1. identify competitors

Competitors are other enterprises in the same market or industry that provide the same or similar products or services, meet the same or similar consumer needs, and compete for the same or similar market resources. The purpose of identifying competitors is to narrow the scope of analysis, identify the most direct and important competitors, and avoid ignoring or paying too much attention to certain competitors. There are several ways to identify competitors:

market share-based approach. This method divides the strength and importance of competitors according to the proportion of sales or sales volume in the market. Generally speaking, the higher the market share of competitors, the more competitive advantage and influence, the more worthy of attention and analysis. Market share data can be obtained through market research, industry reports, financial statements and other channels.

A strategic group-based approach. This method divides the similarity and difference of competitors according to the strategic positioning and objectives of the enterprise in the market. Generally speaking, the closer the strategic positioning and objectives of competitors, the more competitive potential and threats, the more worthy of attention and analysis. Data on strategic positioning and objectives can be obtained through market research, industry reports, corporate official websites and other channels.

consumer cognition-based approach. This approach divides the degree of substitution and complementarity of competitors based on consumers' perceptions and preferences of firms and competitors. Generally speaking, consumers think that the more alternative or complementary competitors, the more competitive and attractive, the more worthy of attention and analysis. Consumer perception and preference data can be obtained through market research, social media, word-of-mouth evaluation and other channels.

Take Shangpu Consulting Company as an example, its main business is to provide enterprise management consulting services, including strategic planning, organizational change, human resource management, marketing strategy and so on. In identifying competitors, Champ Consulting can take the following steps:

First, based on the market share approach, Champ Consulting can identify other companies that provide the same or similar consulting services in the Chinese market, such as McKinsey, Boston Consulting, Deloitte, and PricewaterhouseCoopers. Potential competitors.

Secondly, according to the strategic group method, Shangpu Consulting can further subdivide the strategic positioning and objectives of these competitors. For example, McKinsey and Boston Consulting are mainly high-end strategic consulting, mainly serving large enterprises and government agencies, while Deloitte and PricewaterhouseCoopers are mainly comprehensive consulting, mainly serving small and medium-sized enterprises and private institutions. These companies are direct competitors of Shangpu Consulting.

Finally, according to the method of consumer cognition, Shangpu Consulting Company can further understand the consumer's cognition and preference to these competitors. For example, McKinsey and Boston Consulting are considered by consumers as leaders and authorities in the consulting industry, with the characteristics of high quality and high prices, while Deloitte and PricewaterhouseCoopers are considered by consumers as followers and doers in the consulting industry, with comprehensive and practical characteristics, these companies are all serious competitors of champ consulting.

Through these steps, Champ Consulting can identify its most direct and important competitors, thereby narrowing the scope of analysis and improving analytical efficiency.

2. collection of competitor information

Competitor information refers to all kinds of data and information about competitors, including competitors' background, products, prices, channels, promotions, services, finance, strategy, culture, organization, personnel, technology, innovation, reputation, etc. The purpose of collecting competitor information is to obtain a comprehensive and accurate portrait of competitors, understand their strengths and weaknesses, predict their behaviors and strategies, and assess their threats and opportunities. There are several ways to collect competitor information:

methods based on open sources. This method is through the use of public information channels, such as the Internet, media, reports, exhibitions, conferences, recruitment, patents, trademarks, etc., to obtain information about competitors. The advantages of this method are large amount of information, easy access and low cost, while the disadvantages are information quality, update lag and lack of depth.

Methods based on private sources. This method is through the use of private information channels, such as suppliers, distributors, customers, employees, partners, industry associations, consulting agencies, etc., to obtain competitor information. The advantages of this method are high quality of information, timely update and depth, while the disadvantages are small amount of information, difficult to obtain and high cost.

active survey-based approach. This method is to obtain information about competitors by actively designing and implementing some survey activities, such as questionnaires, interviews, observations, trial purchases, trials, etc. The advantage of this method is that the information is highly targeted, controllable and credible; the disadvantage is that the information is highly sensitive, risky and legal.

