Competitive Advantage:
An advantage over a competitor is gained by offering greater values than competitor offers.
Competitor Analysis:
The process of identifying competitor, Assessing their Objective, strategies, strength and weakness and reaction pattern, and selecting which competitor to attack and avoid.
1-Identifying Competitor: Identifying Competitor would seem a simple task; As All companies can easily identify the competitors as other companies offering the same product to the same customer at the same time and same price.












Mostly companies face the much wider ranges of the competitors. Company might define their competitors as many firms are providing the same services, Pepsi cola would see itself competing against all other cold drink providing companies, they might include, coca cola, Amrat cola, RC Cola, etc
Companies must avoid competitor myopia. In competitor Myopia Company always focus the some competitors, and they do not see other companies providing same products.

Kodak oldest photographic company, seeing only Fuji Film Result: Sony, Canon etc left the Kodak behind in the digital imaging market

Company can identify their competitor industry point of view.



2-Assessing the competitors:

• Determining competitor objectives
• Identifying competitor’s strategies
• Assess their strength and weakness
• Estimating competitor reactions

Determining competitor objectives:

Each competitor has mix of objectives, The Company know the relative importance that competitor places on current market share, growth, ash flow, technological leadership and other goals. Company also must monitor its competitor’s objectives.

Identifying competitor’s strategies:
Companies can identify the competitor strategies by comparing their strategies to the other firm; Strategic group is a group of firm in an industry following the same or similar strategy.



Assessing Competitors Strength and weakness:
Marketers need to assess each competitor’s strength and weakness carefully, so they can understand easily about the competitors that what their competitors can do.
Companies normally learn about their competitor’s strength and weakness through secondary data and personal experience.


Now a days bench marking has become a powerful tool for increasing a company’s competitiveness.


Estimating Competitor Reactions:
After doing all, the company estimate the competitor reaction, that what will the competitor does. As each competitor have certain philosophy of doing business. So each competitor can react differently.
Some do not react quickly but some can react swiftly and strongly to any action.

· Example of P&G (Proctor and Gamble) does not let a new detergent easily in the market

3-Selecting competitors to attack and avoid:

There are several classes of competitors; company can focus one of them.

• Strong and weak competitors
• Close and distinct competitors
• Bad and good competitors

Most companies prefer to compete against the weak competitors; this requires fewer resources and less time. But firm may gain little.



Customer Value Analysis


Competitive Intelligence System

Achi ho gai ... wow....Alhamdo Lillah

Attached Files

Presentation Material Chapter 18, Competitor Analysis, (Book Principle of Marketing By Kotlar).doc (36.5 KB, 434 views)

__________________