Purpose of 1. Competitor Analysis

The purpose of competitor analysis is to enable enterprises to clearly understand the advantages and disadvantages of themselves and their competitors in a highly competitive market environment, so as to formulate their own competitive strategies and improve competitiveness and profitability. Specifically, competitor analysis can help companies achieve the following goals:

Understand the basic situation of competitors, such as scale, history, products, services, prices, channels, customers, finance, culture, etc., as well as the market position and influence of competitors.

Analyze the strategic intentions of competitors, such as the competitor's vision, mission, goals, values, core competencies, competitive advantages, competitive strategies, etc., as well as the future direction and goals of competitors.

Study the strategic capabilities of competitors, such as competitors' resources, capabilities, organizational structure, management systems, innovation capabilities, risk tolerance, etc., as well as competitors' strengths and weaknesses.

Observe competitors' strategic actions, such as competitors' marketing activities, marketing strategies, product development, technological innovation, partners, mergers and acquisitions, social responsibility, etc., as well as competitors' dynamics and trends.

Evaluate the strategic effectiveness of competitors, such as competitors' market share, sales revenue, profit margin, customer satisfaction, brand awareness, word-of-mouth evaluation, etc., as well as competitors' strengths and weaknesses.

Through competitor analysis, enterprises can comprehensively understand the situation of competitors from multiple dimensions, so as to find out their competitive advantages and disadvantages, find out the opportunities and threats of competitors, formulate targeted competitive strategies, and improve their market competitiveness and profitability.

2. methods of competitor analysis

There are many ways to analyze competitors, and according to different purposes and needs, you can choose the method that suits you. This paper introduces two commonly used competitor analysis methods, Porter's five-force model and SWOT analysis.

1. Porter's Five Forces Model

Porter's Five Forces Model is a tool proposed by Michael Porter, a professor at Harvard University in the United States, to analyze the competitive structure and competitiveness of the industry. The model believes that the five main factors that affect the competitiveness of an industry are: competitors, potential entrants, substitutes, suppliers and buyers in the industry. These five factors constitute the competitive environment of an industry and determine the profitability and attractiveness of an industry. By analyzing the intensity and changes of these five factors, enterprises can understand the competitive situation of their industries, as well as their competitive advantages and disadvantages, so as to formulate appropriate competitive strategies.

Competitors in the industry: Refers to enterprises in the same industry that provide the same or similar products or services, which is the most direct competitive pressure faced by enterprises. The number, size, strength, strategy, and behavior of competitors in the industry will affect the level of competition and profitability of the industry. Generally speaking, the more competitors, the more fierce the competition, the lower the profitability of the industry, and vice versa.

Potential entrant: a potential competitive threat to an enterprise that is likely to enter an industry and compete with an existing enterprise. The existence of potential entrants will increase the competitive pressure of the industry and reduce the profitability of the industry. In general, the higher the barrier to entry into an industry, the lower the threat of potential entrants, and vice versa. Barriers to entering an industry include capital requirements, economies of scale, product differentiation, brand loyalty, government policies, distribution channels, technical barriers, etc.

Substitute: A product or service that meets the same or similar customer needs, but comes from a different industry, which is a potential competitive threat to the company. The existence of substitutes will limit the price and profit margins of the industry and reduce the attractiveness of the industry. Generally speaking, the better the performance of the substitute, the lower the price, the higher the threat of the substitute, and vice versa.

Supplier: A company that provides raw materials, equipment, manpower, capital and other production factors in an industry. It is a partner of the company and a source of competitiveness for the company. The bargaining power of suppliers affects the cost and profit levels of the industry. Generally speaking, the smaller the number of suppliers, the fewer substitutes, the greater the product difference, the higher the conversion cost, and the stronger the bargaining power of the supplier, and vice versa.

Buyer: An individual or organization that buys a product or service in an industry, is a source of income for the enterprise, and is also a competitive target for the enterprise. The bargaining power of the buyer affects the price and profit level of the industry. Generally speaking, the smaller the number of buyers, the higher the concentration, the higher the degree of product standardization, the lower the conversion cost, and the stronger the buyer's bargaining power, and vice versa.

Application example of Porter's five forces model:

Competitors in the industry: There are many competitors in China's electric vehicle industry, including domestic traditional automakers, emerging electric vehicle startups, and foreign electric vehicle brands. The competition between these competitors is very fierce, mainly reflected in product quality, technological innovation, price competition, marketing, channel construction, government subsidies and so on. Competitors in the industry pose a high threat to customers, who need to improve the differentiation of their products and services, as well as enhance their brand awareness and reputation.

Potential entrants: There are also many potential entrants in China's electric vehicle industry, including domestic Internet giants, foreign high-tech companies, and cross-border companies in other industries. These potential entrants have strong capital, technology, channels, users and other resources, which may impact and subvert China's electric vehicle industry. Potential entrants pose a high threat to customers, and customers need to pay close attention to the movements of these potential entrants and adjust their strategies and responses in a timely manner.

