Definition, classification, identification and selection of 1. competitors

Definition of Competitor

Competitors are other businesses or organizations that compete with the business for limited resources, customers, or profits in the same market or industry. Competitors include not only direct competitors, I .e. firms that offer the same or similar products or services, but also indirect competitors, I .e. firms that offer alternative products or services, and potential competitors, I .e. firms that have the potential to enter a market or industry.

Classification of Competitors

Competitors can be classified according to different criteria, and the common classification methods are as follows:

(1) According to the relationship between competitors and enterprises, competitors can be divided into major competitors and secondary competitors. The main competitors are enterprises that have strong competitiveness and influence in market share, product quality, price level, marketing strategy, etc., and they pose a direct threat to the survival and development of enterprises. A secondary competitor is an enterprise that has a certain degree of competitiveness and influence with the enterprise in some aspects, but is not sufficient to cause serious damage to the enterprise, and they have an indirect impact on the survival and development of the enterprise.

(2) According to the size and status of competitors, competitors can be divided into leaders, challengers, followers and weak. A leader is an enterprise that occupies a dominant position in a market or industry, has the largest market share, the highest brand awareness, the strongest competitiveness and the best profit level. They usually have strong innovation ability and market control ability, and can formulate and lead the development trend of the market. Challengers refer to enterprises with certain market share, brand awareness, competitiveness and profit level in the market or industry. They usually have strong offensive consciousness and risk tolerance, and can challenge and attack leaders through different competitive strategies and means, trying to change the pattern and order of the market. Followers refer to enterprises with small market share, brand awareness, competitiveness and profit level in the market or industry. They usually have weak innovation ability and market control ability. They can only maintain and protect their market position and interests by imitating and following the competitive strategies and means of leaders or challengers. The weak refers to the enterprises that are in the marginal position in the market or industry, with insignificant market share, brand awareness, competitiveness and profit level. They usually have low innovation ability and market control ability, and it is difficult to compete effectively with other competitors. They can only survive and develop by reducing costs and prices, or seeking cooperation and exit.

(3) According to the strategic intention and behavior pattern of competitors, competitors can be divided into attacking competitors and defensive competitors. An offensive competitor is an enterprise that has a strong sense of attack and risk tolerance, adopts proactive and aggressive competitive strategies and means, tries to expand its market share and profit level, or weakens and attacks the competitiveness and influence of other competitors, and they usually behave as challengers or followers. Defensive competitors refer to enterprises that have weak offensive consciousness and risk tolerance, adopt passive and passive competitive strategies and means, try to maintain and protect their market share and profit level, or avoid and ease conflicts and competitions with other competitors. They usually behave as leaders or weak players.

Competitor identification and selection

Competitor identification and selection is the first and most important step in competitor analysis, which determines the scope and direction of competitor analysis. Competitor identification and selection should follow the following principles:

(1) Customer-oriented. Customers are the core of the market and the source of competition. The identification and selection of competitors should be based on customers' needs, preferences, cognition and behavior, and find out those competitors who compete for the same target market or the same market segment with the enterprise, instead of ignoring those competitors who provide alternative products or services based on the similarity or difference of products.

(2) Strategic orientation. Strategy is the key to competition and the purpose of competition. The identification and selection of competitors should be based on the matching degree and conflict degree of strategy, and find out those competitors who have the same or similar strategic intention and behavior pattern with the enterprise, instead of ignoring those competitors who have different or opposite strategic intention and behavior pattern according to the size or status or geographical division.

(3) Dynamic orientation. Dynamic is the characteristic of competition, and it is also the difficulty of competition. The identification and selection of competitors should be based on dynamic changes and influences, and find out those competitors who have strong interaction and mutual influence with the enterprise, rather than static The state or result is based on ignoring those competitors who have weaker interaction and mutual influence.

Competitor identification and selection should be based on the above principles, combined with the enterprise's objectives, resources, capabilities and environment, comprehensive and trade-off, determine the priority and focus of competitor analysis, avoid too many or too few competitors, avoid important or irrelevant competitors, so as to improve the efficiency and effectiveness of competitor analysis.

