Competitor Analysis

Question 1

what is a competitor and complement

Answer 1

A competitor if customers value your offering less when they have the other firms offering than when they have your offering alone

Your product behaves as an alternative to a competitors product your increase In market share will direct decrease your competitors share

Firm is a competitor if customer value your offering more when they have the other firms offering than when they have your offering alone

Missing one
o The supplier perspective! As we always think from the customers point of view only

Question 2

Competitor and complementor the supply side

Answer 2

Firm is your competitor if it is less attractive for a supplier to provide resources to you when its also supplying the other player than when its supplying you alone

Firm is complementor if its more attractive for a supplier to provide resources to you when its also supplying the other player than when its supplying you alone

Question 3

Steps to competitor analysis

Answer 3

1. Identify the company’s competitor
   i. Industry vs market view not one is better but depends on situation
2. Assessing competitors objectives, strategies, strengths, weaknesses, and reaction patterns
3. Selecting which competitors to attack or avoid
   - Based on assessing the above you can see weather to attack competitor or not

Question 4

Industry vs Market POV for identifying competitors

Answer 4

Industry point of view
o Firms with the same product class
o Ex: McDonalds and Wendy’s

Market point of view
o Companies trying to satisfy the same customer need
o Ex; McDonald’s and Grocery store

Question 5

Market positions on matrix

Answer 5

Market leader
– largest market share
* Ex; McDonalds

Market Challenger
– many not be trying to gain market share to unseat the leaser,,,, or often may not
* Ex: Burger King

Market Follower
– tend to let other lead while they try to mimic those above them
* Just mimic others in the market
* Ex: Sonic or A& W
Market nicher -
-Do not compete with the same customer that market leaders
* Creating experience and creating value
* Ex: 5 Guys

Question 6

How do you evaluate competitive strength?

Answer 6

UGC
- Use social media to ask customers what they like about social media
o Use the reviews of customers and classify them

Perceptual maps