What Are the Different Types of Online Competitor Analysis?

Competitor analysis is one of the strategic analysis methods. Analyze the current situation and future trends of competitors. The contents include: (1) identifying existing direct competitors and potential competitors; (2) collecting information and establishing a database related to competitors; (3) analyzing the strategic intentions of competitors and strategies at all levels; ( 4) Identify the strengths and weaknesses of competitors; (5) Insight into the strategies that competitors may adopt in the future and the competition responses they may make. ^[1]

Competitor analysis

Its purpose is to accurately judge the strategic positioning and development direction of competitors, and predict the future strategy of competitors based on this, accurately evaluate the competitors 'response to the strategic behavior of the organization, and estimate the competitors' performance in achieving sustainable competitive advantages. ability. Analyzing competitors is an important way to determine your organization's strategic position in the industry.

Competitor analysis generally includes the following six items and steps.

1. Identify competitors to the business. Identify

To participate in market competition, companies must not only understand who their customers are, but also understand who their competitors are. On the surface, identifying competitors is a very simple task. However, due to the complexity, hierarchy, and variability of demand, the rapid development and evolution of technology, and the development of industries, companies in the market are facing complex competition. Situation, a company may be defeated by emerging competitors or eliminated due to the emergence of new technologies and changes in demand. Enterprises must pay close attention to changes in the competitive environment and understand their competitive position and their strengths and weaknesses.

We can divide the types of competitors from different angles:

I. From an industry perspective, the competitors of an enterprise are

1. Existing manufacturers: refer to other existing manufacturers in the industry that produce the same products as enterprises, and these manufacturers are direct competitors of the enterprise.

2. Potential entrants: When the prospect of an industry is optimistic and profitable, it will attract new competitors, increase the industry's new production capacity, and demand a new division of market share and major resources. In addition, some large-scale diversified companies often use their resource advantages to invade from one industry to another. The addition of new enterprises may lead to lower product prices and lower profits.

3 Substitute manufacturers: Other products that have the same functions as a product and can meet the same needs and have different properties, are substitutes. With the development of science and technology, there will be more and more alternatives, and all enterprises in one industry will face competition with enterprises in other industries that produce alternatives.

From the market perspective, the competitors of the company are

1. Brand competitors: Enterprises refer to other companies in the same industry that provide similar products or services to the same customers at similar prices as brand competitors. For example, in the home air-conditioning market, the relationship between manufacturers such as Gree air-conditioning, Haier air-conditioning, and Mitsubishi air-conditioning is produced.

The products of brand competitors have high mutual substitution, so the competition is very fierce, and each company takes the cultivation of customer brand loyalty as an important means to compete for customers.

2. Industry competitors: Enterprises refer to companies that provide the same or similar products but differ in specifications, models, and styles as industry competitors. There is a competitive relationship between all companies in the same industry competing for the market. Such as the relationship between manufacturers of household air conditioners and central air conditioners, manufacturers of high-end cars and manufacturers of mid-range cars.

3 Need competitors: Companies that provide different kinds of products but meet and fulfill the same needs of consumers are called need competitors. For example, airlines, railway passenger companies, and long-distance passenger car companies can meet the needs of consumers when traveling. When the train ticket price rises, the number of passengers by plane and car may increase, competing with each other to meet the same needs of consumers.

4 Consumer competitors: Companies that provide different products to meet the different wishes of consumers but whose target consumers are the same are called consumer competitors. For example, after the income level of many consumers increases, they can use their money for tourism, as well as for cars or real estate. Therefore, there is a competitive relationship between these companies competing for the purchasing power of consumers. have a great impact.

3. From the competitive position of the company, the types of competitors are:

1. Market leader (leader): refers to the enterprise that has the largest market share in the product market of an industry. Generally speaking, there are one or more market leaders in most industries. They are in the leading position in the industry, and every move will directly affect the market share of other manufacturers in the same industry. Their marketing strategy has become a challenge for other companies Or avoidance. For example, Kodak is the leader of the photography market, Procter & Gamble is the leader of the daily necessities market, and Coca-Cola is the leader of the soft drink market. Market leaders usually dominate product development, price changes, distribution channels, and promotional power. The market leader's status is formed in the competition, but it is not fixed.

2. Market challenger (challenger): refers to an enterprise in a secondary position (second, third or even lower) in the industry, but also has a comprehensive or partial attack on market leaders. For example, Fuji is a challenger in the photography market, Colgate is a challenger in the daily necessities market, and Pepsi is a challenger in the soft drink market. Market challengers often try to increase market share and improve market position through active competition.

3 Market follower (follower): Refers to a company that has a secondary position in the industry and stays in a secondary position, and strategically follows the market leader. There are a large number of followers in the real market. The most important feature of market followers is following. In terms of technology, it is not a pioneer and first user of new technology, but a learner and improver. In terms of marketing, instead of being a path opener for market cultivation, we are hitchhiking to reduce risks and costs. Market followers continuously improve their skills and grow by observing, learning, drawing on, and imitating the behavior of market leaders.

4 Market niches (nichers): Most of the relatively small and medium-sized companies in the industry, they focus on some small parts of the market that are ignored by large companies, in these small markets through professional operations to obtain the maximum Benefits, survival and development in the gaps between large enterprises, play a role in filling the gaps and filling the gaps to meet customer needs. Market vacancies earn space for development by producing and providing some distinctive products and services, and may even develop into "giants in small markets."

To sum up, enterprises should identify their competitors from different perspectives and pay attention to changes in the competitive situation in order to better adapt to and win competition.