2. competitors' market position, competitiveness, strategic intentions, behavior patterns and responsiveness

Competitor's Market Position

The market position of a competitor is the relative position and role of a competitor in a market or industry, which reflects the overall performance of the competitor in terms of size, share, growth, stability and influence. The market position of competitors can be evaluated by the following indicators:

(1) Market share. Market share refers to the proportion of sales or sales held by competitors in the market or industry, which reflects the market share and market control of competitors, and is the most basic and intuitive indicator to measure the market position of competitors. Market shares can be calculated and compared by overall market, target market, or market segment to understand the market coverage and market penetration of competitors.

(2) Market growth rate. Market growth rate refers to the growth rate of sales or sales volume of competitors in the market or industry, which reflects the market development potential and market attractiveness of competitors, and is the most important and sensitive indicator to measure the market position of competitors. Market growth rates can be calculated and compared by time, space or product to understand the market dynamics and market changes of competitors.

(3) Market stability. Market stability refers to the degree of fluctuation of a competitor's sales or sales volume in a market or industry, which reflects the competitor's market risk and market security, and is the most stable and reliable indicator of a competitor's market position. Market stability can be calculated and compared by season, cycle or trend to understand the market fluctuations and market forecasts of competitors.

(4) Market influence. Market influence refers to the influence of competitors on other competitors or customers in the market or industry, which reflects the market leadership and market competitiveness of competitors, and is the most comprehensive and subjective indicator of the market position of competitors. Market influence can be calculated and compared by brand, price, innovation or service to understand the market advantages and market differences of competitors.

Competitiveness of competitors

Competitor competitiveness refers to the relative advantages or disadvantages of competitors compared with other competitors in the market or industry, which reflects the comprehensive level of resources, capabilities, efficiency and effectiveness of competitors. Competitors can be evaluated by the following indicators:

(1) Resource advantages. Resource advantage refers to the resources owned by competitors that can provide them with competitive advantage. It reflects the competitive foundation and competitive potential of competitors, and is the most fundamental and long-term index to measure the competitiveness of competitors. Resource advantages can be calculated and compared according to financial, human, material or information to understand the size and quality of competitors' resources.

(2) Ability advantages. Capability advantage refers to the ability of competitors to provide them with competitive advantage, which reflects the competitive means and competitive technology of competitors, and is the most important and core index to measure the competitiveness of competitors. Competency strengths can be calculated and compared in terms of production, research and development, marketing or management to understand the competency level and competency structure of competitors.

(3) Efficiency advantages. Efficiency advantage refers to the efficiency of competitors that can provide them with competitive advantage, which reflects the competitive costs and competitive benefits of competitors, and is the most direct and objective index to measure the competitiveness of competitors. Efficiency advantages can be calculated and compared according to input-output ratio, asset turnover, profit margin or net profit to understand the efficiency level and efficiency difference of competitors.

(4) The effect advantage. Effect advantage refers to the effect that a competitor has that can provide it with a competitive advantage, which reflects the competitive results and competitive impact of competitors, and is the final and most comprehensive measure of the competitiveness of competitors. Effectiveness advantage can be calculated and compared in terms of market share, market growth rate, market stability or market influence to understand the level of effectiveness and effectiveness evaluation of competitors.

Strategic intentions of competitors

The strategic intent of a competitor is the goal and vision that the competitor pursues in the market or industry, which reflects the strategic direction and strategic choice of the competitor and is the most important factor influencing the competitor's behavior. The strategic intentions of competitors can be evaluated by the following indicators:

(1) Strategic objectives. Strategic objectives are specific, quantifiable, time-bound goals that competitors expect to achieve in the market or industry, which reflect the strategic needs and expectations of competitors, and are the most direct and objective indicators of a competitor's strategic intent. Strategic objectives can be calculated and compared by market, financial, product or organization to understand the strategic positioning and strategic differences of competitors.

