Theoretical basis of 1. competitor analysis

There are two main theoretical foundations for competitor analysis: the theory of competitive strategy and the theory of competitive intelligence.

The theory of competitive strategy was put forward by Michael Porter, a professor at Harvard University in the United States, in his book Competitive Strategy, which holds that competitive strategy refers to the action plan taken by enterprises in order to gain competitive advantage and achieve long-term goals in a competitive environment. The core of competitive strategy is to analyze the competitive environment, that is, Porter's five forces model, which divides the competitive environment into five forces: competitors in the industry, potential entrants, substitutes, suppliers and buyers. By analyzing the intensity and changes of these five forces, the profitability and degree of competition of the industry can be determined, as well as the competitive position and competitive strategy of the enterprise. Porter argues that firms can gain competitive advantage through three basic competitive strategies, namely, cost leadership, differentiation, and concentration strategies.

The theory of competitive intelligence was put forward by Leonard Fiske, a professor at the University of Michigan in his book Competitive Intelligence, which holds that competitive intelligence refers to the process of collecting, analyzing and disseminating information about competitors, customers, suppliers, technology, markets, regulations, etc. to support the strategic decisions and actions of enterprises. The purpose of competitive intelligence is to improve the competitive awareness of enterprises, find competitive opportunities and threats, predict the behavior and trends of competitors, and formulate effective competitive countermeasures. The process of competitive intelligence includes four stages: demand analysis, information collection, information analysis and information dissemination.

Methodological framework for 2. competitor analysis

The methodological framework for competitor analysis has two main levels: macro-level industry analysis and micro-level competitor analysis.

Industry analysis refers to the systematic analysis of the structure, development, trends, scale, degree of competition, profitability, etc. of the entire industry to determine the attractiveness and barriers to entry of the industry. The main methods of industry analysis are as follows:

Five Forces Model: Assess the competitive intensity and profitability of the industry, as well as the competitive position and competitive strategy of the firm, by analyzing the forces of competitors, potential entrants, substitutes, suppliers and buyers within the industry.

Industry life cycle: by analyzing the growth stage, maturity stage, decline stage and regeneration stage of the industry, predict the development trend and change of the industry, as well as the survival and development strategy of the enterprise.

Value chain analysis: by analyzing the upstream, midstream and downstream activities of the industry, identify the core values and key success factors of the industry, as well as the value creation and value capture capabilities of the enterprise.

Driving force analysis: By analyzing the political, economic, social, technological, environmental and legal factors of the industry, we can determine the change driving forces and influence of the industry, as well as the opportunities and threats of the enterprise.

Competitor analysis refers to the in-depth analysis of the strategies, strengths, weaknesses, opportunities and threats of a particular competitor to determine the objectives, motivations, assumptions, capabilities and behaviors of the competitor, as well as the competitive advantages and competitive countermeasures of the enterprise. The main methods of competitor analysis are as follows:

Competitor identification: by analyzing the demand, supply, segmentation and positioning of the market, the direct and indirect competitors of the enterprise, as well as potential competitors and substitutes.

Competitor assessment: by analyzing the strategy, resources, capabilities, strengths, weaknesses, opportunities and threats of competitors, to assess the competitiveness and competitive situation of competitors, as well as the competitive advantages and disadvantages of enterprises.

Competitor prediction: By analyzing the objectives, motivations, assumptions, beliefs and behaviors of competitors, it predicts the future strategies and actions of competitors, as well as the competitive opportunities and threats of the enterprise.

Competitive countermeasure formulation: By analyzing the strengths and weaknesses of competitors, the enterprise's competitive strategy and competitive action are determined to improve the enterprise's competitive advantage and market position.

Implementation steps for 3. competitor analysis

The implementation steps for competitor analysis include the following four main steps:

The first step is to determine the purpose and scope of the analysis. The purpose of the analysis refers to the purpose and significance of the analysis, and the scope of the analysis refers to the object and content of the analysis. The purpose and scope of the analysis should be determined according to the actual situation and needs of the enterprise, while considering the feasibility and effectiveness of the analysis.

The second step is to collect and organize information. Information collection refers to obtaining relevant information about the industry and competitors through various channels and methods, including internal and external information. Information collation refers to the classification, screening, verification and induction of the collected information to form valuable information materials.

The third step is to analyze and evaluate the information. Information analysis refers to the use of various analytical methods and tools to process, integrate, interpret and summarize information materials to form meaningful analysis results andConclusion. Information evaluation refers to the analysis of the results and.ConclusionTest, verify, compare and evaluate to determine the reliability and validity of the analysis.

