Purpose of 1. Competitor Analysis

The main purpose of competitor analysis is to help enterprises improve their competitiveness, including the following aspects:

-Understand your own strengths and weaknesses. By comparing and analyzing the differences between itself and its competitors in terms of products, prices, channels, marketing, services, quality, technology, innovation and brand, we can clearly understand our own competitive advantages and disadvantages, find out our own core competitiveness and the direction of improvement, and improve our own competitiveness.

-Discover opportunities and threats in the market. By monitoring and analyzing competitors' strategies, dynamics, behaviors, changes, etc., we can discover market trends and potential demands in a timely manner, seize market opportunities, avoid or respond to market threats, and improve market predictability and adaptability.

-Develop reasonable goals and strategies. By evaluating and analyzing the strength, status and development of itself and its competitors, we can determine our own competitive objectives and strategic direction, formulate competitive strategies and action plans that meet our own conditions and market environment, and improve the effectiveness and efficiency of competition.

-Optimize the allocation and utilization of resources. By analyzing the resources, capabilities, costs and benefits of competitors, we can optimize our own resource allocation and utilization, improve the utilization rate and rate of return of resources, reduce the waste and risk of resources, and improve the competitiveness of resources.

-Enhancing market responsiveness and innovation. By analyzing the reaction speed, innovation level and innovation mode of competitors, we can improve our market reaction ability and innovation ability, quickly respond to market changes and needs, constantly introduce new products and services, and improve market competitiveness.

Content of 2. Competitor Analysis

The content of competitor analysis mainly includes the following aspects:

-Identification of competitors. Competitors are providers of the same or similar products or services that compete with an enterprise in the same market or in the same market segment. The identification of competitors is the basis of competitor analysis, which needs to determine the competitors that have direct or indirect competitive relationship with the enterprise, as well as the type, quantity, scale and importance of competitors, according to the market division, product substitution, customer demand and other factors.

-Competitor's strategy. A competitor's strategy is the overall approach and guidelines for action taken by a competitor to achieve its competitive objectives. The strategic analysis of competitors is the core of competitor analysis, which needs to determine the strategic direction, strategic choice, strategic advantage, strategic risk, etc. of competitors according to their mission, vision, goals, values, culture and other factors.

-Advantages of competitors. A competitor's advantage is the superiority or ability that a competitor has in a competitive market relative to a firm or other competitor. Competitor advantage analysis is the focus of competitor analysis, according to the competitor's product, price, channel, marketing, service, quality, technology, innovation, brand and other factors, to determine the competitor's advantage areas, degree of advantage, source of advantage, advantage continuity and so on.

-Weaknesses of competitors. A competitor's disadvantage is the weakness or weakness of a competitor relative to a firm or other competitor in a market competition. Competitor disadvantage analysis is a supplement to competitor analysis, which needs to be based on the competitor's product, price, channel, marketing, service, quality, technology, innovation, brand and other factors to determine the competitor's disadvantage areas, the degree of disadvantage, the cause of the disadvantage, the improvement of the disadvantage, etc.

-Competitor dynamics. Competitor dynamics are the changes or trends shown by competitors in the market. The dynamic analysis of competitors is an extension of competitor analysis, which needs to determine the dynamic direction, dynamic speed, dynamic impact, dynamic prediction, etc. of competitors according to their strategies, strengths, weaknesses and other factors.

3. methods of competitor analysis

The main methods of competitor analysis include the following:

-SWOT analysis. SWOT analysis is a commonly used strategic analysis tool, by analyzing the strengths (Strengths), weaknesses (Weaknesses), opportunities (Opportunities) and threats (Threats) of competitors, you can comprehensively assess the competitive situation and development prospects of competitors, as well as their own competitive strategies and countermeasures.

-Five forces analysis. Five Forces Analysis is a classic industry analysis tool that provides an in-depth analysis of the competitive strengths and weaknesses of competitors, as well as the attractiveness and profitability of the industry, by analyzing the five competitive forces in the industry, namely, existing competitors, infiltrators, potential competitors, substitutes and suppliers, and buyers.

-Competition Map Act. The competitive map method is an intuitive competitive analysis tool that can form a two-dimensional or multi-dimensional competitive map by positioning and comparing competitors according to two or more important competitive dimensions in order to clearly show the relative positions and differences of competitors, as well as their own competitive space and direction.

