1. identify competitor scope

The scope of competitors refers to other enterprises that have direct or indirect competition with the enterprise in the same market or industry. The purpose of determining the scope of competitors is to narrow the scope of research and avoid ineffective information collection and analysis. There are several ways to determine the scope of competitors:

According to the similarity of products or services, direct competitors and indirect competitors are divided. Direct competitors are businesses that provide the same or similar products or services, such as Coca-Cola and Pepsi, and indirect competitors are businesses that provide different but alternative or meet the same needs, such as Coca-Cola and coffee.

According to the division of the market, divide the main competitors and secondary competitors. Primary competitors are companies that have a high market share and influence with the company in the same market or the same market segment, such as Huawei and Apple; secondary competitors are companies that have a low market share and influence with the company in the same market or the same market segment, such as Huawei and Xiaomi.

According to the division of the strategy, divide the existing competitors and potential competitors. Existing competitors refer to companies that have already entered the market or industry, such as Huawei and Apple; potential competitors refer to companies that may enter the market or industry, such as Apple and Tesla.

In the case of Shangpu Consulting, which is mainly engaged in market research, investment and financing consulting, IPO listing consulting and other businesses, the scope of its competitors can be divided according to the above method as follows:

Direct competitors: companies that provide the same or similar consulting services, such as Analysys Consulting, Huasheng Consulting, Zero Research, etc.

Indirect competitors: Companies that provide different products or services that can replace or meet the same needs, such as accounting firms, law firms, evaluation agencies, etc.

Main competitors: In the consulting industry, companies that have a high market share and influence with Shangpu Consulting, such as McKinsey, Bain, Boston and other internationally renowned consulting companies, as well as leading domestic consulting companies such as Huasheng Consulting and Analysys Consulting.

Secondary competitors: In the consulting industry, companies that have a lower market share and influence with Shangpu Consulting, such as domestic small and medium-sized consulting companies such as Zero Research, iResearch Consulting, and Sadie Consulting.

Existing competitors: companies that already have a certain track record and reputation in the consulting industry, such as the various consulting firms mentioned above.

Potential competitors: companies that may enter the consulting industry, such as large Internet companies, financial institutions, university research institutions, etc.

2. collection of competitor information

Competitor information refers to a variety of data, facts, opinions, evaluations, etc. related to competitors, including the basic situation of competitors, strategic direction, business mix, product characteristics, price strategy, channel layout, promotion methods, financial status, customer satisfaction, market share, competitive advantage, development trends, etc. The purpose of collecting competitor information is to obtain a comprehensive and accurate portrait of the competitor and provide a sufficient basis for subsequent analysis and evaluation. There are several ways to collect competitor information:

Obtain public information about competitors through public channels, such as competitors' official websites, social media, news reports, industry reports, business databases, government announcements, patent applications, trademark registrations, etc.

Obtain confidential information about competitors through secret channels, such as competitors' insiders, suppliers, distributors, customers, partners, industry experts, consulting agencies, etc.

Through direct observation, such as visiting competitors' stores, factories, exhibitions, activities, etc., or purchasing competitors' products or services, experience competitors' quality, functions, services, etc., to obtain competitors' on-site information.

In the case of Champ Consulting, it can collect competitor information in the following ways:

Through public channels, such as competitors' official websites, WeChat public numbers, Sina Weibo, Zhihu columns, etc., obtain competitors' company profiles, business scope, service cases, team introductions, honorary qualifications, industry views, customer evaluations and other information.

Obtain information about competitors' internal management, talent flow, project progress, performance changes, development plans, customer relationships, and cooperation intentions through back-to-back channels, such as competitors' former or current employees, customers, and partners.

Through direct observation, such as participating in seminars, forums, training and other activities held by competitors, or consulting the service content, price, process, effect, etc. of competitors as potential customers, obtain information on the quality, function and service of competitors' products or services.

