Cutting Costs Strategically
February 12, 2025
Today’s markets represent the surplus market, with a wide range of product available for sell. Consumer has huge product offering to choose from, for soap, there are more than dozen brands and each brand has at least 4 or 5 varieties. Companies have to work on strategies, which would differentiate their products from competitors. This […]
Building relationship with customers in current market trends is the most important aspect that an organization should focus on. Distinction and eminence are now most sustainable and affirm for which developing good relationship with customers is must. Some of the substantial outcomes of building a quality relationship is explained below by which need of relationship […]
Strategic brand management’s goal is to develop strong consumer based brand equity. To reach these goal companies have to design and execute well thought marketing programs. However, task does not end at executing marketing programs, companies to have to construct brand equity measurement system to understand the impact of on consumer mind. One thing to […]
Marketing is a subject that draws a lot of students who find it most interesting and challenging. No doubt marketing is a challenge. Students who study Philip Kotler will definitely become proficient with the basic foundations of marketing and concepts. However to be able to take up a marketing responsibility in an Organisation or to […]
What Average People Think of Social Media ? Average people think of social media as a leisure activity. They think social media exists so that they can connect with their friends and family and share what is important to them. That is exactly what it is from a consumer point of view. It is a […]
Organizations must operate within a competitive industry environment. They do not exist in vacuum.
Analyzing organization’s competitors helps an organization to discover its weaknesses, to identify opportunities for and threats to the organization from the industrial environment.
While formulating an organization’s strategy, managers must consider the strategies of organization’s competitors.
Competitor analysis is a driver of an organization’s strategy and effects on how firms act or react in their sectors.
The organization does a competitor analysis to measure/assess its standing amongst the competitors.
Competitor analysis begins with identifying present as well as potential competitors. It portrays an essential appendage to conduct an industry analysis.
An industry analysis gives information regarding probable sources of competition (including all the possible strategic actions and reactions and effects on profitability for all the organizations competing in the industry). However, a well-thought competitor analysis permits an organization to concentrate on those organizations with which it will be in direct competition, and it is especially important when an organization faces a few potential competitors.
Michael Porter in Porter’s Five Forces Model has assumed that the competitive environment within an industry depends on five forces:
These five forces should be used as a conceptual background for identifying an organization’s competitive strengths and weaknesses and threats to and opportunities for the organization from it’s competitive environment.
The main objectives of doing competitor analysis can be summarized as follows:
Competitors should be analyzed along various dimensions such as their size, growth and profitability, reputation, objectives, culture, cost structure, strengths and weaknesses, business strategies, exit barriers, etc.
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