Identify competitors' goals

After identifying the main competitors, the question that the business operator should answer next is: What does each competitor seek in the market? What is the motivation for competitor action? The original operator speculated that all competitors were pursuing profit maximization and taking various actions as a starting point. However, this assumption is too simple. Different companies have different emphasis on long-term and short-term interests. Some competitors tend to get "satisfactory" profits rather than "maximum profits". Although sometimes they can make more profits through some other strategies, they have their own profit goals, which are met as long as they reach the set goals.

In other words, although competitors are always concerned about the profits of their companies, they often do not take profits as the sole or primary goal. Behind the profit target, the competitor's target is a combination of a series of targets, and each of these target competitors has its own emphasis. Therefore, we should understand the importance weight given by competitors to the possibility of profitability, growth of market share, capital flow, technology leadership, service leadership and other goals. Understanding this competitor's weighted target combination, we can understand the competitor's dissatisfaction with the financial situation, how he will respond to various types of competitive attacks, and so on. For example, a competitor who pursues a low-cost lead responds more strongly to the cost reduction of its competitors due to technological breakthroughs than the increase in advertising by the same competitor.

Companies must track their competitors' goals for entering new product segments. If a competitor is found to open up a new market segment, this may be a development opportunity for the company; if a company finds that the competitor has begun to enter the market segment operated by the company, it means that the company will face new competition and challenges . With regard to these market competition dynamics, if the company knows well, it can strive for initiative and be prepared.

Analysis of advantages and disadvantages of market competitors

The necessity of competitor advantage and disadvantage analysis

In market competition, companies need to analyze the strengths and weaknesses of competitors, so as to know themselves and others, in order to formulate the correct market competition strategy in order to avoid its sharpness, attack its weaknesses, and surprise, and use the competitors' weaknesses to win the market Competitive advantages to implement corporate marketing goals.

Contents of Competitor Advantage and Disadvantage Analysis

(1) Product. Competitive products' position in the market; marketability of products; and breadth and depth of product lines.

(2) Sales channels. The breadth and depth of the sales channels of competing companies; the efficiency and strength of the sales channels; and the service capabilities of the sales channels.

(3) Marketing. Competitive enterprise marketing mix level; market research and new product development capabilities; sales team training and skills.

(4) Production and management. Production scale and production cost level of competitors; technological advancement and flexibility of facilities and equipment; patents and know-how; expansion of production capacity; quality control and cost control; location advantages; employee status; sources and costs of raw materials; Degree of vertical integration.

(5) R & D capabilities. Competitive enterprises' internal research and development capabilities in product, technology, basic research, imitation, etc .; the quality and skills of research and development personnel in terms of creativity, reliability, and simplification.

(6) Funding strength. Competitive companies' capital structure; financing ability; cash flow; credibility; financial ratio; financial management ability.

(7) Organization. The consistency of the values of organizational members and the clarity of the goals of the competing enterprises; the consistency of the organizational structure and corporate strategies; the effectiveness of the organizational structure and information transmission; the degree of adaptability and response of the organization to changes in environmental factors;

(8) Management ability. Competitive enterprise managers' leadership qualities and motivation capabilities; coordination ability; managerial expertise; flexibility, adaptability, and foresight of management decisions.

Identify competitors' strategies

The more similar strategies companies adopt, the more fierce they will be. In most industries, competitors can be divided into different strategic groups based on the main strategies adopted. For example, among the major electrical industries in the United States, General Electric Company, Hewlett-Packard Company, and Xerox Corporation provide a variety of medium-priced appliances, so they can be divided into a unified strategic group.

According to the division of strategic groups, two points can be summarized: First, the difficulty of entering each strategic group is different. Generally small enterprises are suitable for entering groups with lower investment and reputation, because such groups trade in; while large enterprises with strong strengths may consider entering into highly competitive groups. Second, when a company decides to enter a certain strategic group, it must first make clear who is the main competitor, and then decide its own competitive strategy.

In addition to fierce competition within the unified strategic group, there is also competition among different strategic groups. Because: (1) some strategic groups may have the same target customers; (2) customers may not be able to distinguish the products of different strategic groups, such as the difference between high-end products and mid-range products; (3) belong to a certain Enterprises in strategic groups may change their strategies and enter another strategic group. For example, companies that provide high-end housing may switch to ordinary housing.

Competitive market behavior

(A) slow competitors

Some competitors have not responded strongly to market competition measures and have been slow to move. This may be because competitors are limited by their ability in terms of capital, scale, technology, etc., and they cannot respond appropriately. It may also be because competitors are too confident in their competitiveness and disdain to take reactive actions; it may also be Because competitors did not pay enough attention to market competition measures, they failed to capture information on changes in market competition in a timely manner.

(2) Selective competitors

Some competitors have different responses to different market competition measures. For example, most competing companies are always responsive to price competition measures such as price reductions, tend to respond strongly, and strive to take retaliation measures as soon as possible to counterattack. Non-price competition measures do not pay much attention, and do not think they pose a direct threat to themselves.

(3) Strongly reactive competitors

Competitive companies are very sensitive to changes in market competition factors. Once they are challenged by the competition, they will respond quickly to the market with intense retaliation and counterattacks. They will inevitably put their competitors who are challenged to death quickly. Such reprisal measures are often comprehensive, deadly, and even reckless, and will never end without achieving their goals. These strongly reactive competitors are usually market leaders with some competitive advantages. Generally, enterprises are dared or unwilling to challenge their authority in the market, and try to avoid direct confrontation with them.

(IV) Irregular competitors

The response of such competing companies to market competition is usually random, and they often do not follow the rules, making people feel unpredictable. For example, irregular competitors may or may not respond to changes in market competition at some point; they may respond quickly or slowly; their responses may be violent or they may be Gentle.