Discuss the need to understand competitors as well as customers through competitor analysis

Two steps must be taken in order to deal effectively with competitors and their strategies: 1. Print Need help? Realize the need for balancing customer and competitor organizations in order to become a truly market-centered organization. Types of Benchmarking: Competitive — organization is compared to direct competitors or those who are selling to the same customer base.

Its real competitors were software encyclopedias and the Internet. Find out how they compare to yours. British Airways practices customer intimacy with select frequent flyers 20 Hypothetical Market Structure 21 Competitive Positions Competitive Strategy Expanding the total demand Finding new users Discovering and promoting new product uses Encouraging greater product usage Protecting market share Many considerations Continuous innovation Expanding market share Profitability rises with market share Competitive Positions Market Leader Market Challenger Market Follower Market Nicher 22 Competitive Strategy WD has a knack for developing new uses for its product.

For instance, when customers say your prices are higher than the competition they may just be trying to negotiate a better deal. Once you have grouped your competitors, you can start to analyze their strategies and identify the areas where they are most vulnerable.

The market leader is interested in finding ways to expand the total market because it will benefit from any increased sales.

importance of competitor analysis in strategic planning

Phone them to ask for a copy of their brochure or get one of your staff or a friend to drop by and pick up their marketing literature. What other brands have adopted a similar strategy? A competitor's strengths and weaknesses are usually based on the presence and absence of key assets and skills needed to compete in the market.

Learn more about researching your market. Once you've established the key assets and skills necessary to succeed in this business and have defined your distinct competitive advantage, you need to communicate them in a strategic form that will attract market share as well as defend it.

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Understand your market and competitors