Marketing Agility: A Step towards Acquiring Organizational Agility
Does marketing agility really make sense, or is it like another buzz word? The question itself carries sagacity because it’s important to understand if this term really makes sense in today’s business environment or is just a fad. The answer is – marketing agility is the real thing. It’s not yet another trend. Nor it […]
Role of Governments in International Businesses
The Need to Encourage Foreign Investment The previous articles have discussed how international businesses need supporting ecosystems and business friendly policies if they are to succeed in emerging markets. Of particular importance is the role of governments in deciding whether they would allow international businesses to setup their operations and encourage them to grow and […]
Tips for Providing the Resume a WOW Factor
“Wow Factor” is about achieving harmony or a balance between the distinguishable qualities, your new passions, and strengths. The wow factor is the USP that distinguishes you from others and attracts attention. A lot of us hardly bother to analyze what their wow factor could be, but the fact is that all of us possess […]
Advocacy Groups and Corporate Social Responsibility (CSR)
We have seen how corporations need to embrace CSR as a paradigm if the challenges of the 21st century have to be met. We have also examined the role of the media in championing CSR. In this article, we look at how Advocacy Groups and Pressure Groups like Greenpeace and Media Lens along with other […]
Introduction to Information Technology (IT) Strategy
Introduction: What is IT Strategy and Why it is Important As the joke goes, A person who is sitting in front of a computer and not knowing what to do has been described as Intel Inside and Idiot Outside. Similarly, organizations that do not have an IT strategy in place are akin to clueless organizations […]
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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