(2) Strategic vision. Strategic vision refers to the ambitious, attractive and challenging vision that competitors expect to achieve in the market or industry. It reflects the strategic direction and strategic pursuit of competitors, and is the final and most comprehensive indicator to measure the strategic intention of competitors. Strategic vision can be calculated and compared by mission, value, philosophy or culture to understand the strategic dynamics and strategic value of competitors.

Competitor behavior patterns

A competitor's pattern of behavior is the specific, observable, and measurable behavior taken by a competitor in a market or industry, which reflects the competitor's strategic execution and strategic change, and is the most direct factor that affects the competitor's effectiveness. The behavior pattern of competitors can be evaluated by the following indicators:

(1) Type of behavior. The type of behavior refers to the different types of behavior taken by competitors in the market or industry, which reflects the purpose and means of behavior of competitors, and is the most basic and intuitive indicator of the behavior pattern of competitors. Behavior types can be calculated and compared in terms of attack, defense, cooperation, or withdrawal to understand the behavioral tendencies and behavioral choices of competitors.

(2) Frequency of behavior. Behavioral frequency refers to the number of occurrences of behaviors taken by competitors in the market or industry, which reflects the behavioral activity and behavioral sensitivity of competitors, and is the most important and sensitive indicator of the behavior pattern of competitors. Behavioral frequencies can be calculated and compared by time, space, or product to understand the behavioral dynamics and behavioral changes of competitors.

(3) strength of behavior. Behavioral intensity refers to the influence of the behavior taken by competitors in the market or industry, which reflects the strength and effect of the competitor's behavior, and is the most direct and objective indicator of the competitor's behavior pattern. Behavioral intensity can be calculated and compared by price, quality, innovation, or service to understand the behavioral strengths and behavioral differences of competitors.

(4) Behavioral stability. Behavioral stability refers to the continuity of the behavior taken by competitors in the market or industry, which reflects the behavior patterns and behavior predictions of competitors, and is the most stable and reliable indicator of the behavior patterns of competitors. Behavioral stability can be calculated and compared by season, cycle or trend to understand the behavior fluctuations and behavior expectations of competitors.

Competitor's ability to react

Competitor responsiveness refers to the ability of competitors to respond to other competitors or environmental changes in the market or industry, which reflects the ability of competitors to adapt and learn, and is the most important factor affecting the efficiency of competitors. The responsiveness of competitors can be evaluated by the following indicators:

(1) Reaction speed. Reaction speed refers to the reaction time of competitors to other competitors or environmental changes in the market or industry, which reflects the agility and timeliness of competitors, and is the most basic and intuitive indicator of competitors' responsiveness. The reaction speed can be calculated and compared according to the pre-reaction, during the reaction or after the reaction to understand the reaction stage and reaction delay of the competitor.

(2) reaction intensity. Response intensity refers to the strength of a competitor's response to other competitors or environmental changes in the market or industry, which reflects the strength and effectiveness of the competitor's response, and is the most direct and objective indicator of the competitor's ability to respond. Response intensity can be calculated and compared by price, quality, innovation or service to understand the response advantages and response differences of competitors.

(3) Response frequency. Reaction frequency refers to the number of times a competitor reacts to other competitors or environmental changes in the market or industry, which reflects the competitor's reaction activity and sensitivity, and is the most important and sensitive indicator of the competitor's ability to react. Reaction frequency can be calculated and compared according to time, space or product to understand the reaction dynamics and reaction changes of competitors.

(4) reaction stability. Response stability refers to the continuity of a competitor's response to other competitors or environmental changes in the market or industry, which reflects the competitor's response patterns and response forecasts, and is the most stable and reliable indicator of a competitor's responsiveness. Reaction stability can be calculated and compared according to seasons, cycles or trends to understand the reaction fluctuations and reaction expectations of competitors.

