The competition analysis covers each of the companies that compete with each other directly.
The company that analyzes its competitors wants to know:
- What moves the competitor, based on what their objectives for the future indicate What the competitor is doing and can do, based on what their current strategy reveals What the competitor thinks about the industry, based on what they let see their assumptions. What are the competitor's capabilities, based on what their strengths and weaknesses reflect.
In order to carry out an effective competitor analysis, it is essential to collect information and data that help the company understand the intentions of its competitors and the strategic implications derived from them. Useful information and data are gathered in competitor intelligence, that is, the set of information and data that a company collects to better understand and anticipate the objectives, strategies, assumptions and capabilities of its competitors. In order to analyze competitors, the company must gather intelligence not only about them, but also about the public policies of all countries in the world. This intelligence will allow you to understand the strategic position of foreign competitors.
Components of the competitive analysis. Source: Hitt, Hoskinsson and Ireland, p.63
Porter matrix for competitive analysis
This model is mainly aimed at identifying the response capacity of the competition to any strategy that we can develop.As is known, one of the elements that can cause the failure of a strategy is the response capacity of the competition. It is important that, in the process of developing any strategy, the capabilities and possibilities of retaliation of competitors are always kept in mind. The ideal goal is to identify strategies that cannot be imitated, followed, or neutralized by competition.
This is followed by a mini-course on strategic analysis taught by Professor Antonio Verdú, from the Miguel Hernández University of Elche, in which the most relevant elements and tools are discussed to understand the environment of organizations. (8 videos, 33 minutes)
Bibliography
- Michael A. Hitt, R., Duane Ireland, and Robert E. Hoskisson. Strategic Management: Competitiveness and Globalization. concepts and cases. Cengage Learning Editores, 2008 Marketing Publishing Center, Strategic Marketing Analysis Instruments, Ediciones Díaz de Santos, 1990
