Definition of 1. Competitor Analysis

Competitor analysis is the process by which an enterprise systematically collects, organizes, analyzes, and evaluates the strategies, resources, capabilities, strengths, weaknesses, goals, motivations, assumptions, and behaviors of its existing or potential competitors. The purpose of competitor analysis is to help companies understand their relative position in the market, as well as the strengths and weaknesses of competitors, so as to develop effective competitive strategies.

The object of competitor analysis includes not only direct competitors, that is, enterprises that compete with enterprises in the same market or the same product category, but also indirect competitors, that is, enterprises that compete with enterprises in different markets or different product categories, and potential competitors, that is, enterprises that are likely to enter the market or product category in which the enterprise is located. The scope of competitor analysis is not limited to the current situation of competitors, but also takes into account the historical background, future development and possible changes of competitors.

Purpose of 2. Competitor Analysis

The main purpose of competitor analysis is to help companies develop effective competitive strategies to gain an advantage in the market. Specifically, competitor analysis can help companies achieve the following objectives:

Know your strengths and weaknesses. By comparing the differences between themselves and their competitors in terms of strategy, resources, and capabilities, companies can clearly recognize their strengths and weaknesses in the market, so as to give play to their strengths, make up for their weaknesses, and improve their competitiveness.

Predict the behavior of competitors. By analyzing the objectives, motivations, assumptions and behaviors of competitors, enterprises can infer the strategic intentions and possible actions of competitors, so as to make countermeasures in advance, avoid passive coping and seize the opportunity.

Discover the weaknesses and opportunities of competitors. By assessing the strengths and weaknesses of competitors, companies can discover the weaknesses and vulnerabilities of competitors, as well as the opportunities and spaces they can exploit, so as to develop targeted attack or defense strategies to increase their market share and profits.

Learn the strengths and experiences of your competitors. By drawing on the advantages and experience of competitors, enterprises can learn and absorb the success of competitors, so as to improve their own strategy, products, services, technology and other aspects, improve their innovation ability and competitiveness.

3. methods of competitor analysis

There are several main methods of competitor analysis:

SWOT analysis. SWOT analysis is a commonly used strategic analysis tool that helps companies analyze their strengths (Strengths), weaknesses (Weaknesses), opportunities (Opportunities) and threats (Threats) and those of their competitors in order to develop appropriate strategies. The advantage of SWOT analysis is that it is easy to use and can be analyzed from multiple perspectives; the disadvantage is that it is more subjective and may overlook some important factors.

Five forces analysis method. The five forces analysis method is a strategic analysis tool proposed by Michael Porter, which can help enterprises analyze the competitive environment of their industry, including the five forces of competitors, potential entrants, substitutes, suppliers and buyers in the industry, so as to formulate appropriate strategies. The advantage of the five forces analysis is that it is comprehensive and in-depth, which can reveal the nature and structure of the industry; the disadvantage is that it is more complex and may ignore some dynamic changes.

Competitive intelligence analysis. Competitive intelligence analysis is a strategic analysis tool based on information collection and processing, which can help enterprises to obtain, analyze and use all kinds of information about competitors, so as to formulate appropriate strategies. The advantage of competitive intelligence analysis is that it is effective in real time and can provide valuable insights and predictions; the disadvantage is that it is time-consuming and may have incomplete and inaccurate information.

Steps to 4. competitor analysis

The general steps for competitor analysis are as follows:

Determine the scope and type of competitors. According to the market positioning and objectives of the enterprise, determine the scope and type of competitors to be analyzed, including direct competitors, indirect competitors and potential competitors, as well as the size, region, product and other characteristics of competitors.

Collect competitor information. Use a variety of channels and methods to collect information about competitors, including their strategies, resources, capabilities, strengths, weaknesses, goals, motivations, assumptions, and behaviors, as well as their history, current status, and future.

