1. identify competitor scope

Competitors are other businesses in the same market or industry that compete with the business for the same or similar customers, resources, or benefits. Competitors can be divided into direct competitors and indirect competitors. A direct competitor is an enterprise that provides the same or similar products or services, meets the same or similar customer needs, and has the same or similar market positioning and objectives. Indirect competitors refer to enterprises that provide different but alternative products or services, meet different but related customer needs, and have different but mutually influencing market positioning and objectives.

The purpose of determining the scope of competitors is to clarify the object and scope of competitor research and to avoid missing important competitors or wasting time and energy on unimportant competitors. There are a number of ways to determine the range of competitors, such as classifying and screening competitors based on product or service similarity, customer perception or choice, market segmentation or segmentation, etc. In general, priority should be given to direct competitors, then indirect competitors, and finally potential competitors.

Take Shangpu Consulting Company as an example. Shangpu Consulting Company is a consulting organization that specializes in providing industry research, market research, investment and financing consulting, IPO listing consulting and other services. Its main customers are enterprises and investors from all walks of life. Based on this information, it can be initially determined that the range of competitors of Champ Consulting is as follows:

Direct competitors: Consultants that provide the same or similar consulting services, meet the same or similar client needs, and have the same or similar market positioning and objectives, such as Deloitte, PricewaterhouseCoopers, McKinsey, Boston Consulting, Roland Berger, Analysys, iResearch, etc.

Indirect competitors: Consulting institutions that provide different but alternative consulting services, meet different but related client needs, and have different but mutually influencing market positioning and objectives, such as training institutions, headhunters, accounting firms, law firms, evaluation agencies, etc.

Potential competitors: Consulting institutions that have not yet entered the consulting industry, but have the ability and willingness to enter, or have entered but have not yet formed scale and influence, such as Internet companies, technology companies, media companies, industry associations, university research institutions, etc.

2. collection of competitor information

The purpose of collecting competitor information is to obtain the basic situation and key data of competitors for in-depth analysis and evaluation. There are many ways to collect competitors' information, such as by visiting competitors' official websites, social media platforms, news media, industry reports, market research, bidding, customer feedback, personal channels, etc., to obtain competitors' company information, product introduction, service content, marketing strategy, financial status, development trends and other information. The principle of collecting competitor information is as much as possible, complete, accurate and new, while abiding by business ethics and legal norms, and avoiding the use of improper means and channels.

In the case of Champ Consulting, an example of collecting competitor information is as follows:

Competitors: McKinsey

Company Information: McKinsey is a world-leading management consulting company, founded in 1926, headquartered in new york, USA. At present, McKinsey has more than 130 offices in more than 60 countries and regions around the world, with more than 30000 employees, serving enterprises, governments, non-profit organizations and other customers in all walks of life, providing consulting services in strategy, organization, operation, digitization, innovation, sustainable development and other aspects, as well as products and solutions for leadership training, data analysis, research reports, etc.

Product introduction: McKinsey's products and solutions cover many fields, such as McKinsey Digital (McKinsey Digital), which provides consulting services and tools in digital transformation, data analysis, artificial intelligence, cloud computing, Internet of Things, etc.; McKinsey Implementation (McKinsey Implementation), which provides consulting services and tools in strategy execution, change management, capability improvement, etc.; McKinsey Emerging Technology Center (McKinsey New Ventures), provide consulting services and tools for innovation incubation, technology development, business model exploration, etc.

Service content: McKinsey's service content includes the following aspects:(1) Provide services by industry, involving aerospace, automotive, banking, consumer goods, education, energy, finance, medical, retail, telecommunications and other industries;(2) Provide services by function, involving multiple functions such as strategy, organization, operation, marketing, finance, risk, human resources, innovation, and sustainable development;(3) Provide services by theme, involving digitalization, artificial intelligence, leadership, diversity, corporate culture, social responsibility, globalization, crisis management and other topics.

Marketing strategy: McKinsey's marketing strategy mainly includes the following aspects:(1) to establish and maintain brand image, to show McKinsey's professionalism, authority and social responsibility by publishing high-quality research reports, holding high-end forum activities, participating in major social issues, etc.;(2) to expand and maintain customer relations, increase McKinsey's customer satisfaction, loyalty and reputation by providing high-quality consulting services, establishing long-term partnerships, and cultivating loyal customer groups;(3) Innovate and promote products and solutions, through the development and introduction of new Technologies, tools, methods, models, etc., meet the different needs of customers, and enhance McKinsey's competitiveness and differentiation.

