Competitor Analysis

Question 1

on what level is the competitor analysis done?

Answer 1

on either brand or industry level (so either competing for the same customers or competing in the same industry)

Question 2

define the term direct competitors, indirect competitors and replacement competitors

Answer 2

direct = very similar or same products
indirect = very similar or same products, but in a different way (e.g. online)
replacement = substitute products

Question 3

what is the most important instruction when analysing competition?

Answer 3

not to go with what they tell you on their website (it might just be industry average, and they present it as their competitive advantage)

Question 4

define the term Critical or Key Success Factors. how can they be found?

Answer 4

CSF are common factors among successful companies.

can be found via top-down (stating factors, finding firms) or bottom-up (stating factors of each, finding commonalities)

Question 5

how can we get data on competitors and industry? (3 for primary, 4 for secondary)

Answer 5

primary 
1. market research
2. distribution channels
3. conferneces, meetings
secondary 
1. databases
2. competitor websites
3. business cases
4. newspapers

Question 6

define the term perceptual mapping

Answer 6

= visual represenation of consumer perceptions and preferences

Question 7

state four different types of perceptual mapping

Answer 7

1. two-dimensional (two factors)
2. multi-dimensional (more than two factors)
3. interbrand differentiation (similarities between specific brands)
4. spidergrams

Question 8

state the 3 steps of competitive benchmarking

Answer 8

1. identify a key area of competitive weakness within your company
2. identify a benchmark company
3. track the benchmark company’s advantage

Question 9

state 5 types of bechmarking

Answer 9

1. historical (current VS past performance)
2. internal (performance btween depts)
3. competitive (our VS direct competitor’s performance)
4. functional (our VS industry’s performance)
5. generic (our VS best practices in industry’s performance)

Question 10

define the term Key Performance Indicator (also Benchmark Indicator)

Answer 10

= performance variables used to measure factors that are crucial for success

Question 11

state 5 types of KPIs and examples for 3 of them

Answer 11

1. Financial
   - —- net profit margin
   - —- revenue growth rate
   - —– EBITDA
2. Customer
   - —– net promoter score = likeness of recommending
   - —– customer satisfaction index = ACSI
   - —– customer retention rate
3. Operational
4. Employee
5. Marketing & Sales
   - —– online share of voice
   - —– brand equity
   - —– market share