Analyze competitor information. Use a variety of tools and techniques to systematically analyze the collected information of competitors, including competitor's strategic analysis, resource analysis, capability analysis, strengths and weaknesses analysis, target analysis, motivation analysis, hypothesis analysis and behavior analysis, so as to reveal the characteristics, strengths, weaknesses, intentions and possible actions of competitors.

Evaluate competitor information. Based on the results of the analysis, a comprehensive assessment of competitors' information, including competitors' strengths, weaknesses, opportunities, threats, influences and trends, is made to determine competitors' competitiveness and competitive posture.

Develop a competitive strategy. Based on the results of the assessment, develop a competitive strategy that suits you, including competitive advantage, competitive objectives, competitive action and competitive control, so as to gain an advantage in the market.

Case for 5. competitor analysis

In order to better demonstrate the practical value and application effect of competitor analysis, this paper will be combined with the specific case of competitor analysis services provided by Shangpu Consulting Company to customers, to explain and analyze.

Shangpu Consulting is a professional strategic consulting company, providing a full range of strategic management services to clients in various industries, including market analysis, competitor analysis, strategic planning, strategic execution and strategic evaluation. One of the core businesses of Champu Consulting's competitor analysis services is to help clients understand the strategic situation of themselves and their competitors in order to develop effective competitive strategies.

Here's an example of a competitor analysis service provided by Champ Consulting for an automaker:

Customer background: This customer is a medium-sized automobile manufacturer, mainly producing and selling low-end automobile products, and the main markets are China and Southeast Asia. The customer faces fierce competition from home and abroad, especially from competitors in Japan and South Korea, as well as emerging competitors in electric vehicles and autonomous vehicles. The customer wants to understand the strategic situation of himself and his competitors through competitor analysis, so as to formulate an effective competitive strategy.

Competitor analysis process: Champu Consulting conducted a competitor analysis for the client in the following steps:

Determine the scope and type of competitors. According to the customer's market positioning and objectives, Shangpu Consulting has determined the scope and types of competitors that need to be analyzed, including the following categories:

Direct competitors: Automakers that compete with customers in the same market or in the same product category, such as Toyota, Honda, and Nissan in Japan, Hyundai and Kia in South Korea, and Geely, Changan, and BYD in China.

Indirect competitors: Automakers that compete with customers in different markets or different product categories, such as Ford, General Motors, Tesla in the United States, Volkswagen, Mercedes-Benz, BMW in Germany, Peugeot, Renault in France, etc.

Potential competitors: Automakers that may enter the market or product category of the customer, such as Google, Apple, Alibaba, etc.

Collect competitor information. Using a variety of channels and methods, Shangpu Consulting collects information about competitors, including information about competitors' strategies, resources, capabilities, strengths, weaknesses, goals, motivations, assumptions, and behaviors, as well as information about competitors' history, current situation, and future. Sources of information collected include competitors' official websites, annual reports, news reports, social media, professional magazines, industry reports, market research, expert interviews, customer feedback, etc.

Analyze competitor information. Shangpu Consulting Company uses SWOT analysis method, five force analysis method and competitive intelligence analysis method to systematically analyze the collected competitor information, including competitor's strategic analysis, resource analysis, ability analysis, advantage and disadvantage analysis, target analysis, motivation analysis, hypothesis analysis and behavior analysis, so as to reveal the competitor's characteristics, advantages, disadvantages, intentions and possible actions. The results of the analysis are as follows:

Competitor Characteristics Advantage Disadvantage Intention Move

Toyota, the world's largest automaker, is known for quality and reliability, with multiple brands and product lines, mainly in the United States and Japan, but also has a large market share in China and Southeast Asia. It has strong brand influence, technological innovation ability, production efficiency and cost control ability, as well as extensive sales network and customer loyalty. In the low-end market, the competitiveness is weak, the product design is more conservative, and it is more sensitive to exchange rate fluctuations and trade barriers. Maintain global leadership, increase market share in China and Southeast Asia, and accelerate R & D and investment in electric vehicles and autonomous vehicles. Launch more mid-to-low-end products that meet the needs of the Chinese and Southeast Asian markets, strengthen cooperation with local partners, and increase patent applications and market promotion in the field of electric vehicles and autonomous vehicles.