Financials: McKinsey's financial position is very strong, with global revenue of $28.9 billion billion in 2019, up 4.5 percent year-over-year, with consulting services accounting for 85 percent of revenue and products and solutions accounting for 15 percent of revenue. McKinsey's margins are also very high, with a net profit of $9.6 billion in 2019 and a net profit margin of 33%. McKinsey's financial position reflects its leading position and strong track record in the consulting industry.

Development trends: McKinsey's development trends are very active. It continues to expand into new markets and fields, establish strategic alliances with various partners, launch new products and solutions, and participate in various social welfare activities. For example, McKinsey will reach strategic cooperation with Chinese Internet giants such as Alibaba Group, Tencent Holdings and Baidu in 2020 to provide them with consulting services in digital transformation, data analysis and artificial intelligence. McKinsey will establish strategic partnerships with global technology giants such as Microsoft, Amazon and Google in 2021 to jointly develop and promote products and solutions in cloud computing, Internet of Things and block chain; mcKinsey will work with the United Nations, the World Bank, the World Health Organization and other international organizations in 2022 to address global social challenges such as the new crown epidemic, climate change and poverty.

3. analysis of competitors

The purpose of analyzing a competitor's situation is to gain insight into the strategies, capabilities, strengths, weaknesses, dynamics and expectations of competitors in order to assess their strengths and threats, identify their strengths and weaknesses, identify their opportunities and challenges, and predict their behavior and trends. There are many ways to analyze the situation of competitors, such as the use of SWOT analysis, Porter's five-force analysis, value chain analysis, strategic group analysis, competitive intelligence analysis, etc., to carry out systematic, structured, quantitative and qualitative analysis.

In the case of Champ Consulting, an example of an analysis of a competitor's situation is as follows:

Competitors: McKinsey

SWOT analysis: SWOT analysis is a method of analyzing internal strengths (Strengths) and weaknesses (Weaknesses), as well as external opportunities (Opportunities) and threats (Threats), to assess the competitiveness and development potential of an enterprise. McKinsey's SWOT analysis is as follows:

Advantages and Disadvantages

-High brand awareness, enjoy the reputation of the world's leading management consulting company-high service prices, the choice of customers and more demanding requirements

-Wide range of services, covering multiple industries, functions and topics, and being able to provide a full range of consulting services-The quality of services is unstable, and sometimes consulting projects fail or cause disputes

-Products and solutions are many, innovative and differentiated, and can meet the different needs of customers-Products and solutions are complex, requiring customers to invest more time and resources, and sometimes lead to customer dependence or dissatisfaction

-High-quality staff, rich experience and professional skills, able to provide customers with efficient consulting services-High staff mobility, facing greater brain drain and competitive pressure

Opportunity threat

-The market demand is growing. With the recovery and development of the global economy, the demand for consulting services from enterprises and investors in all walks of life is increasing.-The market competition is fierce. With the reduction and diversification of barriers in the consulting industry, various types of consulting institutions continue to emerge and develop, posing a threat to McKinsey's market share and profit margin

-Technological progress, with the development and application of emerging technologies such as digitalization, artificial intelligence, cloud computing, and the Internet of Things, it provides new opportunities and possibilities for the innovation and improvement of consulting services-technical risks, with network security, data privacy, The increase in problems and challenges in intellectual property rights has brought new risks and problems to the security and compliance of consulting services

-Social responsibility, with the increase in attention and attention to social welfare, environmental protection, human rights equality, etc., provides a new platform and window for the social value and influence of consulting services-social public opinion, with media supervision and public evaluation The changes and impacts of ethical standards have brought new pressures and challenges to the brand image and reputation of consulting services

4. develop competitor response strategies

The purpose of formulating a competitor's coping strategy is to formulate a strategy and marketing strategy suitable for itself according to the analysis results of the competitor's situation, so as to effectively deal with the threat of the competitor, take advantage of the competitor's disadvantage, seize the opportunity of the competitor, avoid the challenge of the competitor, and prevent the competitor's behavior and trend. There are many ways to develop competitor response strategies, such as the use of Porter's four basic competitive strategies, Porter's three general competitive strategies, Porter's value chain competitive advantage, Porter's five competitive response strategies, etc., for targeted, flexible and effective strategy development.