3. Champu Consulting's Competitor Analysis Case

Shangpu Consulting is a company specializing in management consulting, strategic consulting, market consulting and human resources consulting, providing high-quality consulting services to customers in all walks of life. The example of a competitor analysis of Champu Consulting is as follows:

Competitor identification and selection

Champ Consulting's competitors are in the following categories:

(1) Internationally renowned consulting firms, such as McKinsey, Boston Consulting, Bain Consulting, etc., which provide a full range of consulting services on a global scale, with strong brand influence, client resources and professional capabilities, are the main competitors of Shangpu Consulting.

(2) Well-known domestic consulting companies, such as Washington Consulting, Booz Consulting, Zhilian Consulting, etc., provide professional consulting services in the domestic market, have high brand awareness, customer loyalty and industry experience, and are secondary competitors of Shangpu Consulting.

(3) Emerging domestic consulting companies, such as Ease Consulting, Excellence Consulting, Dingzhi Consulting, etc., which provide innovative consulting services in the domestic market, have strong growth, flexibility and adaptability, and are potential competitors of Shangpu Consulting.

(4) Other domestic consulting firms, such as small consulting firms, professional consulting firms, industry consulting firms, etc., which provide different consulting services in the domestic market, have lower costs, prices and thresholds, and are indirect competitors of Shangpu Consulting.

The priorities and focus of the competitor analysis of Champu Consulting are as follows:

(1) Prioritize the analysis of internationally renowned consulting firms, understand their market position, competitiveness, strategic intentions, behavior patterns and response capabilities, identify their strengths, weaknesses, opportunities and threats, and formulate effective competitive strategies and countermeasures to improve their competitiveness and influence.

(2) Secondary analysis of well-known domestic consulting firms, to understand their market position, competitiveness, strategic intentions, behavior patterns and response capabilities, to identify their strengths, weaknesses, opportunities and threats, to develop effective competitive strategies and countermeasures to maintain their market share and profit levels.

(3) Potential analysis of emerging domestic consulting firms, understanding their market position, competitiveness, strategic intentions, behavior patterns and response capabilities, identifying their strengths, weaknesses, opportunities and threats, and developing effective competitive strategies and countermeasures to prevent their market share and profit levels from being eroded.

(4) Indirectly analyze other domestic consulting firms, understand their market position, competitiveness, strategic intentions, behavior patterns and response capabilities, identify their strengths, weaknesses, opportunities and threats, formulate effective competitive strategies and countermeasures, and expand their market coverage and market penetration.

Competitor evaluation criteria and index system

The evaluation criteria and indicator system for the competitor analysis of Champu Consulting are as follows:

(1) Evaluation criteria and indicator system for market position

market position evaluation standard index system

Market share Market share and market control Overall market share, target market share, segment market share

Market growth rate Market development potential and market attractiveness Time market growth rate, spatial market growth rate, product market growth rate

Market stability Market risk and market security Seasonal market stability, cyclical market stability, trend market stability

market influence market leadership and market competitiveness brand market influence, price market influence, innovation market influence, service market influence

(2) Evaluation criteria and indicator system for competitiveness

competitiveness evaluation standard index system

Resource advantage Resource scale and resource quality Financial resource advantage, human resource advantage, material resource advantage, information resource advantage.

Ability advantage Ability level and ability structure Production ability advantage, R & D ability advantage, marketing ability advantage, management ability advantage

Efficiency advantage Efficiency level and efficiency difference Input-output ratio, asset turnover, profit margin, net profit.

Effect advantage Effect level and effect evaluation Market share, market growth rate, market stability, market influence.

(3) Evaluation criteria and indicator system for strategic intent

strategic intention evaluation standard index system

Strategic objectives Strategic needs and strategic expectations Market strategic objectives, financial strategic objectives, product strategic objectives, organizational strategic objectives.

strategic vision strategic direction and strategic pursuit mission strategic vision, value strategic vision, concept strategic vision, cultural strategic vision

(4) The evaluation criteria and index system of behavior patterns.

behavior pattern evaluation standard index system

Type of behavior The purpose of behavior and behavior means Attack behavior type, defensive behavior type, cooperative behavior type, withdrawal behavior type

behavior frequency behavior activity and behavior sensitivity time behavior frequency, spatial behavior frequency, product behavior frequency

