Chapter 18, Problem 18.1DQ

Summary Introduction

To discuss: About the activities involved while conducting competitors analysis.

Competitors’ analysis is a strategic management plan of identifying, assessing the strengths weakness of current and potential competitors and selecting the key competitors. The following are steps involved while conducting competitor’s analysis.

Explanation of Solution

Activities involved in competitor’s analysis are as follows:

Identifying company’s competitors: The first step involved in competitive analysis is identification of competitors for the company. Every company must identify their competitors in the industry as well as which they operated.

Assessing competitors: The second step in competitor’s analysis is assessing competitors. In this step companies tries to assess the strengths and weakness of other competitors and their strategies related to competition and estimating their reactions.

Selecting competitors to attack or to avoid: Every company identifies their major competitors prior decisions based on positioning, marketing mix strategies and target customers. Company should decide that should compete with close competitors or with distant competitors like that good or bad.

Designing a competitive analysis system: This system analysis important competitive information and best sources of information.

This system collects the information from various sources and checks for validity, reliability, organize and interpret the results. Based on this information management should take decisions.