Business Competitor Analysis
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Analysis
Where does analysis fit in with competitive understanding? Competitive analysis is the cornerstone of effective strategy formulation and execution.4 Valuable analysis helps decision
makers to understand and predict critical market-changing actions that may be taken by
competitors and other competition-impacting stakeholders. These decision makers are
charged with answering a small number of very powerful questions about their organization, including the following:
- What is our current status or situation?
- What are our options?
- Which direction do we want to go?
- Which direction should we go?
- How can we get to where we have decided we are going?
- How will we know that we have gotten there?
Business and Competitive Analysis: Definition, Context, and Benefits Business competition now comes in many different forms and from a great variety of competitors, and the challenges are increasing.
Business and Competitive Analysis: Definition, Context, and Benefits Competitive Analysis and Decision Making Most organizations today are not structured or organized properly to make good decisions that will help them outperform their competition in the marketplace.
It is commonplace for this book’s authors to hear from decisions makers who lament in retrospect: “If only I’d known that, I’d never have made that decision or taken that action.” Such comments reflect an absence of intelligence supporting the decision-maker and the lack of greater insight behind their decisions and subsequent actions. These are quite different challenges to simply trying to build market share in an existing static and simple market space, and the potential for them to miss the disruptive forms of activity that may be occurring on the fringes of their still-lucrative markets is high.
Loss of traditional means of competitive structuring and advantage: Traditionally, companies could achieve competitive advantage through scale economies, segment entrenchment, first-mover advantages, and other such industry-level gains.
Business and Competitive Analysis: Definition, Context, and Benefits Dynamic and rapidly evolving technology: Physical strengths are being replaced by intangible assets such as intellectual property, knowledge, intelligence, brands, RD teams, and market position, resulting in volume-based advantages being less prominent.
Even in industries where scale-based advantages still exist, typically manufacturing, the continual push by businesses across the globe to improve operational efficiency has made it harder to sustain such advantages
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