-Competitive Intelligence Act. Competitive intelligence law is a systematic competitive analysis tool, through the collection, collation, analysis and utilization of various information of competitors, can timely understand the competitor's strategy, dynamics, behavior, changes, etc., in order to formulate effective competitive strategies and countermeasures.

Steps to 4. competitor analysis

The steps of competitor analysis include the following:

-Determine the objectives and scope of the analysis. According to the competitive objectives and strategic needs of the enterprise, the purpose and significance of the competitor analysis, as well as the content and depth of the analysis, determine the main problems and key points of the analysis, and formulate the analysis plan and program.

-Collect information and data for analysis. According to the objectives and scope of the analysis, appropriate information and data sources, such as public literature, reports, websites, media, etc., or non-public surveys, interviews, observations, etc., are used to collect information and data related to competitors, such as the basic situation, strategies, strengths, weaknesses, dynamics, etc. of competitors, and pay attention to the validity and reliability of information and data.

-Collate and analyze information and data. According to the objectives and scope of the analysis, appropriate analytical methods and tools, such as SWOT analysis, five-force analysis, competitive mapping, competitive intelligence, etc., are used to organize, classify, summarize, compare, evaluate, etc., and form valuable analytical results andConclusionPay attention to the logic and objectivity of the analysis.

-Write analytical reports and recommendations. Depending on the objectives and scope of the analysis, the results of the analysis will be analyzed using the appropriate reporting format and language, such as text, charts, numbers, etc.ConclusionSummarize, summarize, elaborate, etc., and write a clear, complete, and persuasive analysis report, based on the results of the analysis andConclusionPut forward targeted competitive strategies and suggestions, pay attention to the readability and operability of the report.

Considerations 5. Competitor Analysis

Competitor analysis is a complex and important task that requires attention to the following aspects:

-Competitor analysis should be an ongoing process, not a one-time event, and it is necessary to collect, update, analyze and utilize competitors' information and data on a regular basis in order to maintain sensitivity and vigilance to competitors and to adjust their competitive strategies and responses in a timely manner.

-Competitor analysis should be a selective focus, rather than an indiscriminate comprehensive, need to be based on their own competitive objectives and strategic needs, to identify the most important competitors and the most critical competitive dimensions, in order to improve the efficiency and effectiveness of the analysis, to avoid redundancy and waste of analysis.

-Competitor analysis should be a well-founded analysis, not a guess out of thin air, and it is necessary to use reasonable analytical methods and tools based on reliable sources of information and data to ensure the effectiveness and credibility of the analysis and to avoid bias and misleading analysis.

-Competitor analysis should be a purposeful application, not an isolated existence, based on the results of the analysis andConclusion, formulate targeted and feasible competitive strategies and coping suggestions to realize the value and significance of analysis and avoid the form and nothingness of analysis.

Examples

Champu Consulting is a professional strategic consulting firm that provides clients with a variety of consulting services, including competitor analysis. The following is a simple example of a competitor analysis service provided by Champ Consulting for an automobile manufacturer:

-The goal and scope of the analysis: The automobile manufacturer is a medium-sized domestic enterprise, mainly producing and selling low-end family cars. It is facing fierce competition from multiple competitors at home and abroad. It hopes to understand its own competitive advantages and disadvantages through competitor analysis, discover market opportunities and threats, and formulate effective competitive strategies and countermeasures. The scope of the analysis mainly includes the company's three main competitors in the domestic market, namely, the three automakers A, B, and C. The analysis mainly includes the strategies, strengths, weaknesses, and dynamics of these three competitors.

-Collect and analyze information and data: Shangpu Consulting has collected information and data related to these three competitors through various channels, such as public documents, reports, websites, media, etc., or non-public surveys, interviews, observations, etc., such as basic information, products, prices, channels, marketing, services, quality, technology, innovation, brands, etc, and the comparison data with the enterprise, forming a detailed competitor information and database.

