WHY BOTHER TO ANALYZE COMPETITORS?
Some businesses think it is best to get on with their own plans and ignore the competition. Others become obsessed with tracking the actions of competitors (often using underhand or illegal methods).
Many businesses are happy simply to track the competition, copying their moves and reacting to changes.
Competitor analysis has several important roles in strategic planning:
To help management understand their competitive advantages/disadvantages relative to competitors
To generate understanding of competitors‟ past, present (and most importantly) future strategies
To provide an informed basis to develop strategies to achieve competitive advantage in the future
To help forecast the returns that may be made from future investments (e.g. how will competitors respond to a new product or pricing strategy?
Some businesses think it is best to get on with their own plans and ignore the competition. Others become obsessed with tracking the actions of competitors (often using underhand or illegal methods).
Many businesses are happy simply to track the competition, copying their moves and reacting to changes.
Competitor analysis has several important roles in strategic planning:
To help management understand their competitive advantages/disadvantages relative to competitors
To generate understanding of competitors‟ past, present (and most importantly) future strategies
To provide an informed basis to develop strategies to achieve competitive advantage in the future
To help forecast the returns that may be made from future investments (e.g. how will competitors respond to a new product or pricing strategy?