In the case of Champ Consulting, for example, when it collects competitor information, it can take the following steps:

First of all, according to the open source method, Shangpu consulting company can obtain the basic information of competitors from the network, media, reports, exhibitions, conferences and other channels, such as background, product, price, channel, promotion, service, finance, strategy, etc., and establish the basic files of competitors.

Secondly, according to the method of private source, Shangpu consulting company can obtain in-depth information of competitors from suppliers, distributors, customers, employees, partners, industry associations, consulting institutions and other channels, such as culture, organization, personnel, technology, innovation, reputation, etc., and establish in-depth files of competitors.

Finally, according to the active survey method, Shangpu Consulting can design and implement some survey activities, such as questionnaires, interviews, observations, trial purchases, trials, etc., to obtain dynamic information about competitors, such as behavior, strategies, reactions, changes, etc., and establish dynamic files of competitors.

Through the above steps, Champ Consulting can collect comprehensive and accurate information about its competitors, thus providing data support for subsequent analysis and response.

3. analysis of competitor information

Competitor information analysis refers to the use of some analytical tools and methods, such as SWOT analysis, Porter's five forces model, value chain analysis, core competitiveness analysis, competitor response analysis, etc., to collate, summarize, compare and explain the collected competitor information to understand the strengths and weaknesses of competitors, predict the behavior and strategies of competitors, and assess the threats and opportunities of competitors. The purpose of competitor information analysis is to extract the core characteristics and key factors of competitors, so as to provide a basis for formulating their own competitive advantages and countermeasures. There are several ways to analyze competitor information:

SWOT analysis. This method is based on the competitor's internal and external environment, to analyze the competitor's strengths (Strengths), weaknesses (Weaknesses), opportunities (Opportunities) and threats (Threats), so as to obtain a comprehensive evaluation of competitors and development trends. The advantages of SWOT analysis are simple to understand, comprehensive and objective, and widely applicable; the disadvantages are too static, lack of quantification, and subjectivity.

Porter's Five Forces Model. This method is based on the industry environment of competitors, to analyze the five competitive forces faced by competitors, namely, competitors in the industry (Rivalry), potential new entrants (New Entrants), substitutes or services (Substitutes), suppliers (Suppliers) and buyers (Buyers), so as to obtain the competitive pressure and competitive advantage of competitors. Porter's five forces model has the advantages of comprehensive system, clear logic and strong guidance, while the disadvantages are too theoretical, ignoring other factors and dynamic.

Value Chain Analysis. This method is based on the value creation process of competitors to analyze the main activities and support activities of competitors, that is, the main activities include internal logistics, production, external logistics, marketing and sales, after-sales service, support activities include procurement, technology development, human resources management, infrastructure, so as to obtain the value chain structure and value chain advantages of competitors. The advantage of value chain analysis is that it is detailed, focused and conducive to comparison; the disadvantage is that it is too complex, difficult to obtain data, and there are differences.

Core Competence Analysis. This method is based on the core resources and capabilities of competitors, to analyze the core competitiveness of competitors, that is, to provide customers with unique value, difficult to be imitated or replaced by competitors, can be applied to multiple markets or products resources and capabilities, so as to obtain the core advantages and core problems of competitors. The advantage of core competitiveness analysis is that it highlights the essence, is conducive to innovation, and contributes to sustainability; the disadvantage is that it is difficult to define, easy to blur, and there is variability.

Competitor response analysis. This method is based on the historical behavior and current situation of competitors, to analyze the response tendency and response ability of competitors, that is, the degree and reaction speed of competitors to market changes or competitive actions, so as to obtain the response characteristics and response strategies of competitors. The advantages of competitor response analysis are dynamic real-time, accurate prediction and effective guidance; the disadvantages are information sensitivity, uncertainty and interference.

