Marketing Strategy
& Competitive Positioning
6th edition
Chapter 5
Competitor Analysis
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Competitive Benchmarking
• Measure company’s strategies and operations
against the ‘best-in-class’ orgs.
– Identify who to benchmark against
– Identify what aspects of business to
benchmark
– Collect relevant data
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Competitor Analysis
• Evaluate direct competitors within the strategic
group
• Evaluate companies within the industry
• Evaluate potential entrants & substitutes
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Figure 5.1
The targets of competitor analysis
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Figure 5.2
The components of competitor analysis
Source: adapted from Lehmann and Winer (1991).
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Figure 5.3
Competitor objectives
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Assess competitors’ current & future
objs
• Guidance to strategy development on:
– Where the co is intending to develop and in
which markets – local or international
• Guidance to intensity of competitor activity
and rivalry – mkt leader, increase mkt share,
mkt follower, new ventures, growth objs,
• Indication of future goals – look at ownership
structure of competitor
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Figure 5.4
Competitor strategies
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Assess competitors’ current
strategies and activities
• Target mkts – mkt segment, customers, pdts & services
offered, prices charged, ads & ad media
• Strategic focus – to create competitive advantage by:
– Lowering costs relative to competitors
– Provide valued uniqueness, differentiated products and
services that customers are willing to pay for
• Marketing mix – analysis of competitors customers,
pricing strategies, ad message & media, distribution
strengths & weaknesses
• Marketing org structure – how competitor respond to
environmental change or competitive action, position of
marketing in the org – assess using value chain analysis
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Figure 5.5
The value chain and direct product costing
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Figure 5.6
Competitor resources
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Assess Competitors’ Capabilities
• Ability to innovate – technical resources (new
technology), creative & technical HR, funding
for R & D
• Production capacity & utilisation – physical
resources (equipment & factories) & HR skills
• Marketing ability – marketing mix ability,
marketing team & funding for marketing
activity
• Financial resources – funds for investment &
expansion
• Management ability - Copyright © 2017, 2008, 2003 Pearson education, Inc. All Rights Reserved
Figure 5.7
Competitor capabilities
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Figure 5.8
Future competitor strategies
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Figure 5.9
Good competitors
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Figure 5.10
Sources of competitor information
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Figure 5.11
Learning from competitors
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