and semi-urban areas.
• Flexible Payment Options: It offers installment plans and easy financing, making
appliances affordable for a large segment of the population.

Marcel
 • Local Manufacturing Efficiency: As a Bangladeshi brand like Walton, Marcel
benefits from low production costs and a strong understanding of local consumer needs.
• Price Competitiveness: Marcel offers affordable products that appeal to price-
sensitive consumers.
• Aggressive Marketing: The company is investing heavily in advertising and brand
positioning to rapidly grow its market share.

Each competitor has distinct core competencies:

• Samsung and LG dominate with technology, global branding, and innovation.

• Singer excels in accessibility, trust, and customer-centric financing.
• Marcel thrives through local production, affordability, and market responsiveness.

Understanding these core strengths allows Walton to identify areas where it must differentiate
itself—such as deeper innovation, stronger international branding, or further improving
product affordability and quality for local consumers.

Question 5: What type of competitive attacks (if any) has your organization endured?
How did it react?

Organizations in competitive industries often face various types of competitive attacks from
rivals trying to gain market share, attract customers, or disrupt the status quo. These attacks
may come in different forms, such as price undercutting, product innovation, aggressive
marketing, or new market entries.
Types of Competitive Attacks and Responses:
1. Price-Based Attacks
Example: A competitor introduces similar products at significantly lower prices to attract
price-sensitive customers.
Organizational Reaction:
The organization may respond by:
✓ Adjusting its pricing strategy to remain competitive.
✓ Emphasizing the value, quality, or durability of its products to justify the higher price.
✓ Offering promotions, discounts, or bundling to retain customers.

2. Product Innovation Attacks

Example: A rival launches new, technologically advanced or feature-rich products.
Organizational Reaction:
o Increasing investment in research and development.
o Updating existing products or launching new ones with improved features.
o Highlighting unique selling points and benefits in marketing campaigns.
3. Branding and Marketing Attacks
Example: A competitor uses aggressive advertising to target the organization's weaknesses or
dominate public attention.
Organizational Reaction:
1. Strengthening its own branding through campaigns that highlight its strengths and values.
2. Engaging customers through social media, public relations, and sponsorships.
3. Improving customer experience and service to maintain loyalty.

4. Entry of New Competitors

Example: A new player enters the market with a disruptive business model or innovative
approach.
Organizational Reaction:
▪ Monitoring the new entrant closely and analyzing their strengths.
▪ Exploring partnerships, acquisitions, or internal innovation to match or exceed the
disruption.
▪ Expanding to new markets or customer segments to reduce dependency on the
threatened area.

Organizations that endure competitive attacks and respond effectively tend to adapt by
innovating, improving customer experience, refining their brand message, and staying agile in
pricing and strategy. The ability to respond strategically not only protects market share but can
also strengthen long-term positioning.