Analysis for Marketing Planning

Market Sensing:Competitor Analysis

Competitor Analysis

Assess current objectivesAssess current strategiesAssess capabilitiesAssess commitment

Future Goals

CapabilitiesAssumptions

Current Strategy

Competitor’s Response Profile

Is the competitor satisfied with its current position?What likely moves or strategy shifts will the competitor make?Where is the competitor vulnerable?What will provide the greatest and most effective retaliation by the competitor?

What drives thecompetitor

Held about itselfand the industry

What the competitor is doing and can do

Both strengthsand weaknesses

Goals

Should fit with corporate goals and objectives

Indicates level of aggressivenessGrowthProfitabilityCash flow

Current Strategies

PositioningTarget market selectionCore strategy implementation

Capabilities

Ability to conceive/designAbility to produce Marketing abilitiesFinancial resourcesAbility to manage

Tools for Evaluating Capabilities

Competitive gridCompares your firm and major competitors on

assets and skills most relevant to competitive strength.

Competitive Grid of American and Japanese Luxury Cars in U.S. Market

American JapaneseCadillac Lincoln Lexus Acura Infiniti

Assets & SkillsKey for Success

New product capacityProduct qualityCost structureProduct differentiationDealer satisfactionMarket share

Secondary ImportanceFlexible productionFinancial capabilityQuality of managementBrand name recognitionQuality of service

Key: Strong Average WeakAbove Ave. Less than Ave.

Competitive Profile Analysis

Product uniqueness

Relative product quality

Price

Service

Availability/convenience

Reputation/image

Location

Advertising and promotional policies/

effectiveness

Product design

Caliber of personnel

Raw material cost

Financial condition

Production capability

R&D position

Variety/selection

Competitive Factor Co. A Co. B Co. C Your Co.