how to conduct competitive analysis & swot

COMPETITIVE ANALYSIS

& SWOT

Dragana Mendel President, Principal Consultant @ANAGARD, LLC

“©2017 ANAGARD, LLC — Competitive Analysis & SWOT

"The essence of strategy formulation is coping with competition."

— Michael Porter

©2017 ANAGARD, LLC — Competitive Analysis & SWOT

AGENDA

1. HOW TO DO COMPETITIVE ANALYSIS

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Collect Competitors’ Data

Organize Data

Analyze Data

Make an Action Plan

2.WORKSHOP: BUILD SWOT FOR YOUR COMPANY

©2017 ANAGARD, LLC — Competitive Analysis & SWOT

BARRIERS TO COMPETITIVE ANALYSIS

Why do not all firms have a formal reporting system designed to collect and analyze information about competitors?

➤ Overconfidence in product's continued success reduces the willingness to collect competitor information

➤ Where to collect competitors’ information & how to analyze it

©2017 ANAGARD, LLC — Competitive Analysis & SWOT

COMPETITIVE ANALYSIS OVERVIEW➤ Secondary Market Research➤ Primary Market Research➤ Assessing Competitors' Current Objectives ➤ Assessing Competitors' Current Strategies ➤ Marketing Strategy:

➤ Pricing — Promotion — Distribution — Product/Service Capabilities ➤ How to Assess Competitors' Strategies➤ Assessing Competitors' Capabilities:

➤ Ability to Conceive and Design — Ability to Produce —Ability to Market — Ability to Finance — Ability to Manage

➤ What to Do with the Information5

SECONDARY MARKET RESEARCHAlways start competitive analysis with secondary market

research

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©2017 ANAGARD, LLC — Competitive Analysis & SWOT

SOURCES: SECONDARY MARKET RESEARCH

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OBSERVE COMPETITORS’ ACTIVITIES

➤ Search Engine➤ Local & National Newspapers➤ Press Releases➤ Trade Associations & Journals➤ Annual Reports➤ 10k , Form-D➤ Patent, Trademark Filling➤ Marketing Brochures➤ Consultants

Make it a routine:

dedicate one day per

month on data

collection

©2017 ANAGARD, LLC — Competitive Analysis & SWOT

SOURCES: SECONDARY MARKET RESEARCH

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MEASURE COMPETITOR’S INTERNET INFLUENCE

➤ Estimate Traffic ➤ SERP Ranking ➤ Social Media Presence

Tools: SEM Rush, Moz,

SimilarWeb, Alexa, SimplyMeasured, LinkedIn Premier, Google Benchmark

& Trends http://www.anagard.com/blog/2015/12/04/part-812-internet-summit-2015-making-the-case-for-seo/

©2017 ANAGARD, LLC — Competitive Analysis & SWOT

EXAMPLE

Industry: Gym , Health & Fitness Clubs

1. Main Street Fitness Club — competition is local

2. High Growth Startup for new Fitness Technology — competition is global

©2017 ANAGARD, LLC — Competitive Analysis & SWOT

GYM, HEALTH & FITNESS CLUBS INDUSTRY OUTLOOK IN 2016

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Growth stage industryIntense, but fragmented competitionHealthy profit marginsSource: IBISWorld Report

©2017 ANAGARD, LLC — Competitive Analysis & SWOT 11

% of Householdsregular exercise at Home 2+ times/week

max: 29.32% — 32.50%

Source: SimplyMap.com

©2017 ANAGARD, LLC — Competitive Analysis & SWOT 12

% of Householdsregular exercise at Club 2+ times/week

max: 13.55% — 20.00%

Source: SimplyMap.com

PRIMARY MARKET RESEARCHIn-depth analysis of your top competitors

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©2017 ANAGARD, LLC — Competitive Analysis & SWOT

SOURCES: PRIMARY MARKET RESEARCH

➤ Your sales force➤ Your customers➤ Your employees➤ Your suppliers➤ Consultants

➤ On no! Fake job ads!

ANALYSISAnalyze collected competitors’ data once per quarter

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©2017 ANAGARD, LLC — Competitive Analysis & SWOT

ASSESS COMPETITORS’ CURRENT OBJECTIVES➤ Product or Brand Objectives

➤ Grow: observe advertising & marketing activities➤ Hold: observe price fluctuations, promotions➤ Harvest: decrease in marketing activities

➤ Estimate product market share or profits

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Growth?

Harvest?