Alternatives: Alternatives to China's electric vehicle industry are mainly traditional fuel vehicles, public transportation, and shared travel services. These alternatives can meet the travel needs of some consumers, but they also have some limitations, such as environmental pollution, congestion, safety, and convenience. Substitutes pose a low threat to customers. Customers can use the advantages of electric vehicles, such as energy saving, environmental protection, intelligence, and comfort, to attract and retain consumers.

Suppliers: Suppliers in China's electric vehicle industry are mainly manufacturers of core components such as batteries, motors, electronic controls, and charging piles, as well as suppliers of production factors such as raw materials, equipment, manpower, and capital. These suppliers have strong bargaining power, because the quality, cost, and supply of their products and services directly affect the performance, price, and supply of electric vehicles. Suppliers pose a high threat to customers, and customers need to establish stable and long-term relationships and improve their supply chain management capabilities.

Buyers: The buyers of China's electric vehicle industry are mainly individual consumers, corporate customers, government agencies, etc. The bargaining power of these buyers is weak because of their large number, scattered distribution, diverse product selection and high conversion costs. The buyer's threat to the customer is low, and the customer can increase the buyer's loyalty and satisfaction by providing high-quality products and services and implementing effective marketing strategies.

In summary, the competitive environment in China's electric vehicle industry is complex and intense, with customers facing higher competitive pressures from competitors, potential entrants, suppliers, etc. in the industry, as well as lower competitive pressures from substitutes, buyers, etc. The customer's competitive strategy is recommended as follows:

In terms of products, customers should pay attention to product quality, performance, safety, innovation, etc., improve product differentiation and competitiveness, and meet the needs and preferences of different consumers.

In terms of price, customers should formulate reasonable pricing strategies according to different markets and target groups, considering not only cost and profit, but also market and competition, as well as consumer psychology and behavior.

In terms of channels, customers should establish a diversified channel system, including online and offline sales, service, charging and other channels, so as to improve the coverage and efficiency of channels and increase the convenience and experience of consumers.

In terms of marketing, customers should strengthen brand construction and promotion, improve brand awareness and reputation, shape brand image and personality, and cultivate brand loyalty and reputation.

In terms of cooperation, customers should establish good cooperative relations with suppliers, governments, industry associations, social organizations and other relevant parties, share resources, information, interests, etc., and achieve the goal of mutual benefit and win-win.

2. SWOT Analysis

SWOT analysis is a tool to analyze the internal strengths and weaknesses of an enterprise and external opportunities and threats. The model argues that a firm's competitiveness depends on its internal strengths and weaknesses, as well as external opportunities and threats. By analyzing these four elements, companies can understand their competitive situation and how to use advantages and opportunities to overcome disadvantages and threats and develop appropriate competitive strategies.

Advantage: refers to the superiority of an enterprise relative to its competitors in some aspects and is the source of its competitiveness. Advantages can include products, technologies, brands, channels, talents, culture, etc.

Disadvantage: refers to the deficiency of an enterprise relative to its competitors in some aspects, which is an obstacle to the competitiveness of the enterprise. Disadvantages can include cost, quality, innovation, service, management, etc.

Opportunity: refers to the factors that are conducive to the development of the enterprise in the external environment in which the enterprise is located, and is the competitive potential of the enterprise. Opportunities can include market, policy, technology, social, etc.

Threat: refers to the factors that are not conducive to the development of the enterprise in the external environment of the enterprise, which is the competitiveness risk of the enterprise. Threats can include competition, substitution, regulation, crisis, etc.

Through SWOT analysis, companies can fully understand their competitive situation from their own and external perspectives, and how to use advantages and opportunities to overcome disadvantages and threats, and develop appropriate competitive strategies.

Application example of SWOT analysis:

Advantages: The customer's advantage is that it has advanced electric vehicle technology, high quality products, strong brand influence, and rich international market experience.

Disadvantages: The disadvantages of customers are the lack of visibility, channels, partners, policy support, etc. in the Chinese market, as well as higher costs and risks.

Opportunities: The opportunities for customers are the huge demand and potential for electric vehicles in the Chinese market, the government's encouragement and support for new energy vehicles, and the recognition and trust of Chinese consumers for foreign brands.

Threat: the threat of customers is the fierce competition in China's electric vehicle industry, the large number, large scale and strong strength of competitors, as well as the differences and obstacles in the law, culture and consumption habits of the Chinese market.

To sum up, in the competitive environment of China's electric vehicle industry, customers have their own advantages and opportunities, as well as their own disadvantages and threats. The customer's competitive strategy is recommended as follows:

In terms of technology, customers should maintain their technological leadership, continue to develop and innovate, meet the special needs and standards of the Chinese market, and improve product performance and safety.

In terms of brand, customers should strengthen their brand building and promotion, improve their popularity and reputation in the Chinese market, shape their brand image and personality, and cultivate consumer loyalty and reputation.

In terms of channels, customers should find and establish suitable channel partners, expand their sales and service networks, improve their channel coverage and efficiency, and increase consumers' convenience and experience.

In terms of cooperation, customers should establish good cooperative relations with the government, industry associations, social organizations, media and other relevant parties, obtain support and help from policies, information, resources, etc., and achieve the goal of mutual benefit and win-win results.