Competitor analysis - The dimensions of competitor analysis

5 important questions on Competitor analysis - The dimensions of competitor analysis

What should be analysed on medium and longer term?

Medium term: firms within the same strategic group
Longer term: Industry as a whole

What are the targets of the competitor analysis?

- Innermost are the direct competitors within the strategic group
- Next come companies within the industry that are driven to overcome the entry barriers to the strategic group
- The outermost potential entrants and substitutes

How gives an understanding in current and future objectives guidance?

1. Goals can idicate where the company is intending to develop and in which markets
2. Give guide to the intensity
3. Type of trade-off
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What should be addressed assessing competitors' current strategies and activites?

- Selection of target markets, the strategic focus, the supporting marketing mix

- Value chain

Why is an analysis of the value chain important?

  1. It can reveal cost advantages
  2. Value it can add in the customers' eyes

The question on the page originate from the summary of the following study material:

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