Competitor and SWOT Analysis - Module 7 Flashcards
It begins with identifying present as well as potential competitors
Competitor Analysis
TorF: Organizations
must operate within a competitive industry environment
True
TorF: Analyzing organization’s competitors helps an organization to discover its weaknesses, to identify opportunities for and threats to the organization from the industrial environment
True
It is the process of identifying businesses in your market that offer similar
products or services to yours and evaluating them based on a set of predetermined business criteria
competitor analysis
TorF: SWOT analysis will help you see your business and competitors through your customers’ eyes to pinpoint where you can improve.
False
It is a driver of an organization’s strategy and effects on how firms act or react in their sectors.
competitor analysis
TorF: competitor analysis is used to measure / assess its standing
amongst the competitors
True
A ________________ can reveal pertinent information about market saturation, business opportunities and industry best practices
competitor analysis
TorF: Competitor analysis is important for your business to stay outdated with market trends and product offerings
False
TorF: A competitor analysis will give you a better idea of what services are not available to your target customer and what areas are being neglected.
False
He stated “In some cases, you may find that you are at a competitive disadvantage, in which case you may need
to make a change in order to maintain your sales volumes”
Josh Rovner
TorF: “In other cases, you may notice that you have an disadvantage
that could enable you to make a change that increases your sales or profit.”
False
He wrote “Unbreak the System”
Josh Rovner
He states that “Understanding one’s competitors allows one to distinguish oneself from the competition, focus on the
underserved market opportunities, determine the services to offer, identify the best practices to employ, and isolate the worst practices and rotten players”
David M. M. Taffet
TorF: Competitor analysis will reveal which areas of your business, product or service need improvement
True
TorF: Competitor Analysis can show new strategic opportunities to enhance your products or services and grow your business
True
He said “Too many businesses do a competitor analysis early on, and then neglect it once their brand is established”
“Industries are
constantly changing, and each time a new company enters your space, they are doing a competitor
analysis on you. It’s important to continually evaluate your competitors.”
Colin Schacherbauer
Enumeration: Different types of competitors
- Direct Competitors
- Indirect Competitors
- Future Competitors
These are businesses that offer products identical or similar to those of the firm completing the analysis.
Direct competitors
These competitors offer close substitutes to the product the firm completing the analysis sells.
Indirect competitors
These are companies that are not yet direct or indirect competitors but could move into one of these roles at any time
Future competitors
Businesses offering identical or similar products
Direct competitors
Businesses offering close substitute products
Indirect competitors
Businesses that are not yet direct or indirect competitors but could be at any time.
Future competitors
If a firm does not have a direct competitor, it shouldn’t forget that the ____________ can be the toughest
competitor of all
status quo
Enumeration: top 10 components every competitor analysis should include
- Feature matrix
- Market share percentage
- Pricing
- Marketing
- Differentiators
- Strengths
- Weaknesses
- Geography
- Culture
- Customer reviews
Find all the features that each direct competitor’s product or service has. Keep this in a competitor insight spreadsheet to visualize how companies stack up against one another
Feature matrix
This helps to identify who your main competitors in your market
are. Don’t exclude larger competitors completely, as they have much to teach about how to succeed in your industry. Instead, practice the 80/20 rule: 80% direct competitors (companies
with similarly sized market shares) and 20% top competitors
Market share percentage
Pinpoint how much your competitors charge and where they fall on the quantity vs.
quality spectrum.
Pricing
What type of marketing strategy does each competitor employ? Look at
competitors’ websites, social media presence, the type of events they sponsor, their SEO
strategies, their taglines and current marketing campaigns.
Marketing
What makes your competitors unique, and what do they advertise as their best qualities?
Differentiators
Identify what your competitors are doing well and what works for them. Do reviews indicate they have a superior product? Do they have high brand awareness?
Strengths
Identify what each competitor could be doing better. Do they have a weak social media strategy? Do they lack an online store? Is their website outdated? This information can give you a competitive advantage.
Weaknesses
Look at where your competitors are located and the regions they service. Are they brick-and-mortar companies, or is the bulk of their business done online?
Geography
Evaluate your competitors’ objectives, employee satisfaction and company culture. Are they the type of business that advertises the year it was established, or are they modern startups? Read employee reviews for insight into company culture.
Culture
Analyze your competitors’ customer reviews, recording both pros and cons. In a 5-star system, look at 5-star, 3-star and 1-star reviews. Tip: 3-star reviews are often the most honest.
Customer reviews
He said that “Document what threats are out there that could have a negative impact on your business, and document the opportunities out there that you could take advantage of better than your competitors,”
Josh Rovner
Enumeration: Rovner’s seven-step process for conducting a competitor analysis
- Identify the products or services you want to evaluate.
- Identify every direct and indirect competitor for those products or services.
- Research all competitors in person and online.
- Document your research in a written analysis.
- Identify areas to improve your own competitiveness.
- Make the improvements you deemed appropriate or necessary.
- Measure your sales and profit based on the changes you made to determine whether they were
successful
TorF: Conduct competitive analyses routinely to stay up to
date with market supply and demand and to increase your competitive intelligence.
True
It is is a framework used to evaluate a company’s competitive position and to develop strategic planning
SWOT Analysis
TorF: Competitor Analysis assesses internal and external factors, as well as current and future potential.
False
It is designed to facilitate a realistic, fact-based, data-driven look at the strengths and
weaknesses of an organization, initiatives, or within its industry
SWOT Analysis
It is a technique for assessing the performance, competition, risk, and potential of a business, as well as part of a business such as a product line or division, an industry, or other entity
SWOT Analysis
Analysts present a SWOT analysis as a square segmented into _______________each dedicated to an element of SWOT.
four quadrants
Strengths describe what an organization excels at and what separates it from the competition: a strong
brand, loyal customer base, a strong balance sheet, unique technology, and so on
Strengths
It stop an organization from performing at its optimum level. They are areas where the
business needs to improve to remain competitive: a weak brand, higher-than-average turnover, high levels of debt, an inadequate supply chain, or lack of capital.
Weaknesses
It refer to factors that have the potential to harm an organization.
Threats
What occurs within the company serves as a great source of information for the strengths and
weaknesses categories of the SWOT analysis.
Internal
It refer to favorable external factors that could give an organization a competitive
advantage.
Opportunities
What happens outside of the company is equally as important to the success of a company as internal
factors.
External
TorF: A Competitor analysis is a great way to guide business-strategy meetings
False
TorF: A company can use a SWOT for overall business strategy sessions or for a specific segment such as marketing, production, or sales
True