In the case of Champ Consulting, which analyzes competitor information, the following steps can be taken:

First of all, according to the SWOT analysis, Shangpu Consulting can analyze the strengths and weaknesses, opportunities and threats of its direct competitors from four aspects, such:

Competitor strengths Weaknesses Opportunities Threats

McKinsey has strong brand influence, strategic consulting specialty, rich customer resources, sufficient talent reserve, high price, narrow service scope, weak innovation ability, market saturation, emerging market expansion, new technology application, new business development, new cooperation mode, competition of other high-end consulting companies, changes in customer demand, formulation of industry norms, and influence of public opinion

Boston Consulting Group has high brand reputation, leading strategic consulting, high customer satisfaction, excellent talent training, high price, single service, slow innovation speed, fierce market competition, emerging market entry, new technology mastery, new business development, new partners, challenges from other high-end consulting companies, diversification of customer needs, implementation of industry norms, and pressure from public opinion

Deloitte has high brand awareness, comprehensive consulting, extensive customer coverage, flexible talent flow, low price, uneven service quality, low customer loyalty, serious brain drain, emerging market development, new technology application, new business innovation, new cooperation methods, the impact of other comprehensive consulting companies, the improvement of customer demand, the change of industry norms, and the query of public opinion

PricewaterhouseCoopers has good brand reputation, comprehensive consulting specialty, stable customer relationship, reasonable talent structure, moderate price, average service level, slow customer growth, limited talent development, expansion of emerging markets, new technology integration, new business exploration, new cooperation opportunities, erosion of other comprehensive consulting companies, change of customer demand, adjustment of industry norms, evaluation of public opinion

Second, according to the Porter Five Forces model, Champ Consulting can analyze the competitive forces of its industry in five separate ways, such:

competitive power analysis

Competitors in the industry There are many competitors in the consulting industry, including internationally renowned consulting companies, such as McKinsey, Boston Consulting, Deloitte, PricewaterhouseCoopers, etc., as well as domestic rising consulting companies, such as Huawei Consulting, Huawei Consulting, etc. The competition among competitors mainly includes price competition, service competition, brand competition, talent competition, etc. The competition intensity among competitors is relatively high, the competitive pressure on Champ Consulting is greater.

The entry barriers of potential new entrants in the consulting industry are relatively low, mainly including capital, talents, technology, customers, brands and so on. With the development of the market and the progress of technology, potential new entrants continue to emerge, such as Internet companies, software companies, educational institutions and so on. The competition modes of potential new entrants mainly include innovative competition, differentiated competition, differentiated competition, diversified competition and so on, potential new entrants have a higher competitive threat and a greater competitive advantage over Champ Consulting.

There are many substitutes or services in the substitute or service consulting industry, mainly including independent research and development, internal training, outsourcing services, free consultation, etc. With the changes of customers' needs and preferences, the attractiveness of substitutes or services continues to increase, such as Internet platforms, social media, online courses, etc. The competition methods of substitutes or services mainly include price advantage, convenience advantage, personalized advantage, interactive advantage, etc, the competitive potential of alternatives or services is higher and more competitive for Champ Consulting.

There are few suppliers in the supplier consulting industry, mainly including information providers, technology providers, talent providers, site providers, etc. With the change of the market and the update of technology, the influence of suppliers is constantly improving, such as cloud computing, big data, artificial intelligence, etc. The competition mode of suppliers mainly includes quality advantage, efficiency advantage, innovation advantage, cooperation advantage, etc. The competitiveness of suppliers is relatively high, the competitive advantage over Champ Consulting is greater.

There are many buyers in the buyer consulting industry, mainly including government agencies, large enterprises, small and medium-sized enterprises, private institutions, etc. With the maturity of the market and the growth of buyers, the bargaining power of buyers is continuously enhanced, such as cost awareness, effect requirements, service period, after-sales guarantee, etc. The buyer's competition mode mainly includes strong selectivity, high requirements, low loyalty, high conversion, and high competitiveness of buyers, the competitive pressure on Champ Consulting is greater.