Honda, the world's third-largest automaker, is known for its technology and performance, with multiple brands and product lines. Its main markets are the United States and Japan, and it also has a large market share in China and Southeast Asia. It has strong technological innovation ability, product design ability, brand influence and customer loyalty, as well as diversified product portfolio and market coverage. In the low-end market, the competitiveness is weak, the product price is higher, and it is more sensitive to environmental pollution and energy consumption. Maintain leading edge in technology and performance, increase market share in China and Southeast Asia, and accelerate R & D and investment in electric vehicles and autonomous vehicles. Launch more mid-to-low-end products that meet the needs of the Chinese and Southeast Asian markets, strengthen cooperation with local partners, and increase patent applications and market promotion in the field of electric vehicles and autonomous vehicles.

Nissan, the world's sixth largest automaker, is known for innovation and diversification, with multiple brands and product lines, mainly in the United States and Japan, but also has a large market share in China and Southeast Asia. It has strong innovation ability, product diversification ability, market development ability and partnership, as well as high brand awareness and customer satisfaction. It is less competitive in the low-end market, with lower product quality and reliability, and more sensitive to management and financial issues. Rebuild the brand image, increase market share in China and Southeast Asia, and accelerate R & D and investment in electric vehicles and autonomous vehicles. Launch more mid-to-low-end products that meet the needs of the Chinese and Southeast Asian markets, strengthen cooperation with local partners, and increase patent applications and market promotion in the field of electric vehicles and autonomous vehicles.

Hyundai South Korea's largest automaker, known for price and design, has multiple brands and product lines, mainly in the United States and South Korea, but also has a large market share in China and Southeast Asia. It has strong price competitiveness, design innovation ability, market adaptability and rapid response ability, as well as high brand awareness and customer satisfaction. The competitiveness in the high-end market is weak, the product technology and performance are low, and it is more sensitive to the cost of raw materials and energy. Enhance brand image, increase market share in China and Southeast Asia, and accelerate R & D and investment in electric vehicles and autonomous vehicles. Launch more mid-to-low-end products that meet the needs of the Chinese and Southeast Asian markets, strengthen cooperation with local partners, and increase patent applications and market promotion in the field of electric vehicles and autonomous vehicles.

Kia, South Korea the second largest automaker, is known for its price and design, with multiple brands and product lines. Its main markets are the United States and South Korea, and it also has a large market share in China and Southeast Asia. It has strong price competitiveness, design innovation ability, market adaptability and rapid response ability, as well as high brand awareness and customer satisfaction. The competitiveness in the high-end market is weak, the product technology and performance are low, and it is more sensitive to the cost of raw materials and energy. Enhance brand image, increase market share in China and Southeast Asia, and accelerate R & D and investment in electric vehicles and autonomous vehicles. Launch more mid-to-low-end products that meet the needs of the Chinese and Southeast Asian markets, strengthen cooperation with local partners, and increase patent applications and market promotion in the field of electric vehicles and autonomous vehicles.

Geely, the largest private car manufacturer in China, has a number of brands and product lines, the main market is China, but also has a large market share in Southeast Asia. It has strong price competitiveness, innovation ability, market expansion ability and partnership, as well as high brand awareness and customer satisfaction. The competitiveness in the high-end market is weak, the product quality and reliability are low, and it is more sensitive to changes in policy and environment. Enhance brand image, increase market share in China and Southeast Asia, and accelerate R & D and investment in electric vehicles and autonomous vehicles.

