the johnson agency 1 competitor analysis “induce your competitors not to invest in those products,...

THE JOHNSON AGENCY THE JOHNSON AGENCY 11

COMPETITOR ANALYSISCOMPETITOR ANALYSIS

“Induce your competitors not to invest in those products, markets and services where you intend to invest the most…that is the fundamental rule of strategy.”

Bruce HendersonFounder, BCG


COMPETITOR ANALYSISCOMPETITOR ANALYSIS

IDENTIFYING COMPETITORSDEVELOPING THE DATA SET ANALYSIS & PRESENTATIONIDENTIFYING STRATEGIC SCA’S


IDENTIFYING COMPETITORSIDENTIFYING COMPETITORS

Identify Usual CompetitorsCustomer ChoicesProduct-Use AssociationsUsing Strategic Groups

similar competitive strategiessimilar characteristicssimilar assets & competencies


EVALUATING COMPETITORSEVALUATING COMPETITORS

EvaluationEvaluate IntensityPorter Analysis Cost Structure &

CapabilitiesObjectives & Strategies


Elements of Strategy Elements of Strategy WinerWiner

Two Key ElementsSegment AppealCore Strategy

Information SourcesProduct Sales LiteratureSales ForceTrade Advertising


5 KEY QUESTIONS TO5 KEY QUESTIONS TODETERMINE SCA’S DETERMINE SCA’S AakerAaker

Identify assets or competency that contribute to success/weakness

What are key customer motivations

What are the large cost components

What are the mobility barriersAnalyse the value chain for

weaknesses


ANALYSE PDA STRUCTUREANALYSE PDA STRUCTURE

Generate a SWOT analysis, from Sharp’s point of view of PDA’sKey Success FactorsOther Assets & Competencies

Consider the Competition as a Strategic Group


A WELL DESERVED…A WELL DESERVED…BREAK!BREAK!


Assess Market AttractivenessAssess Market Attractiveness

Market Size (multiple segments)Volume GrowthCompetitive IntensityProfitability/Vulnerability

1.2.3.

10-7 6-3 2-1


POPULATION DENSITYPOPULATION DENSITY

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

CH

INA

US

A

BR

AZ

IL

JA

PA

N

COUNTRY COMPARISONS: UK

AXIS ABUSINESS STRATEGY

TECHNICAL CAPABILITY

SCORE 1-51 (lowest) 5 (highest)

1. Entrepreneurial Out of the Box Spirit and Thinking 5

2. Similar Organizational Structures to HP 5

3. Extensive experience doing business with USA companies 5

4. Experience with Alliances 5

5. Successful “Team” players no hierarchical structures 5

6. Advanced Technology 4

7. Electronic Technology capabilities- with alliances 4

8. Global thinking versus Insular (global being 5) 5

9. Good USA Relations 5

10. Open and Culturally sensitive to Doing business with UScorporations

5

11. High risk takers versus conservative (risk being 5) 5

12. Fluent English capabilities (5 fluent) 5

13. Sensitive to using Home country language (5 being not sensitive) 5

TOTAL 63AXIS B

ECONOMIC, POLITICAL& FINANCIAL STABILITY


1. Democratic Government with Record of Business Support 5

2. Stable Economy and Growth 4

3 Venture Capital Market 4

4. Low Government interference in Economy 5

5. Low level of interference of Government in Business Decisions 5

6. Stable Currency- well valued 4

7. Good Reserves/Balance of Payments 48. Good Educational System 5 TOTAL 36

UKUK

“4” Advanced Technology

“4” Stable Economy & Growth

“4”Venture Capital Market

PRODUCT/MARKET PRODUCT/MARKET ATTRACTIVENESSATTRACTIVENESS


COUNTRY COMPARISONS: GERMANY




1. Entrepreneurial Out of the Box Spirit and Thinking 3

2. Similar Organizational Structures to HP 3



5. Successful “Team” players no hierarchical structures 2


7. Electronic Technology capabilities- with alliances 5


9. Good USA Relations 4


5


12. Fluent English capabilities (5 fluent) 4


TOTAL 50AXIS B










GERMANY GERMANY



“3” Entrepreneurial Out of Box

Spirit/Similar Organizational

Structures/ High Risk Takers

“2”Successful Team Players

COUNTRY COMPARISONS: CZECH REPUBLIC




1. Entrepreneurial Out of the Box Sp irit and Thinking 4

2. Similar Organizat ional Structures to HP 3



5. Successful “Team” players no hierarch ical structures 3


7. Electronic Technology capabilit ies- with alliances 4


9. Good USA Relat ions 3


4


12. Fluent English capabilit ies (5 fluent) 4


TOTAL 44AXIS B











CZECH REPUBLICCZECH REPUBLIC


100

1

50 140 30 20 10

50 G

SWIT

SW

FI

FR

SP

UK

NETH

IRE

GER

SWITZ

SWED

P

FIN

ITAL

FRSP

Cz

VERYINTERESTING

SOMEWHATINTERESTING

w/risks

INTERESTING LEASTINTERESTING

Size of square determined by GDPper capita

EUROPEAN EUROPEAN COUNTRY COUNTRY COMPARISONCOMPARISON




Analyse Your Relative StrengthsAnalyse Your Relative Strengths

Product AdvantageMarket ImageAbility to Supply

Set Scoring CriteriaUse Judgement to Assign

WeightsScore All Key Competitors

10-7 6-3 2-1

1.2.3.


TARGETING SCA’STARGETING SCA’S

Generate a Competitor MatrixIdentify Weaknesses, Expose

Differences

Determine Competitive Advantage

List Suggested Strategies


Competitive MatrixCompetitive Matrix

Relative Competitive PositionM

ark

et

att

racti

ven

ess

100

10

0

MARKET SHAREMARKET SHARE

PRODUCTSPRODUCTS

PRICEPRICE

PROMOPROMO

CHANNELCHANNEL

COSTCOST

PRODUCTIONPRODUCTION

R&DR&D

PERSONNELPERSONNEL

INVESTMENTINVESTMENT

WORKING CAPITALWORKING CAPITAL




ark

et

att

racti

ven

ess

100

10

0


PRODUCTSPRODUCTS

PRICEPRICE

PROMOPROMO

CHANNELCHANNEL

COSTCOST


R&DR&D

PERSONNELPERSONNEL




FOR NEXT SESSIONFOR NEXT SESSION

WINER CHAPTER 6AAKER CHAPTER 3DEVELOP A COMPETITIVE MATRIX

FOR SHARP OR YOUR COMPANY

the johnson agency 1 competitor analysis “induce your competitors not to invest in those products,...

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