Purpose of 1. Competitor Analysis

Competitor analysis refers to the collection, collation and analysis of the advantages and disadvantages, strategic intentions, market share, customer evaluation and other information of the same or similar products or services in the same market with itself or other enterprises, so as to understand its own position and situation in the market, find out its own advantages and disadvantages, and formulate corresponding development strategies and action plans.

The main purposes of competitor analysis are as follows:

(1) Understand the market environment. Through competitor analysis, companies can grasp the market size, growth rate, demand characteristics, consumer preferences and other basic information, as well as industry trends, policies and regulations, technological changes and other external factors, so as to determine market opportunities and threats.

(2) Assess your own strength. Through competitor analysis, companies can compare their own differences with other companies in terms of product quality, price levels, service quality, brand image, etc., as well as their advantages and disadvantages in terms of technological innovation capabilities, channel building capabilities, and marketing promotion capabilities, so as to determine Their own position and role in the market.

(3) Development strategy. Through competitor analysis, enterprises can formulate development goals and strategic directions suitable for their own characteristics and market needs according to the gap and advantages and disadvantages between themselves and other enterprises, and take corresponding measures to achieve their goals.

2. methods of competitor analysis

There are several main methods of competitor analysis:

(1)) Horizontal comparison method. Horizontal comparison method refers to the comparison of different types or different scales or different regions or different stages or different characteristics or different styles or different models or different combinations in the same industry or the same market segment, so as to reveal the similarities and differences between various types or scales or various regions or various stages or various characteristics or various styles or various models or various combinations.

(2) Vertical comparison method. The vertical comparison method refers to the comparison of the same type or the same scale or the same geographical area or the same stage or the same characteristic or the same style or the same model or the same combination to reveal the development and evolution of each type or scale or each geographical area or the same combination.

(3) Comprehensive comparison method. The comprehensive comparison method refers to the combination of horizontal comparison method and vertical comparison method, which is compared from multiple dimensions and angles to reveal the comprehensive differences and advantages and disadvantages between competitors.

(4)SWOT analysis. SWOT analysis refers to the systematic analysis of competitors' strengths (Strengths), weaknesses (Weaknesses), opportunities (Opportunities) and threats (Threats) to assess the overall strength and development prospects of competitors.

(5) Five forces analysis. The five-force analysis method refers to the analysis of the competitive pressure and influence faced by competitors from the five aspects of competitors, potential entrants, substitutes, suppliers and buyers within the industry to judge the attractiveness and degree of competition of the industry.

(6) Value chain analysis. Value chain analysis refers to the division of competitors' activities into primary and ancillary activities, and the analysis of the value created and costs consumed by competitors in each activity in order to identify the core competencies and value advantages of competitors.

Steps to 3. competitor analysis

The main steps of competitor analysis are as follows:

(1) Determine the object of analysis. The object of analysis refers to other enterprises that have a competitive relationship with the enterprise in the same market, which can usually be selected and classified according to the similarity of products or services, the proximity of market share, the consistency of strategic objectives and other criteria.

(2) Collection of analytical information. Analytical information refers to all kinds of data and information related to competitors, including the historical background, organizational structure, business conditions, product characteristics, price strategy, channel model, marketing means, technical level, financial situation, strategic intention, etc. of competitors, which can be collected through public and non-public channels.

(3) Analysis of the results. Analysis results refer to the collation, induction, comparison, evaluation and interpretation of the collected analysis information to reveal the strengths and weaknesses, strengths and weaknesses, opportunity threats, development trends, etc. of competitors, which can be analyzed using the above analysis methods.

(4) Formulate coping strategies. Coping strategy refers to the development of corresponding strategies and actions for competitors according to the analysis results, in order to improve their competitiveness and market share, and different strategies such as cooperation, competition, avoidance, imitation and innovation can be adopted.

Considerations 4. Competitor Analysis

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

(1) Clarify the purpose of the analysis. The purpose of analysis refers to the ultimate goal of a company's competitor analysis, and the scope, depth, frequency and focus of the analysis should be clarified according to the specific situation and needs of the company, so as to avoid blindly conducting too much or too little analysis.

(2) Select the appropriate analysis method. The analysis method refers to the specific tool for the competitor analysis of the enterprise, which should be selected according to the object, information, results and strategy of the analysis, and avoid the one-sided use of one or several analysis methods.

(3) Ensure the quality of analysis. The quality of analysis refers to the accuracy, validity and reliability of competitor analysis, should be through the establishment of a professional analysis team, the use of multiple sources of information, the use of scientific analysis techniques, regular analysis updates and other measures to ensure the quality of the analysis, to avoid errors or deviations.

(4) Pay attention to analytical ethics. Analytical ethics refers to the moral and legal norms of competitor analysis, should abide by trade secrets, intellectual property rights, personal privacy and other relevant laws and regulations, respect the legitimate rights and interests of competitors, and avoid taking improper means or behavior.

Case for 5. competitor analysis

To better illustrate the principles and norms of competitor analysis, we can refer to the following example:

Shangpu Consulting Company is a company specializing in corporate strategy consulting, mainly providing customers with market analysis, competitive analysis, strategic planning, organizational change, innovation management and other consulting services. Champ Consulting's main competitors are the following:

McKinsey & Company (McKinsey & Company): McKinsey & Company is the world's largest strategic consulting firm, with more than 150 offices in more than 100 countries and regions, providing consulting services to 90% of the world's largest enterprises. Its consulting fields cover various industries and functional sectors, and its consulting quality and reputation are world-renowned.

Boston Consulting Group (BostonConsultingGroup,BCG): Boston Consulting Group is one of the world's most well-known strategic consulting companies, with more than 90 offices in more than 90 countries and regions, providing consulting services to the world's largest enterprises and government agencies. Its consulting fields are mainly concentrated in strategy, innovation, organization and operation, and its consulting concepts and methods are innovative and influential.