Again, based on the value chain analysis, Champ Consulting can analyze the main and supporting activities of its competitors in two ways, such:

Competitor Key Activity Support Activity

McKinsey Intra Logistics: Rapid transfer and sharing of information and knowledge through efficient information systems and knowledge management systems. Production: High standards and efficient execution of consulting projects through high-quality consulting methods and tools. External logistics: Through high-level customer relationship management and project management, to achieve high satisfaction and high success rate of delivery of consulting projects. Marketing and sales: through high-end brand image and word-of-mouth communication, to achieve high visibility and high credibility of consulting services promotion. After-sales service: through high-frequency customer communication and feedback, to achieve high-quality and high-value protection of consulting services. Procurement: Through high-specification supplier selection and evaluation, high-quality and efficient acquisition of information, technology, talents, venues and other resources required for consulting projects. Technology development: through high investment in research and development and innovation, to achieve the continuous improvement and updating of consulting methods and tools. Human resource management: through high standards of recruitment and training, to achieve high quality and high ability of consulting staff training and motivation. Infrastructure: through the high standard of office environment and equipment, to achieve the consultant's high efficiency and high comfort of the work and life.

Boston Consulting Intra Logistics: The effective transfer and sharing of information and knowledge through advanced information systems and knowledge management systems. Production: Achieve excellent and efficient execution of consulting projects through quality consulting methods and tools. External logistics: Through excellent customer relationship management and project management, to achieve high-quality and high-success delivery of consulting projects. Marketing and sales: through the excellent brand image and word-of-mouth communication, to achieve the excellent degree of consulting services and credibility of the promotion. After-sales service: through high-quality customer communication and feedback, to achieve high-quality consulting services and high-value protection. Procurement: through high-quality supplier selection and evaluation, to achieve the consulting project required information, technology, talent, space and other resources of high quality and efficient acquisition. Technical development: through excellent research and development and innovation, to achieve the continuous improvement and update of consulting methods and tools. Human resource management: through excellent recruitment and training, to achieve the excellent and high ability of consulting staff training and motivation. Infrastructure: Through the excellent office environment and equipment, to achieve the consultant's efficient and comfortable work and life.

Deloitte internal logistics: through ordinary information systems and knowledge management systems, to achieve the basic transfer and sharing of information and knowledge. Production: general and efficient execution of consulting projects through general consulting methods and tools. External logistics: through general customer relationship management and project management, to achieve general and high success rate of delivery of consulting projects. Marketing and sales: through the general brand image and word-of-mouth communication, to achieve the general degree of consulting services and credibility of the promotion. After-sales service: through general customer communication and feedback, the general and high-value guarantee of consulting services is realized. Procurement: through the general selection and evaluation of suppliers, to achieve the general and efficient acquisition of information, technology, talent, space and other resources required for consulting projects. Technical development: through general research and development and innovation, to achieve the basic improvement and update of consulting methods and tools. Human resources management: through the general recruitment and training, to achieve the general and high ability of consulting staff training and motivation. Infrastructure: through the general office environment and equipment, to achieve the consultant's efficient and comfortable work and life.

PricewaterhouseCoopers internal logistics: through good information systems and knowledge management systems, to achieve effective transmission and sharing of information and knowledge. Production: Good and efficient execution of consulting projects through good consulting methods and tools. External logistics: through good customer relationship management and project management, to achieve good and high success rate of delivery of consulting projects. Marketing and sales: through a good brand image and word-of-mouth communication, to achieve the good degree of consulting services and credibility of the promotion. After-sales service: through good customer communication and feedback, to achieve good and high-value protection of consulting services. Procurement: through good supplier selection and evaluation, to achieve good and efficient acquisition of information, technology, talent, space and other resources required for consulting projects. Technical development: continuous improvement and updating of consulting methods and tools through good R & D and innovation. Human resource management: through good recruitment and training, to achieve the good and high ability of consulting staff training and motivation. Infrastructure: Through a good office environment and equipment, to achieve efficient and comfortable work and life of consultants.