3. analysis of competitor information

Competitor information analysis refers to the process of collating, summarizing, comparing, classifying, interpreting and evaluating the collected competitor information in order to reveal the characteristics and laws of the competitor's strategy, capabilities, strengths, weaknesses, dynamics and expectations. The purpose of analyzing competitor information is to gain insight into the strength and condition of competitors and to provide a basis for subsequent assessments and forecasts. There are several ways to analyze competitor information:

SWOT Analysis: SWOT analysis refers to a method of analyzing a competitor's strengths (Strengths), weaknesses (Weaknesses), opportunities (Opportunities) and threats (Threats) to assess the competitor's internal conditions and external environment in order to determine the competitor's strategic positioning and development direction.

Five forces analysis method: five forces analysis method refers to the five basic forces of the industry in which competitors are located, namely, the degree of competition of existing competitors, the entry barriers of potential competitors, the substitution threat of substitutes, the bargaining power of suppliers and the bargaining power of customers, so as to evaluate the competitive pressure and profitability faced by competitors, So as to determine the competitive advantages and disadvantages of competitors.

Competition map method: Competition map method refers to the method of analysis based on the relative position and relative relationship of competitors in the market to form a two-dimensional or multi-dimensional coordinate system, and locate and classify competitors according to different attributes or indicators, so as to determine the market share and market structure of competitors, as well as the mutual influence and interaction between competitors.

In the case of Champ Consulting, for example, it can analyze competitor information in the following ways:

SWOT analysis: Take Huasheng Consulting as an example, its SWOT analysis is as follows:

Advantages and Disadvantages

-Focus on the Internet industry, with rich industry experience and resources
-There are a number of self-developed data analysis and intelligent tools to improve service efficiency and quality
-Stable customer base and good reputation, including Alibaba, Tencent, Baidu and other well-known enterprises-narrow business scope, lack of cross-industry vision and ability
-Talent structure is single, lack of diversified professional background and way of thinking
-The high price of services makes it difficult to attract the demand of small and medium-sized enterprises

Opportunity threat

-The Internet industry continues to develop, and the demand for consulting continues to grow.
-Emerging areas such as artificial intelligence, blockchain, Internet of Things, etc. provide new consulting opportunities
-Internationalization strategy enhances brand influence and market expansion capabilities-Internationally renowned consulting companies increase investment and competition in the Internet industry
-New competitors have emerged within the industry, such as Analysys Consulting, Zero Research, etc.
-The needs and expectations of customers are getting higher and higher, which puts forward higher requirements for the quality and effectiveness of consulting services

Five Forces Analysis: Taking the consulting industry as an example, its five forces analysis is as follows:

The degree of competition of existing competitors The entry barriers of potential competitors The substitution threat of substitutes The bargaining power of suppliers The bargaining power of customers.

-The consulting industry is highly competitive, with a large number of competitors and diverse ways of competition
-The degree of differentiation in the consulting industry is low, and the service content, quality and price of competitors are not much different.
-The market growth rate of the consulting industry is low, and the competition between competitors is more intense-The entry barrier of the consulting industry is high, which requires professional knowledge, skills, experience, resources, etc.
-The policies and regulations of the consulting industry are strict and require corresponding qualifications, permits, certifications, etc.
-The consulting industry has a strong brand effect and needs to have a good reputation, reputation, customer relationship, etc.-The threat of substitution in the consulting industry is low, and there is no product or service that can completely replace the consulting service
-The customer loyalty in the consulting industry is high, and the customer's demand and dependence on consulting services are strong.
-The switching cost of the consulting industry is higher, and customers are more inclined to maintain the cooperative relationship with the existing consulting company-The suppliers in the consulting industry are mainly consultants, and their bargaining power is low
-The number of suppliers in the consulting industry is large, and consulting companies can recruit or train consultants from multiple sources.
-The replacement cost of suppliers in the consulting industry is low, and the consulting company can adjust or replace the consulting personnel according to the needs of the project-The customers in the consulting industry are mainly enterprises, and their bargaining power is high
-The number of customers in the consulting industry is small, and consulting companies need to establish long-term cooperative relations with customers.
-The needs of customers in the consulting industry are diverse, and consulting companies need to provide customized consulting services according to their needs.

Competition Map Law:

It can be seen from the competition map that Shangpu Consulting has a low market share and a wide range of business in the consulting industry. The main competitors are domestic small and medium-sized consulting companies, such as Horizon Research, iResearch Consulting, CCID Consulting, etc. Internationally renowned consulting companies and domestic leading consulting companies are in the leading positions with high market share and wide business scope. The degree of competition with Shangpu Consulting is low, but it cannot be ignored.