©2017 ANAGARD, LLC — Competitive Analysis & SWOT

ASSESS YOUR COMPETITOR’S PORTFOLIO OBJECTIVES & STRATEGIES

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Product

Price Promotion

Place

COMPETITORS’ PORTFOLIO SCORECARD

A. Product (quality, value chain, benefits)B. Target Segment (who, where, when, why)C. Place (distribution method and coverage)D. Promotion (total $, methods)E. Advertising (strategy, media, timing, budget)F. Price (retail, wholesale)

©2017 ANAGARD, LLC — Competitive Analysis & SWOT

HIGH END BOUTIQUE FITNESS CLUB FOR A WEALTHY WEEKEND WARRIOR

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Metric Competitor 1 Competitor 2 High = 5 Low = 1

Product 4 1 Latest fitness craze, top instructors

No frills weight machines, treadmills

Target Segment 3 2 Affluent, competitive fitness enthusiasts Anyone with a pulse

Place 4 2 Located in wealthiest zip code in Triangle

Located in poorest zip code in Triangle

Promotion 5 1 Never, or 1-2 per year discount

Non-stop discounts & coupons

Advertising 3 2 Heavy NonePrice 5 1 Expensive Cheap

Total Score 0.80 0.30

©2017 ANAGARD, LLC — Competitive Analysis & SWOT

Don’t forget to

score your own

company!

COMPETITORS’ ABILITIES SCORECARD

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1. Ability to Innovate1. Technical Resources (patents, copyrights,

technical know-how)2. Human Resources (key people & skills)3. R&D Funding (% of revenue, consistency

of funding R&D over time, government grants)

4. Management Processes (SixSigma)2. Ability to Produce

1. Physical Resources (Buildings, capacity, processes)

2. Equipment (automation, maintenance, flexibility)

3. Human Resources (key people & skills, workforce mix)

4. Suppliers (quality, capacity, commitment)3. Ability to Market

1. Sales Force (skills, size, type, location)2. Distribution network (skills, type)3. Service & sales policies4. Advertising 5. Funding (total, consistency over time)

4. Ability to Finance1. Long term (debt/equity ratio, cost of debt)2. Short term (cash, line of credit, liquidity)3. Returns from operations (margin, profits,

cash flow, returns of sales, assets, marketing expenditures, inventory, receivables turnover)

4. System (budgeting, forecasting, controlling)

5. Ability to Manage1. Key People (objectives, priorities, values,

compensation)2. Decision making (location, type, speed)3. Planning (type, emphasis, time span)4. Staffing (longevity and turnover,

experience)5. Organization (centralization, functions, use

of staff)

©2017 ANAGARD, LLC — Competitive Analysis & SWOT

SYNTHESIZE COMPETITIVE ANALYSIS DATA IN A SCORECARD

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Metric My Company Competitor 1 Competitor 2

Product, Go-To-Market 1 5 3

Financials 1 4 3

Operations 2 4 4

Innovation 5 3 4

Management 3 4 2

Total Score 0.48 0.80 0.64

INTROSPECTIONDo SWOT Analysis

©2017 ANAGARD, LLC — Competitive Analysis & SWOT 22

Strength

Opportunities

Weakness

Threats

S W

O T

DO STRATEGIC ASSESSMENT & PLANNING 1 —2 TIMES PER YEAR

“©2017 ANAGARD, LLC — Competitive Analysis & SWOT

Are you overwhelmed?

Don’t boil the ocean

©2017 ANAGARD, LLC — Competitive Analysis & SWOT

BASIC BUILDING BLOCKS OF COMPETITIVE ADVANTAGE

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Innovation Customer Responsiveness

Efficiency Quality as Excellence & Reliability

Don’t spread yourself too

thin. Focus on 1 to 2

competitive advantage

building blocks

©2017 ANAGARD, LLC — Competitive Analysis & SWOT

FOCUS ON 1 — 2 AREAS FOR IMPROVEMENT

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Metric My Company Competitor 1 Competitor 2

Product, Go-To-Market 1 5 3

Financials 1 4 3

Operations 2 4 4

Innovation 5 3 4

Management 3 4 2

Total Score 0.48 0.80 0.64

YES, COMPETITOR CAN CRUSH YOURemember $SNAP IPO?

©2017 ANAGARD, LLC — Competitive Analysis & SWOT

SNAP, INC IPO FROM $33B VALUATION TO….➤ $SNAP IPO $17/share➤ First day of trading

03/02/2017 opens at: $24/share

➤ Closed on the first day of trading with 44% jump

➤ Market cap of $33B for silly camera, social media company

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©2017 ANAGARD, LLC — Competitive Analysis & SWOT

03/29/2017: FACEBOOK INTRODUCES FILTERS FOR MESSENGER

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20% “haircut”

©2017 ANAGARD, LLC — Competitive Analysis & SWOT

CONTACT ANAGARD, LLC

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9360 Falls of Neuse Rd, #205

Raleigh, NC 27615

President, Principal Consultant

DMendel@ANAGARD.com

Office: +1.919.876.1314

Web site: http://ANAGARD.com

DRAGANA MENDEL

©2017 ANAGARD, LLC — Competitive Analysis & SWOT 30

WORKSHOP TIME!

LET ME HELP, ASK ME QUESTIONS