Finally, based on the core competency analysis, Champ Consulting can analyze the core resources and capabilities of its competitors in two ways, such:

Competitors Core resources Core competencies

McKinsey Brand Resources: McKinsey has the world's most well-known consulting brand, with extremely high brand influence and brand value. Customer resources: McKinsey has the world's best consulting clients, including the world's top 500 companies and government agencies, with extremely high customer resource advantages and customer satisfaction. Human resources: McKinsey has the world's best consulting talents, including top MBA graduates and industry experts, with extremely high human resources advantages and talent reserves. Strategic planning capabilities: McKinsey specializes in providing clients with high-end strategic planning services, including corporate strategy, business strategy, functional strategy, etc., with extremely high strategic planning capabilities and strategic consulting professionalism. Problem solving ability: McKinsey is good at solving complex management problems for customers, including organizational change, human resource management, marketing strategy, etc., with extremely high problem solving ability and consulting project execution.

Boston consulting brand resources: Boston consulting has the world's best consulting brand, has a high brand reputation and brand value. Customer resources: Boston Consulting Group has the world's most satisfied consulting customers, including the world's top 500 companies and government agencies, with extremely high customer resource advantages and customer loyalty. Human resources: Boston Consulting Group has the world's most elite consulting talents, including top MBA graduates and industry experts, with extremely high human resources advantages and talent training. Strategic leadership: Boston Consulting Group is good at providing customers with leading strategic consulting services, including corporate strategy, business strategy, functional strategy, etc., with extremely high strategic leadership and strategic consulting leadership. Innovation-driven ability: Boston Consulting Group is good at providing customers with innovative consulting solutions, including organizational change, human resource management, marketing strategy, etc., with extremely high innovation-driven ability and innovative consulting projects.

Deloitte brand resources: Deloitte has the world's most well-known comprehensive consulting brand, with high brand awareness and brand value. Customer resources: Deloitte has the world's most extensive consulting customers, including large, medium and small enterprises and private institutions, with high customer resource advantages and customer coverage. Human resources: Deloitte has the most flexible consulting talents in the world, including consultants with various backgrounds and experiences, with high human resource advantages and talent mobility. Comprehensive service capabilities: Deloitte is good at providing customers with comprehensive comprehensive consulting services, including strategic planning, organizational change, human resource management, marketing strategy, financial management, risk management, etc., with high comprehensive service capabilities and comprehensive consulting professionalism. Practical solution ability: Deloitte is good at providing customers with practical consulting solutions, including organizational change, human resource management, marketing strategy, etc., with high practical solution ability and practicality of consulting projects.

PricewaterhouseCoopers brand resources: PricewaterhouseCoopers has the world's best comprehensive consulting brand, with a high brand reputation and brand value. Customer resources: PwC has the world's most stable consulting customers, including large, medium and small enterprises and private institutions, with high customer resource advantages and customer relationship. Human resources: PwC has the most reasonable consulting talents in the world, including consultants with various backgrounds and experiences, and has a high talent resource advantage and talent structure. Professional service capabilities: PricewaterhouseCoopers is good at providing customers with professional comprehensive consulting services, including strategic planning, organizational change, human resource management, marketing strategy, financial management, risk management, etc., with high professional service capabilities and professional consulting professionalism. Effective solution ability: PwC is good at providing customers with effective consulting solutions, including organizational change, human resource management, marketing strategy, etc., with high effective solution ability and consulting project effectiveness.

4. develop competitor response strategies

Competitor response strategy refers to the process of formulating corresponding actions and measures against competitors based on the results of competitor information analysis, as well as their own goals and capabilities, in order to achieve their own competitive advantage and market goals. The purpose of developing a competitor response strategy is to effectively respond to threats and opportunities from competitors and to enhance their competitiveness and market share. There are several ways to develop a competitor's coping strategy:

Attack strategy. This strategy refers to the strategy of increasing one's own advantage and influence by actively attacking competitors in order to weaken their advantage and influence. The applicable conditions of attack strategy are obvious advantages of its own, prominent disadvantages of competitors and great growth potential of the market. The attack strategy can be implemented in the following ways:

Front-end attack: refers to a direct attack on a competitor's main market or product in terms of price, quality, service, etc., in order to compete for the competitor's core customers and market share.

Flanking attack: refers to the secondary market or product of a competitor, in the form of innovation, differentiation, segmentation and other ways to attack, in order to open up the potential customers and market space of competitors.