Bain Consulting Company (Bain & Company): Bain Consulting Company is one of the most famous strategic consulting companies in the world, with more than 60 offices in more than 40 countries and regions, providing consulting services for the world's largest enterprises and private equity funds. Its consulting fields are mainly concentrated in strategy, organization, operation and mergers and acquisitions, and its consulting effect and customer satisfaction are very high.

The process and results of the Champ Consulting analysis are as follows:

(1) Determine the object of analysis. According to the customer's market share, product type, price range, target customer, etc., Shangpu Consulting has identified the following direct competitors:

Mercedes-Benz: German luxury car brand, known for its high quality, high performance, high-tech, and high-end. It has a strong brand influence and loyal customer base. It is one of the main competitors of customers.

BMW: Germany's luxury car brand, known for its sportiness, innovation, comfort and personalization, with a wide range of product lines and market coverage, is one of the main competitors of customers.

Audi: A German luxury car brand, known for its advanced technology, elegant design, safe performance, and stable quality. It has a balanced market performance and a good reputation. It is one of the main competitors for customers.

Toyota: Japan's automobile giant is famous for its reliable quality, energy-saving environmental protection, intelligent technology and reasonable price. It has a rich product range and global market network. It is one of the indirect competitors of customers.

Volkswagen: German automobile giant, famous for its classic design, practical functions, popular price and wide audience. It has multiple sub brands and market segments, and is one of the indirect competitors of customers.

(2) Collection of analytical information. Champ Consulting collects a variety of information about competitors through a variety of channels and methods, including:

Public sources: through the Internet, newspapers, magazines, advertising, exhibitions, reports, research, etc., to obtain the basic information of competitors, product introduction, price strategy, marketing activities, financial data, market share, customer evaluation, etc.

Secret sources: through secret purchases, secret visits, secret investigations, secret observations, secret tests, etc., to obtain competitors' product characteristics, service quality, channel layout, technical level, strategic intentions, etc.

Field investigation: by visiting competitors' factories, offices, sales points, customers, suppliers, partners, etc., to obtain competitors' organizational structure, management mode, human resources, production capacity, supply chain, cooperative relationship, etc.

(3) Analysis of the results. By using SWOT analysis, five-force analysis, value chain analysis, etc., Shangpu Consulting conducted a comprehensive analysis of the collected analysis information, and obtained the strengths and weaknesses, threats and opportunities, development trends and forecasts of competitors, as follows:

Competitor Advantage Disadvantage Threat Opportunity Development Trend Development Forecast

The Mercedes-Benz brand has strong influence, high product quality, strong technological innovation ability, high customer loyalty, high price, single product line, low market coverage, different service levels, the challenges of emerging luxury car brands, the restrictions of environmental protection laws and regulations, the diversification of consumer demand, the development of emerging markets, the development of new energy vehicles, the innovation of intelligent vehicles to maintain high-end positioning, strengthen technological innovation, expand the market share of new energy vehicles and intelligent vehicles, high profit margin, excellent brand image

BMW has a rich product line, wide market coverage, good sports performance, strong innovation ability, high customer satisfaction, high price, unstable product quality, different service level, unclear brand image, challenges of emerging luxury car brands, restrictions of environmental protection laws and regulations, diversification of consumer demand, development of emerging markets, development of new energy vehicles, innovation of intelligent vehicles, maintaining diversification strategy, and strengthening product quality, expand the market share of new energy vehicles and smart cars, with high profit margins and good brand image.

Audi's product design is elegant, the performance is safe, the quality is stable, the reputation is good, the market performance is balanced, the price is high, the product line is single, the innovation ability is weak, the brand image does not highlight the challenges of emerging luxury car brands, the restrictions of environmental protection laws and regulations, the diversification of consumer demand, the development of new energy vehicles, the innovation of intelligent vehicles, and the steady strategy of strengthening product design, expand the market share of new energy vehicles and smart cars, stable market share, medium profit margin, brand image.

Toyota has a wide range of products, reasonable prices, environmental protection and energy saving, scientific and technological intelligence, a wide market network, low product quality, low brand image, low competitiveness, low customer loyalty, competition from other automobile brands at home and abroad, consumer demand for high-end cars, the risk of technological change, the development of emerging markets, the development of new energy vehicles, the innovation of smart cars to maintain a diversified strategy to improve product quality and brand image, strengthen technological innovation market share decline, low profit margin, poor brand image

Volkswagen's product design is classic, the function is practical, the price is universal, the audience is wide, the sub-brand multi-product quality is not high, the brand image is low, the competitiveness is not strong, the customer loyalty is low, the competition of other automobile brands at home and abroad, the consumer's demand for high-end cars, the risk of technological change, the development of emerging markets, the development of new energy vehicles, the innovation of smart cars to maintain a diversified strategy, improve product quality, improve brand image, strengthen technological innovation market share decline, low profit margin, poor brand image

(4) Formulate coping strategies. Based on the results of the analysis, Champu Consulting has developed the following strategies for its clients:

For direct competitors such as Mercedes-Benz, BMW, and Audi, adopt defensive strategies to maintain their own product quality, price levels, service quality, brand image, etc., consolidate their own market share and profit margins, and at the same time strengthen technological innovation and expand new energy vehicles. In the smart car market, seize the opportunities of competitors and reduce the threat of competitors.

Aiming at indirect competitors such as Toyota and Volkswagen, adopt attack strategies to highlight their own product advantages, price advantages, service advantages, brand advantages, etc., expand their own market share and profit margins, and at the same time strengthen technological innovation to expand new energy vehicles and smart cars. In the market, seize the opportunities of competitors and reduce the threats of competitors.