In the case of Champ Consulting, an example of developing a competitor response strategy is as follows:

Competitors: McKinsey

Financials: McKinsey's financial position is very strong, with global revenue of $28.9 billion billion in 2019, up 4.5 percent year-over-year, with consulting services accounting for 85 percent of revenue and products and solutions accounting for 15 percent of revenue. McKinsey's margins are also very high, with a net profit of $9.6 billion in 2019 and a net profit margin of 33%. McKinsey's financial position reflects its leading position and strong track record in the consulting industry.

Development trends: McKinsey's development trends are very active. It continues to expand into new markets and fields, establish strategic alliances with various partners, launch new products and solutions, and participate in various social welfare activities. For example, McKinsey will reach strategic cooperation with Chinese Internet giants such as Alibaba Group, Tencent Holdings and Baidu in 2020 to provide them with consulting services in digital transformation, data analysis and artificial intelligence. McKinsey will establish strategic partnerships with global technology giants such as Microsoft, Amazon and Google in 2021 to jointly develop and promote products and solutions in cloud computing, Internet of Things and block chain; mcKinsey will work with the United Nations, the World Bank, the World Health Organization and other international organizations in 2022 to address global social challenges such as the new crown epidemic, climate change and poverty.

4. develop competitor response strategies

The purpose of formulating a competitor's coping strategy is to formulate a strategy and marketing strategy suitable for itself according to the analysis results of the competitor's situation, so as to effectively deal with the threat of the competitor, take advantage of the competitor's disadvantage, seize the opportunity of the competitor, avoid the challenge of the competitor, and prevent the competitor's behavior and trend. There are many ways to develop competitor response strategies, such as the use of Porter's four basic competitive strategies, Porter's three general competitive strategies, Porter's value chain competitive advantage, Porter's five competitive response strategies, etc., for targeted, flexible and effective strategy development.

In the case of Champ Consulting, an example of developing a competitor response strategy is as follows:

Competitors: McKinsey

Porter's four basic competitive strategies: Porter's four basic competitive strategies are a way to choose different competitive strategies based on market scope and competitive advantage, including cost-leading strategies, differentiation strategies, concentration strategies and integrated strategies. Champ Consulting can choose the following strategies according to its own situation and objectives:

Cost leadership strategy: By reducing the cost of consulting services and improving the efficiency of consulting services, Champ Consulting can provide relatively low prices for consulting services, attract price-sensitive customers, and increase market share and profitability. Shangpu Consulting can reduce costs in the following ways:(1) Optimize the process and methods of consulting services to reduce unnecessary waste of time and resources;(2) Use emerging technologies such as digitalization, artificial intelligence, and cloud computing to improve The degree of automation and intelligence of consulting services;(3) Establish and maintain good supplier and partner relationships to reduce the external cost of consulting services.

Differentiation strategy: Champ Consulting can provide unique consulting services to meet the special needs of customers, thereby increasing the added value of consulting services, increasing customer satisfaction and loyalty, and enhancing brand image and reputation. Shangpu Consulting Company can provide differentiated consulting services in the following ways:(1) in-depth understanding of customers' industries, markets, competition, problems and objectives, and providing customized consulting service solutions;(2) providing innovative consulting service contents and forms by combining their own professional knowledge and experience; and (3) providing one-stop consulting service experience by using their own products and solutions.

Concentration strategy: Champ Consulting can provide professional consulting services by focusing on a particular market segment or customer group, thereby establishing a leading position in that segment or customer group, resisting competitor intrusion, and increasing market share and profitability. Shangpu Consulting Company can select and enter market segments or customer groups in the following ways:(1) According to its own advantages and characteristics, select market segments or customer groups with high growth potential, low competitive intensity, and high profit margins;(2) According to the characteristics and needs of market segments or customer groups, provide suitable consulting service products and solutions;(3) According to the feedback and dynamics of market segments or customer groups, continuously improve and optimize the quality and effectiveness of consulting services.

Comprehensive strategy: Shangpu Consulting can provide low-cost and high-quality consulting services by adopting cost-leading strategies and differentiation strategies at the same time, so as to gain competitive advantages in the entire market, attract various types of customers, and expand market size and influence. Shangpu Consulting Company can implement comprehensive strategies in the following ways:(1) Find a balance between cost control and quality improvement to achieve the best cost-effectiveness of consulting services;(2) In different markets or customer groups, flexibly Adjust the price and quality of consulting services to achieve differentiated pricing of consulting services;(3) In different consulting service products and solutions, rationally allocate costs and quality, achieve a differentiated portfolio of consulting services.