COMPETITIVE ANALYSIS AND
STRATEGY
BUSINESS PLANNING – CHAPTER 6
Content 01 COMPETITIVE ANALYSIS
STRATEGIC PLANNING
02 PROCESS & SWOT ANALYSIS
GENERIC COMPETITIVE
03
STRATEGIES
04 ALTERNATIVE
STRATEGIC
DIRECTIONS
Competitive
Analysis
Competitive Positioning
COMPETITIVE ANALYSIS
Intensity of Competition – Key
Factors
Numerous or equally
05
balanced competitors
Slow industry growth 04
“Commodity” product/ 03
service
High fixed costs 02
High exit barriers 01
Industry Attractiveness
Competitor Questions
Who are What are the What is there For their What
current attributes and size, location, products or problems
sellers in the characteristics target market, services, and concerns
marketplace? of these sellers and other identify price, to customers
and their important quality, features, have with
products/ characteristics? distribution, and these
services? other important sellers?
attributes.
.
Competitor Analysis
Competitor Analysis – Example 1
Competitor Analysis – Example 2
Competitor Analysis
Competitor ranking by key
success factors
David Aaker proposed a model to rank a business against its competitors based on key
success factors (ksf). He suggested that no more than ten ksfs should be used for
which adequate information is available
Competitors’ reaction to changes
Benchmarking
The analysis of
competitors also
provides
benchmarks against
which a business
plan can be
measured.
Many Business Plans Fail Because
of Poor Competitive Analysis
“Too many business plans want to show how unique their venture is and, as such, list no or
few competitors. However, this often has a negative connotation. If no or few companies
are in the market space, it implies that there may not be a large enough customer need to
support the venture’s products/and or services”
Partner, Consulting Firm
“One of the most common mistakes we see is that entrepreneurs fail to recognize future
competitors in addition to current competitors.”
Venture Capitalist
“ There is no such thing as no competition. If you have a good business idea, chances are
others are already working on the idea”
VP Corporate Development, Large Media Conglomerate
STRATEGIC
PLANNING
SWOT Analysis
q What do you do well? q What could you improve?
q What unique resources q Where do you have fewer
can you draw on? resources than others?
q What do others see as q What are others likely to see
S W
your strengths? as weaknesses?
q What opportunities are open to O T q What threats could harm you?
you? q What is your competition
q What trends could you take doing?
advantage of? q What threats do your
q How can you turn your weaknesses expose to you?
strengths into opportunities?.
SWOT Analysis Be realistic and
rigorous. Prune and
Find out what's prioritize your ideas,
working well, and to focus time and
what's not so money on the most
good. Ask yourself significant and
where you want to impactful actions and
go, how you might solutions.
get there – and
what might get in
your way. Collaborate with a team of
people from across the
Assess your business. This will help to
organization's uncover a more accurate and
position before you honest picture.
decide on any new
strategy.
It guides you to build on what
you do well, address what
you're lacking, seize new
openings, and minimize risks.
SWOT Analysis
Identifying Provides methods
resources and of control and
the means feedback
available to
achieve targets
Setting achievable
targets
Developing an
operational
plan
Developing
Strategies
SWOT Analysis
Stakeholder analysis
STRATEGIES
Strategy
Strategy
Strategy
Generic Competitive Strategy
Generic Competitive Strategy
Generic Competitive Strategy
Generic Competitive Strategy
Alternative strategic directions
Alternative strategic directions
Alternative strategic directions
Alternative strategic directions
Alternative strategic directions
Strategy
THANK YOU
Without a plan, even the most brilliant business can get lost. You need to have goals, create milestones and have a strategy
in place to set yourself up for success.
Yogi Berra