-Sorting out and analyzing information and data: Shangpu Consulting has adopted a variety of analytical methods and tools, such as SWOT analysis, five-force analysis, competition map, competitive intelligence, etc., to sort out, classify, summarize, compare and evaluate the collected information and data, forming the following analysis results andConclusion：

Company A is a large international enterprise, which mainly produces and sells middle and high-end family cars. Its strategy is to take brand, quality and technology as the core, innovation and service as the characteristics, and globalization and diversification as the direction. Its advantage is that it has a high level and reputation in terms of brand, quality, technology, innovation and service, while its disadvantage is that it is relatively weak in terms of price, channel and marketing, its dynamic is to continuously expand the share and influence of the domestic market, while introducing new products and services to respond to market changes and needs.

Company B is a medium-sized domestic enterprise, which mainly produces and sells middle and low-end family cars. Its strategy is to take price, channel and marketing as the core, scale, speed and efficiency as the characteristics, and domestic and specialization as the direction. Its advantage is that it has strong competitiveness and market share in price, channel and marketing, its disadvantage is that it is relatively weak in terms of brand, quality, technology, innovation, and service. Its dynamics are continuously increasing the coverage and penetration of the domestic market, while reducing costs and improving efficiency to cope with market competition and pressure.

Company C is a small domestic enterprise, which mainly produces and sells middle and high-end family cars. Its strategy is to take technology, innovation and service as the core, quality, brand and differentiation as the characteristics, and domestic and high-end as the direction. Its advantage is that it has high level and potential in technology, innovation and service, while its disadvantage is that it is relatively weak in price, channel and marketing, its dynamic is to continuously improve the visibility and recognition of the domestic market, while developing new products and services to respond to market changes and needs.

This enterprise is a medium-sized domestic enterprise, which mainly produces and sells middle and low-end family cars. Its strategy is to take products, quality and service as the core, to be stable, balanced and sustainable, and to be domestic and diversified. Its advantage is to have a good level and reputation in terms of products, quality and service, its disadvantage is that it is relatively weak in terms of price, channel, marketing, technology, innovation, brand, etc. Its dynamics are to continuously maintain the share and profit of the domestic market, while seeking new products and services to respond to market changes and needs.

-Write analytical reports and recommendations: Champ Consulting based on the results of the analysis andConclusion, wrote a detailed competitor analysis report, which includes the following parts:

The basic situation and strategic analysis of competitors, A, B, C three competitors of the basic situation and strategy are summarized and compared, highlighting their respective strategic direction, strategic choice, strategic advantage, strategic risk, etc.

The analysis of the advantages and disadvantages of competitors, A, B, C three competitors of the advantages and disadvantages of a detailed and comparative, highlighting their respective areas of advantage, degree of advantage, source of advantage, continuity of advantage, as well as areas of disadvantage, degree of disadvantage, reasons for disadvantage, disadvantage improvement.

The dynamic analysis of competitors, A, B, C three competitors in-depth and comparison of the dynamics, highlighting their respective dynamic direction, dynamic speed, dynamic impact, dynamic prediction and so on.

The competition map of competitors, according to the advantages and disadvantages and dynamics of competitors, positions and compares the three competitors A, B and C according to the four important competitive dimensions of brand, quality, price and innovation, forming a four-dimensional competition map, which clearly shows the relative positions and differences of competitors, as well as the competitive space and direction of the enterprise.

Competitor's competitive strategy and response recommendations, based on the competitor's strategy, strengths and weaknesses, dynamics and competitive map, for the enterprise to put forward the following competitive strategy and response recommendations:

For Company A, the company should adopt a defensive competitive strategy, that is, while maintaining its own products, quality, service and other advantages, try to avoid direct conflicts with Company A in terms of brand, technology, innovation, etc., but look for Company A. The company's disadvantages in terms of price, channel, marketing, etc., as well as the potential market demand, conduct differentiated competition, and increase its market share and profit margin.

For Company B, the company should adopt an offensive competitive strategy, that is, while maintaining its own advantages in products, quality and service, it should try its best to compete with Company B in terms of price, channel and marketing, and make use of its own brand, quality and service to improve its market share and reputation and seize the market share and customer base of Company B.

For C company, the enterprise should adopt a cooperative competitive strategy, that is, while maintaining its own advantages in products, quality and service, it should try its best to cooperate with C company in technology, innovation and service, and make use of C company's advantages in technology, innovation and service to improve its product level and market competitiveness, and jointly open up new markets and customer groups.