Definition and significance of 1. competitor analysis

Competitor analysis refers to the process of systematic collection, collation, analysis and evaluation of the industry environment, market conditions, competitors' characteristics, strategies, behaviors, advantages and disadvantages, etc. The purpose of competitor analysis is to understand the competitive situation, predict competitive trends, formulate effective competitive strategies, and improve the competitive advantage of enterprises.

Competitor analysis is of great significance to the strategic transformation of enterprises. Strategic transformation refers to the fundamental adjustment and change of business philosophy, development goals, business scope, organizational structure and resource allocation in the face of market changes and competitive pressure, so as to adapt to the new market demand and competitive environment. Strategic transformation is an active, innovative, risky and complex strategic choice, which requires a comprehensive analysis of the internal and external environment of the enterprise to determine the necessity, feasibility and direction of the transformation. Competitor analysis is an important part of an enterprise's analysis of the external environment, which can help enterprises:

Understand their own strengths and weaknesses, clear transformation of the power and pressure;

Identify the strategic intentions and actions of competitors, and predict the reaction and impact of competitors;

Look for the weaknesses and opportunities of competitors, and determine the goal and path of transformation;

Develop differentiated and innovative transformation strategies to improve the effectiveness and efficiency of transformation.

Methods and procedures for 2. competitor analysis

Competitor analysis is a systematic, dynamic and continuous process that requires the use of a variety of methods and tools and follows certain steps. In general, the methods and steps of competitor analysis include the following:

Identify competitors. A competitor is an enterprise that provides the same or similar products or services in the same market or market segment, meets the same or similar customer needs, and has the same or similar competitive objectives and strategies. Competitors can be identified in a variety of ways, e.g., based on product or service alternatives, customer perceptions or preferences, market structure or share, etc. The purpose of identifying competitors is to narrow the scope of analysis and select the most important competitors for in-depth analysis.

Collect competitor information. Competitor information refers to all kinds of data, facts, opinions, evaluations, etc. related to competitors, including the history, current situation, future and other aspects of competitors. There are many ways to collect information about competitors, for example, using public information sources, such as official websites, annual reports, news, social media, etc.; using private information sources, such as insiders, partners, customers, suppliers, etc.; Using professional information sources, such as industry associations, consulting agencies, research institutions, etc. The purpose of collecting competitor information is to obtain as comprehensive, accurate, timely and effective information as possible to provide a basis for analysis and evaluation.

Analyze the competitor's strategy. A competitor's strategy is the overall program and action plan that a competitor takes to achieve its competitive objectives, including the competitor's vision, mission, objectives, core values, competitive advantages, and competitive models. There are many ways to analyze a competitor's strategy, for example, using tools such as strategy maps, strategy pyramids, and strategy canvases to reveal the strategic logic, content, and characteristics of competitors from different angles and levels. The purpose of analyzing a competitor's strategy is to understand the competitor's strategic intent, direction, focus, advantages, etc., and to provide a reference for formulating its own strategy.

Evaluate the strength of competitors. Competitor strength refers to the comprehensive ability and level of competitors in all aspects, including competitors' financial status, market position, product quality, technical level, innovation ability, brand image, customer satisfaction, organizational efficiency, talent structure, etc. There are many ways to evaluate the strength of competitors, for example, using financial analysis, market analysis, product analysis, technical analysis, innovation analysis, brand analysis, customer analysis, organizational analysis, talent analysis and other methods, from different dimensions and indicators, quantitative or qualitative evaluation of the strength of competitors. The purpose of evaluating the strength of competitors is to identify the strengths and weaknesses of competitors and to provide a basis for formulating their own advantages.

Predict the behavior of competitors. Competitor behavior refers to the specific actions and measures taken by competitors to achieve their strategic objectives, including market entry, product development, price adjustment, promotional activities, cooperative alliances, mergers and acquisitions, etc. There are many ways to predict the behavior of competitors, for example, using game theory, scenario analysis, simulation exercises and other methods to speculate on the possible behavior and reactions of competitors from different angles and situations. The purpose of predicting the behavior of competitors is to prepare in advance, seize the opportunity, avoid passivity, and enhance initiative.

Compare the differences of competitors. Competitor differences refer to the differences and gaps between competitors in various aspects, including differences in competitors' strategies, strengths, and behaviors. There are many ways to compare the differences of competitors, for example, using Porter's five forces model, Boston matrix, value chain analysis and other methods, from different angles and levels, to compare the differences of competitors. The purpose of comparing the differences between competitors is to find out their own relative advantages and disadvantages, formulate differentiated competitive strategies, and enhance competitive advantage.

