Lesson 3 - Competitor Analysis and PESTLE Analysis.pptx

Lesson 3 - Competitor Analysis and PESTLE Analysis

1. COMPETITOR ANALYSIS

2. DEFINITION Competitor analysis is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats.

3. COMPETITOR PROFILING Background Financials Products Marketing Facilities Personnel Corporate strategies

4. BACKGROUND Location of offices and plants. History - key personalities, dates, events, and trends. Ownership, corporate governance, and organizational structure.

5. FINANCIALS P-E ratios, dividend policy, and profitability. Various financial ratios, liquidity, and cash flow. Profit growth profile.

6. PRODUCTS Products offered and product portfolio balance. New products developed, new product success rate and R&D strengths. Brands, brand loyalty and brand awareness. Patents and licenses. Quality control conformance.

7. MARKETING Segments served, market shares, customer base and growth rate. Promotional mix, promotional budgets, advertising themes, ad agency used, sales force success rate and online promotional strategy. Distribution channels used and geographical coverage. Pricing, discounts and allowances.

8. FACILITIES Plant capacity, capacity utilization rate, age of plant, plant efficiency and capital investment. Location and shipping logistics.

9. PERSONNEL Number of employees and skill sets. Strength of management and management style. Compensation, benefits, employee morale and retention rates.

10. CORPORATE STRATEGIES Objectives, mission statement, growth plans, acquisitions, and divestitures

11. ANALYSIS OF NEW COMPETITOR Companies competing in a related product/market. Companies using related technologies. Companies already targeting your prime market segment but with unrelated products. Companies from other geographical areas and with similar products. New start-up companies organized by former employees and/or managers of existing companies.

12. Direct and Indirect Competitors Direct competitors Indirect competitors Sell the same products and services Sell different products and services that can act as a substitute for your product Products compete on features, pricing, and quality Products compete on convenience, availability, and brand recognition, and prices may vary significantly Same ideal customer in a target market Meet the same needs and goals Examples: Pepsi and Coca-Cola, McDonald’s and Burger King Examples: Coca-Cola and Starbucks, online learning platforms and traditional learning institutions

13. THANK YOU