pp05

Marketing Strategy
& Competitive Positioning

6th edition
Chapter 5
Competitor Analysis
Copyright © 2017, 2008, 2003 Pearson education, Inc. All Rights Reserved
Competitive Benchmarking
• Measure company’s strategies and operations
against the ‘best-in-class’ orgs.
– Identify who to benchmark against
– Identify what aspects of business to
benchmark
– Collect relevant data
Competitor Analysis
• Evaluate direct competitors within the strategic
group
• Evaluate companies within the industry
• Evaluate potential entrants & substitutes
Figure 5.1
The targets of competitor analysis
Figure 5.2
The components of competitor analysis
Source: adapted from Lehmann and Winer (1991).
Figure 5.3
Competitor objectives
Assess competitors’ current & future
objs
• Guidance to strategy development on:
– Where the co is intending to develop and in
which markets – local or international
• Guidance to intensity of competitor activity
and rivalry – mkt leader, increase mkt share,
mkt follower, new ventures, growth objs,
• Indication of future goals – look at ownership
structure of competitor
Figure 5.4
Competitor strategies
Assess competitors’ current
strategies and activities
• Target mkts – mkt segment, customers, pdts & services
offered, prices charged, ads & ad media
• Strategic focus – to create competitive advantage by:
– Lowering costs relative to competitors
– Provide valued uniqueness, differentiated products and
services that customers are willing to pay for
• Marketing mix – analysis of competitors customers,
pricing strategies, ad message & media, distribution
strengths & weaknesses
• Marketing org structure – how competitor respond to
environmental change or competitive action, position of
marketing in the org – assess using value chain analysis
Figure 5.5
The value chain and direct product costing
Figure 5.6
Competitor resources
Assess Competitors’ Capabilities
• Ability to innovate – technical resources (new
technology), creative & technical HR, funding
for R & D
• Production capacity & utilisation – physical
resources (equipment & factories) & HR skills
• Marketing ability – marketing mix ability,
marketing team & funding for marketing
activity
• Financial resources – funds for investment &
expansion
• Management ability - Copyright © 2017, 2008, 2003 Pearson education, Inc. All Rights Reserved
Figure 5.7
Competitor capabilities
Figure 5.8
Future competitor strategies
Figure 5.9
Good competitors
Figure 5.10
Sources of competitor information
Figure 5.11
Learning from competitors

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Marketing Strategy

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Source: adapted from Lehmann and Winer (1991).

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