The fourth step is to develop and implement a strategy. Strategy formulation is based on the results of the analysis andConclusionTo determine the enterprise's competitive objectives and strategies, as well as the corresponding action plans and measures. Strategy implementation refers to taking effective actions and measures in accordance with the formulated strategies and plans to achieve the competitive goals and competitive advantages of the enterprise.

Practical application and value of 4. competitor analysis

The practical application and value of competitor analysis can be reflected in the following aspects:

Help companies understand the development of the industry and the competitive environment, grasp the opportunities and threats of the industry, and formulate reasonable market positioning and goals.

Help enterprises to identify and evaluate the strategy and ability of competitors, find out the advantages and disadvantages of competitors, and improve the competitive awareness and vigilance of enterprises.

Help enterprises to predict and respond to the behavior and trends of competitors, formulate effective competitive countermeasures and actions, and enhance the competitive advantage and market position of enterprises.

Help enterprises to discover and create competitive opportunities, seek and realize competitive cooperation, and promote the innovation and development of enterprises.

Shangpu Consulting is a consulting company specializing in market research and competitive intelligence services. It has rich industry experience and expertise to provide customers with high-quality competitor analysis services. Champ Consulting's competitor analysis services include the following:

Industry analysis: Shangpu Consulting provides customers with comprehensive industry analysis reports by using the five-force model, industry life cycle, value chain analysis, and driving force analysis, including industry structure, development, trends, scale, and competition., Profitability and other aspects of information to help customers determine the attractiveness and entry barriers of the industry, as well as their own market positioning and goals.

Competitor identification: Through the use of market demand analysis, market supply analysis, market segmentation analysis and market positioning analysis and other methods, Shangpu Consulting provides customers with accurate competitor identification reports, including direct competitors, indirect competitors, potential competitors and substitutes, to help customers determine the scope and type of competitors, as well as their own competitive advantages and disadvantages.

Competitor evaluation: through the use of strategic analysis, resource analysis, capability analysis, advantage analysis, disadvantage analysis, opportunity analysis and threat analysis and other methods, Shangpu consulting company provides customers with in-depth competitor evaluation report, including competitor's strategy, resources, ability, advantage, disadvantage, opportunity and threat information, to help customers evaluate the competitiveness and competitive situation of competitors, and its own competitive advantages and disadvantages.

Competitor prediction: Shangpu consulting company through the use of target analysis, motivation analysis, hypothesis analysis, belief analysis and behavior analysis and other methods, to provide customers with accurate competitor prediction report, including the competitor's objectives, motivation, assumptions, beliefs and behavior information, to help customers predict the future strategy and actions of competitors, as well as their own competitive opportunities and threats.

Formulation of competitive countermeasures: Shangpu Consulting Company provides customers with effective reports on the formulation of competitive countermeasures, including information on the enterprise's competitive objectives, competitive strategies, competitive actions and competitive measures, by using methods such as competitive advantage analysis, competitive disadvantage analysis, competitive opportunity analysis and competitive threat analysis, to help customers formulate and implement competitive countermeasures and actions to improve the enterprise's competitive advantage and market position.

Our competitor analytics services have provided valuable support and assistance to clients across a number of industries and sectors, such:

An automobile manufacturer, through the competitor analysis service of Shangpu Consulting Company, understands the development status and competitive environment of the domestic and foreign automobile industry, identifies and evaluates its main competitors, predicts the future strategies and actions of competitors, formulates differentiated competitive strategies for different markets and customers, and improves the brand awareness and market share of its products.

An e-commerce platform, through the competitor analysis service of Shangpu Consulting Company, understands the development trend and competition pattern of the e-commerce industry, identifies and evaluates its potential competitors and substitutes, predicts the future behavior and trend of competitors, formulates centralized competition strategies for different market segments and users, and improves the user stickiness and income of its platform.

A pharmaceutical company, through the competitor analysis service of Shangpu Consulting Company, understood the development law and competitive factors of the pharmaceutical industry, identified and evaluated its core competitors, predicted the future technology and products of competitors, formulated innovative competition strategies for different diseases and patients, and improved its product research and development capabilities and market share.

Conclusion

Competitor analysis is an important market research and competitive intelligence method, which can help enterprises understand and deal with the competitive environment, formulate and implement effective competitive strategies, and improve the competitiveness and market position of enterprises. The process of competitor analysis includes four steps: industry analysis, competitor analysis, competitor prediction and competitive countermeasure development, and the methodological framework of competitor analysis includes macro-level industry analysis and micro-level competitor analysis. The practical application and value of competitor analysis can be reflected in helping companies understand industries and competitors, predict and respond to competitors, and develop and implement competitive strategies. Champ Consulting is a consulting firm specializing in competitor analysis services and has provided valuable support and assistance to clients in a number of industries and sectors.