Applications and Cases 3. Competitor Analysis

The results of competitor analysis can provide valuable guidance and suggestions for the strategic transformation of enterprises. According to the results of competitor analysis, enterprises can formulate appropriate transformation goals, paths and measures to achieve the improvement and sustainability of competitive advantage. The following are some specific cases of competitor analysis conducted by Champ Consulting for its service customers:

Case 1: The strategic transformation of a home appliance company. The company is one of the largest home appliance production and sales companies in China, facing problems such as saturation of the domestic market, intensified competition, and declining profits. The company decided to make a strategic transformation to seek new growth points and competitive advantages. Champ Consulting conducted a competitor analysis for the company and found that its main competitors had the following characteristics:

Competitor's strategy: Competitor's strategy is mainly based on product innovation and brand building as the core, to improve the added value of products and market awareness, as well as internationalization and diversification as the direction, to expand overseas markets and emerging markets, and social responsibility and sustainable development as the orientation, in order to enhance the image and reputation of the enterprise.

Competitor's strength: Competitor's strength is mainly manifested in the following aspects: stable financial situation, high market share, excellent product quality, high technical level, strong innovation ability, good brand image, high customer satisfaction, high organizational efficiency, and talent structure Excellent.

Competitor's behavior: Competitor's behavior is mainly manifested in the following aspects: frequent introduction of new products and new technologies, continuous improvement of product performance and functions, and large-scale advertising and promotional activities, increase brand exposure and influence, and Actively explore overseas markets and emerging markets, establish strategic alliances with local partners, and actively fulfill social responsibilities and environmental protection obligations, and participate in public welfare activities and environmental protection projects.

Competitor's differences: Competitor's differences are mainly manifested in the following aspects: the competitor's ability and level of product innovation and brand building are higher than that of the enterprise, the competitor's degree and speed of internationalization and diversification are faster than that of the enterprise, and the competitor's awareness and actions of social responsibility and sustainable development are stronger than that of the enterprise.

Based on the results of the competitor analysis, Champ Consulting made the following strategic transformation recommendations for the company:

Transformation goal: the transformation goal of the enterprise is to become a home appliance enterprise with smart home as the core, customer experience as the guidance, globalization as the vision, and green environmental protection as the responsibility.

Transformation path: The transformation path of the company is achieved through the following aspects: First, strengthen product innovation and technology research and development, develop intelligent, Internet-based, and personalized home appliances, and improve the level of product intelligence and customer experience; The second is to strengthen brand building and marketing promotion, create the brand image and reputation of smart homes, and increase brand awareness and loyalty; the third is to accelerate the pace of internationalization and diversification, enter more overseas markets and emerging markets to expand product coverage and market share; the fourth is to strengthen the fulfillment of social responsibility and environmental protection obligations, produce more energy-saving, environmentally friendly and safe home appliances, and participate in more public welfare activities and environmental protection projects, Enhance the image and reputation of the company.

Transformation measures: the transformation measures of the enterprise are implemented through the following aspects: first, increase the investment in product innovation and technology research and development, establish professional R & D teams and laboratories, cooperate with universities and scientific research institutions, introduce advanced technology and equipment, speed up product research and development and listing; second, optimize the strategy of brand building and marketing promotion, and formulate unified brand positioning and communication, use a variety of media and channels to carry out targeted advertising and promotional activities, increase interaction and communication with customers, and enhance the influence and attractiveness of the brand; the third is to improve the international and diversified mechanism, establish a global sales and service network, establish stable strategic alliances with local partners, understand local market needs and cultural characteristics, provide suitable products and services, and enhance market satisfaction and loyalty; the fourth is to strengthen the awareness of social responsibility and environmental protection obligations, formulate strict quality and safety standards, adopt more energy-saving, environmentally friendly, and safe raw materials and processes, reduce product energy consumption and emissions, improve product efficiency and life, and participate in more Public welfare activities and environmental protection projects demonstrate the responsibility and responsibility of enterprises.

Case 2: Strategic Transformation of an Internet Enterprise.

Competitor's strategy: Competitor's strategy is mainly user-centric, content-centric, social-connected, data-driven, innovation-driven, diversification-oriented, to create an all-round Internet ecosystem as the goal.

Competitor's strength: Competitor's strength is mainly manifested in the following aspects: good financial status, high market share, large user scale, high content quality, strong social network, data analysis ability, strong innovation ability, and high degree of diversification.

Competitor's behavior: Competitor's behavior is mainly manifested in the following aspects: continuously enriching and optimizing users' products and services, improving users' experience and satisfaction, and producing and distributing a large amount of content, increasing users' stickiness and activity, and actively expanding social networks and platforms, increasing users' interaction and sharing, and using technologies such as big data and artificial intelligence, to carry out accurate user portraits and recommend, enhance the transformation and retention of users, as well as continuous innovation and experimentation, develop new products and businesses, enter new markets and fields, and carry out diversified investment and cooperation, establish strategic alliances with partners from all walks of life, and share resources and interests.

Competitor's differences: Competitor's differences are mainly manifested in the following aspects: the competitor's user-oriented and content-oriented capabilities and levels are higher than that of the enterprise, the competitor's social network and platform are higher in scale and influence than that of the enterprise, the competitor's data-driven and innovation-driven capabilities and levels are higher than that of the enterprise, and the competitor's degree and speed of diversification are higher than that of the enterprise.