Competitive analysis techniques PDF

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The competitive analysis techniques include certain techniques like SWOT, Porter’s industry forces, ratio analysis and strategic group analysis. Additionally a few others include Porter’s four corner exercise, Treacy and Wiersema’s value disciplines and Gilad’s blind spot. ...

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Competitive analysis techniques The competitive analysis techniques include certain techniques like SWOT, Porter’s industry forces, ratio analysis and strategic group analysis. Additionally a few others include Porter’s four corner exercise, Treacy and Wiersema’s value disciplines and Gilad’s blind spot. The first technique is Porter’s four-corner exercise. It involves analysing a future goals, assumptions, current strategies and capabilities of the competitor. Knowing competitor’s goals helps you to predict how they are going to respond to the changes in the environment and their response towards the strategy. The competitor’s assumptions allow them to see the blind spots and their point of view regarding the environment. Analyzing the current strategy of the competitor allows them to judge whether they will continue with the strategy or not in the long run considering all the changing conditions. And lastly they should also look at the capabilities in terms of weaknesses and strength. These factors help to determine the response file of competitors and influence the timings, nature, and the intensity of the consumer and whether they need to change their strategic move or not. Furthermore, Treach and Wiersema’s value disciplines involve three dimensions. The first dimension is operational excellence. The company delivers quality, price, and ease of purchase which cannot be matched by anyone else in the industry. The second dimension is product leader. The company consistently provides the market with new product developments. And lastly customer intimacy is an important aspect. It involves the company’s good bond with the customer and leading it to customer loyalty. Gilad’s blind spot analysis tells us that there are perceptual biases due to the assumptions which results in the firm not being aware of the important developments, might perceive some

developments inaccurately, learns new developments slowly that timely response is not possible. Thus, industry must be analyzed without any regard given to the assumptions. Porter’s industry analysis is a competitive strategy which allows them to determine the level of intensity of competition in the industry. It can be used to develop four Porter’s corner analysis. It can be measured with the help of threat to new entrants, rivalry among existing firms, threat of substitutes, bargaining power of suppliers, bargaining power of buyers and relative power of other stakeholders. After conducting analysis for Porter's four corner analysis it can be used to generate strategic group analysis. The competitive analysis technique uses strategic group analysis which looks at the position of the competitors in the same industry. It helps them to understand where their competitors stand. SWOT can also be used to analyze. SWOT analysis involves analyzing your internal strengths, weaknesses and external opportunities, threats. This allows them to analyze their own firm deeply and see in depth the strongest points and improve the weaknesses. Also allows them to seek opportunities and stay away from the threats. These analysis techniques are used to create game simulations where people from the company are put into teams and role play is created where they create strategies against the competitors and then counter strategies are created by other groups....