Behavior intensity Behavior intensity and behavior effect Price behavior intensity, quality behavior intensity, innovation behavior intensity, service behavior intensity

Behavior stability Behavior law and behavior prediction Seasonal behavior stability, periodic behavior stability, trend behavior stability

(5) Evaluation criteria and indicator system for responsiveness

reaction ability evaluation standard index system

Reaction speed Reaction agility and timeliness Reaction speed before reaction, reaction speed during reaction, reaction speed after reaction

Reaction intensity Reaction intensity and effect Price reaction intensity, quality reaction intensity, innovation reaction intensity, service reaction intensity

reaction frequency reaction activity and reaction sensitivity time reaction frequency, spatial reaction frequency, product reaction frequency

Reaction stability Reaction law and reaction prediction Seasonal reaction stability, periodic reaction stability, trend reaction stability

Competitor evaluation methods and application value

The evaluation methodology and application value of the competitor analysis of Champu Consulting are as follows:

(1) Evaluation method. Evaluation method refers to the specific, actionable and quantifiable method used by Shangpu Consulting to evaluate competitors, which can help Shangpu Consulting to effectively collect, organize, analyze and evaluate competitor information, so as to obtain valuable.Conclusionand recommendations. Evaluation methods can be divided into the following:

Data analysis method. Data analysis refers to the use of mathematical, statistical, economic and other methods, the competitor's data processing, analysis and interpretation of the method, it can help Shangpu consulting company objectively, scientifically and systematically evaluate the competitor's market position and competitiveness, to find out the competitor's strengths, weaknesses, opportunities and threats. The common methods of data analysis are comparative analysis, trend analysis, proportional analysis, regression analysis, cluster analysis and so on.

Scenario analysis. Scenario analysis refers to the method of predicting and deducing the future development of competitors according to different assumptions, which can help Shangpu Consulting to evaluate the strategic intention and behavior pattern of competitors subjectively, creatively and plurally, and find out the possible, expected, best and worst scenarios of competitors. Common methods of scenario analysis include false attempts, brainstorming, Delphi, and war games.

Model analysis. Model analysis refers to the use of graphics, symbols, formulas and other methods to abstract, simplify and standardize the information of competitors, which can help Shangpu Consulting intuitively, logically and consistently evaluate the reaction ability and competitive strategy of competitors, and find out the behavior law and behavior prediction of competitors. The common methods of model analysis are matrix analysis, tree analysis, network analysis, game analysis and so on.

(2) application value. Application value refers to the actual, useful and beneficial value that Shangpu Consulting can obtain by evaluating competitors, which can help Shangpu Consulting to improve its competitive advantage and market position and realize its strategic objectives and strategic vision. Application value can be divided into the following:

Understand the value. Understanding value refers to the comprehensive, in-depth and accurate understanding of competitors that Shangpu Consulting can obtain by evaluating competitors. It can help Shangpu Consulting to eliminate misunderstandings and prejudices about competitors, enhance their knowledge and understanding of competitors, and improve their respect and trust.

comparative value. Comparative value refers to the relative, comparative and evaluation comparison that Shangpu Consulting Company can obtain between itself and its competitors by evaluating its competitors. It can help Shangpu Consulting Company to find out the advantages and disadvantages of itself and its competitors, find out the gap and deficiency between itself and its competitors, and improve its competitiveness and efficiency.

learning value. Learning value refers to the beneficial, valuable and enlightening learning that Shangpu Consulting Company can obtain by evaluating competitors. It can help Shangpu Consulting Company to learn from the successful experience and lessons of competitors, absorb the advantages and strengths of competitors, and improve its innovation ability and adaptability.

strategic value. Strategic value refers to the favorable, supportive and guiding value that Shangpu Consulting Company can obtain for its own strategy by evaluating its competitors. It can help Shangpu Consulting Company to formulate reasonable, effective and targeted strategies, realize its own strategic goals and strategic vision, and improve its market share and profit level.