Surrounding attack: refers to the attack on the competitor's primary and secondary markets or products at the same time, in a comprehensive, balanced, diversified and other ways, in order to occupy the competitor's overall customer and market area.

Penetration attack: A gradual attack on a competitor's market segment or product in a low-cost, efficient, and professional manner to erode some of the competitor's customers and market share.

Defensive attack: refers to the potential or actual attack of competitors, with stability, loyalty, innovation and other ways to counter, in order to protect their existing customers and market share.

Defense strategy. This strategy refers to the strategy of reducing the advantage and influence of competitors by passively defending against competitors in order to maintain their own advantage and influence. The applicable conditions of defense strategy are that its own advantages are not obvious, the advantages of competitors are prominent, and the growth potential of the market is small. Defense strategies can be implemented in the following ways:

Delaying defense: Deferring or refusing to respond to a competitor's attack in order to consume the competitor's resources and patience and reduce the effectiveness of the competitor's attack.

Avoidance defense: Refers to the avoidance or abandonment of direct confrontation with competitors in order to seek or develop other markets or products to reduce the scope of the competitor's attack.

Imitation defense: refers to imitating or copying a competitor's attack methods in order to reduce or eliminate the competitor's differentiation advantage and reduce the impact of a competitor's attack.

Reactive defense: Refers to the timely or rapid response to a competitor's attack in order to correct or improve one's own market or product and reduce the loss of a competitor's attack.

Strengthen defense: refers to the promotion or optimization of their own market or product, in order to increase or expand their own differentiation advantage, reduce the attack opportunities of competitors.

Cooperation strategy. This strategy refers to the strategy of cooperating with competitors to achieve win-win and market sharing. The applicable conditions of the cooperation strategy are the complementary advantages of its own, the complementary advantages of competitors and the large growth potential of the market. The cooperative strategy can be implemented in the following ways:

Alliance cooperation: refers to the establishment of strategic alliances or joint ventures with competitors to share resources and capabilities to achieve joint development and operation of markets or products.

Division of labor and cooperation: refers to the division of labor and complementary advantages of the market or product by sharing different parts of the market or product with competitors in order to focus on resources and capabilities.

Learning cooperation: refers to the exchange of information and experience with competitors to learn resources and capabilities to achieve continuous improvement and innovative development of markets or products.

Regulatory cooperation: refers to the negotiation of rules and standards with competitors to regulate resources and capabilities to achieve orderly competition and healthy development of markets or products.

In the case of Champ Consulting, for example, the following steps can be used to develop a competitor response strategy:

First of all, according to its own goals and capabilities, Shangpu Consulting can determine its positioning and goals in the consulting industry, that is, to become a leader in providing high-quality, efficient, and high-value comprehensive consulting services, and achieve a leading position in the Chinese market. And the expansion goal of the global market.

Secondly, based on the strengths and weaknesses of competitors, Champ Consulting can determine its coping strategies for different competitors, such:

For McKinsey and Boston Consulting Group, Shangpu Consulting Company can adopt the strategy of flanking attack and division of labor, that is, through innovation and differentiation, it can open up the market of small and medium-sized enterprises and private institutions to compete for the customers and market space ignored by high-end consulting companies; at the same time, it can establish strategic alliances or joint ventures with high-end consulting companies to share resources and capabilities, achieve the joint development and operation of markets for large enterprises and government agencies.

For Deloitte and PricewaterhouseCoopers, Shangpu Consulting Company can adopt the strategy of front-end attack and reaction defense, that is, through the way of price, quality and service, directly targeting the main market or product of the comprehensive consulting company, so as to compete for the core customers and market share of the comprehensive consulting company; at the same time, through timely or rapid response to the attack of the comprehensive consulting company, to correct or improve its own market or product, to reduce attack losses for integrated consulting firms.

Finally, according to the changes and opportunities of the market, Shangpu Consulting Company can constantly adjust and optimize its competitors' coping strategies to adapt to the development of the market and the needs of customers, so as to achieve its own competitive advantages and market goals.