how to conduct competitive analysis & swot
TRANSCRIPT
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
29
9360 Falls of Neuse Rd, #205
Raleigh, NC 27615
President, Principal Consultant
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