 Competitor
analysis is critical to identifying and evaluating the sources of
strategic advantage/disadvantage underlying your profitability.
Eliminating disadvantages and identifying points of differentiation
will help lead to more sustainable value creation. This requires
- Understanding differences in customer focus, pricing,
discounting and cost to serve
- Examining competitor value propositions and how the
price/value trade-off may be being perceived differently by
customers as a result of brand, market positioning, promotion
and network
- Identifying sources of difference in unit cost
(productivity, asset utilisation, distribution, network,
maintenance and wastage)
Understanding your competitive position today is only the first
step. You also need to determine where your competitors are going in
the future and how they are likely to react to your strategies.
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