4. Competitor Analysis
Description and Purpose
The purpose of competitor analysis is to provide a comprehensive picture of the strengths and weaknesses of current and potential competitors to identify opportunities and threats for your organization. Competitor analysis has four main objectives:
• Identify competitors’ future plans and strategies.
• Predict competitors’ likely reactions to competitive initiatives.
• Determine the match between a competitor’s strategy and its capabilities.
• Understand a competitor’s weaknesses.
Professor Michael Porter from Harvard University was one of the first strategists to propose a formal and systematic model to gather information about competitors (see Figure 4.1). This model encourages you to use past ...