4. Evaluate Competitor Strengths and Weaknesses

Competitor strengths and weaknesses assessment refers to the process of comprehensive evaluation and comparison of competitors' strategies, capabilities, strengths, weaknesses, dynamics and expectations based on the analysis of competitor information. The purpose of assessing the strengths and weaknesses of competitors is to identify the strengths and weaknesses of competitors, as well as their gaps and strengths, and to provide a reference for subsequent forecasting and formulation.

5. predict competition for manual direction and reaction.

Competition to manual direction and reaction prediction refers to the process of inferring and anticipating the future behavior and strategy of a competitor based on the evaluation of the competitor's strengths and weaknesses.

The purpose of predicting competition to manual direction and reaction is to respond and prepare in advance to preempt or avoid passivity. There are several ways to predict the direction and response of a competitive pair:

Scenario analysis: Scenario analysis refers to the method of constructing different scenarios and analyzing the actions and strategies that competitors may take under different scenarios according to their objectives, motivations, resources, capabilities, strategies, etc., in order to assess the likelihood and influence of competitors and formulate corresponding countermeasures.

Game theory method: Game theory method refers to the method of constructing a game model according to the interests, choices, behaviors, results, etc. of competitors and their own, analyzing the optimal strategies and equilibrium points of competitors and themselves, so as to evaluate the rationality and reaction of competitors, so as to formulate corresponding strategy adjustments.

Simulation exercise method: Simulation exercise method refers to the method of simulating the role of competitors according to the characteristics and behavior of competitors, making simulation decisions and simulating execution, in order to evaluate the thinking and actions of competitors, so as to formulate corresponding response plans.

6. development of competitive strategy

Competitive strategy refers to the process of formulating actions and strategies against competitors based on the predicted direction and response of the competition, as well as its own goals, resources, capabilities, strengths, weaknesses, etc. The purpose of developing a competitive strategy is to gain advantage and victory in the competition and to achieve its own development and growth. There are several ways to develop a competitive strategy:

Competitive positioning method: Competitive positioning method refers to the method of determining one's position and role in the market according to the advantages and disadvantages of oneself and competitors, in order to select the appropriate competitive strategy, such as leader strategy, challenger strategy, follower strategy or segment strategy.

Competitive advantage method: Competitive advantage method refers to the method of determining one's core competitiveness and differentiation advantages according to the advantages and disadvantages of oneself and competitors, so as to select the appropriate competitive strategy, such as cost leading strategy, differentiation strategy or focusing strategy.

Competitive model method: The competitive model method refers to the method of determining one's own competitive style and competitive objectives based on the behavior and results of oneself and competitors in order to select the appropriate competitive strategy, such as attack strategy, defense strategy, cooperation strategy or avoidance strategy.

In the case of Champ Consulting, for example, it can develop a competitive strategy:

Competitive positioning method: According to the competitive advantage matrix, the position and role of Shangpu Consulting in the consulting industry is a follower, that is, it is in the middle level in terms of market share and business scope, and has a certain gap with strong competitors, but also has a certain potential. Therefore, Shangpu Consulting Company can adopt a follower strategy, that is, on the basis of maintaining its own advantages and characteristics, learn from the successful experience and practices of strong competitors, and improve its own level of competition and market position.

Competitive advantage method: According to the evaluation of competitive advantage, the core competitiveness and differentiation advantage of Shangpu Consulting Company are cross-industry vision and diversified thinking mode, that is, it can provide customers with innovative and comprehensive consulting solutions to meet the diversified and personalized needs of customers. Therefore, Champ Consulting can adopt a differentiation strategy, that is, by providing different products or services from competitors, creating unique value and advantages to attract and retain customers.

Competitive model approach: According to the game model, the competitive approach and competitive objective of Shangpu Consulting is to reduce prices, I .e. to capture and expand market share by providing low and attractive consulting prices that reflect their own cost efficiency and market competitiveness. Therefore, Champ Consulting can adopt an attack strategy, that is, through proactive and positive actions, pressure and influence competitors, and win more customers and profits.