Evaluate competitor information. Based on the results of the analysis, Champ Consulting conducted a comprehensive assessment of competitor information, including competitor strength, weaknesses, opportunities, threats, impacts and trends, to determine the competitiveness and competitive posture of the competitor. The results of the evaluation are as follows:

Competitor Strength Weakness Opportunity Threat Impact Trend

Toyota Senior high school Senior high school high rise

Honda Senior high school Senior high school rise high

Nissan Mid Mid Mid Mid Smooth

Hyundai Mid Mid Mid Mid Smooth

KIA Medium Medium Medium Medium Smooth

Geely medium high and low medium rise

Develop a competitive strategy. Based on the results of the assessment, Shangpu Consulting has developed a competitive strategy for its clients, including competitive advantage, competitive objectives, competitive action and competitive control, in order to gain an advantage in the market. The competitive strategy developed is as follows:

Competitive advantage: The customer's competitive advantage is to provide reasonable prices, reliable quality, and novel design automotive products in the low-end market to meet the needs of the Chinese and Southeast Asian markets, and at the same time use their own innovation capabilities to actively develop electric vehicles and self-driving vehicles. Seize future market opportunities.

Competitive objectives: The customer's competitive objectives are to maintain or increase their market share in the low-end market, increase their brand awareness and customer loyalty, improve their competitiveness in the high-end market, increase their profit margins, and achieve breakthroughs and leadership in the field of electric vehicles and autonomous vehicles.

Competitive action: the customer's competitive action includes the following aspects:

Products: Customers should continue to improve the quality and reliability of their products, provide more product types and functions that meet market demand, increase their product innovation capabilities, develop more electric vehicles and self-driving vehicles, and improve their product technology And performance.

Price: customers should continue to maintain their own price competitiveness, according to different markets and customers, develop a reasonable price strategy, while using their own cost control ability, reduce their own production and operating costs, improve their profit margins.

Promotion: customers should strengthen their own brand promotion and marketing, improve their brand awareness and customer loyalty, use various channels and methods to increase their market coverage and customer base, and at the same time use their own partnerships to carry out more Joint marketing and cross-border cooperation to expand their market influence.

In terms of service: customers should improve their service quality and level, provide more pre-sale, sale and after-sales services, meet the different needs and expectations of customers, and use their rapid response capabilities to solve customer problems and complaints in a timely manner. Improve customer satisfaction and loyalty.

Competitive control: The customer's competitive control includes the following aspects:

Monitoring: customers should establish and improve their own competitive intelligence system, regularly collect and analyze information about themselves and their competitors, keep abreast of changes in the market and the dynamics of competitors, assess their competitiveness and competitive situation, and discover their strengths and weaknesses, as well as opportunities and threats.

Adjustment: customers should adjust their competitive strategies in time according to the monitoring results, optimize their products, prices, promotions and services, enhance their competitive advantages, seize market opportunities, deal with the threat of competitors, and improve their competitive effect.

Evaluation: Customers should regularly evaluate the implementation and effectiveness of their competitive strategies, use various indicators and methods to measure their market share, brand awareness, customer loyalty, profit margin, technical level, etc., analyze their competitive results and problems, and summarize their own competitive experience and lessons.

Conclusions 6. Competitor Analysis

Through the analysis and evaluation of customers and competitors, Champ Consulting has made the following conclusions and recommendations for customers:

The automobile manufacturing industry in which the customer is located is a highly competitive industry, with many competitors, strong competitiveness, complex competitive situation, diverse forms of competition, diversified competitive factors, rapid changes in competition, and high competitive risks.

Customers have a certain competitive advantage in the low-end market, but in the high-end market and emerging market competitiveness is weak, facing fierce competitive pressure from home and abroad, need to strengthen their competitive strategy, improve their competitiveness and competitive effect.

Customers should make full use of their advantages in price, quality, design and innovation to meet the needs of the Chinese and Southeast Asian markets, maintain or increase their market share in the low-end market, and actively develop emerging markets such as electric vehicles and autonomous vehicles. Market, enhance their competitiveness in the high-end market, and increase their profit margins.

Customers should strengthen their own brand promotion and marketing, improve their brand awareness and customer loyalty, and at the same time strengthen cooperation with local partners, expand their market coverage and customer base, and increase their market influence.