1. LIBR 230 WEEK 6 Competitor
Analysis

2. WHY COMPETITOR ANALYSIS?
 Use current and past information about competitors to predict
future behaviors
 Identify competitors’ future plans and strategies
 Predict reactions to competitive initiatives
 Determine match between a competitor’s strategy and it’s
capabilities
 Understand a competitor’s liabilities or weaknesses (as well as
assets and strengths)
 Puts you in a better position to craft defensive and offensive
strategies

3. PORTER’S 4 CORNERS

4. UNDERSTANDING/PREDICTING
COMPETITIVE RESPONSE IS THE GOAL
 What is the competitor’s real focus (versus a stated one)?
 What likely moves or shifts will the competitor make?
 Where are the competitor’s blind spots or weak assumptions?
 What will be likely responses to market changes or
initiatives?

5. RATIONALE?
Superior knowledge
of competitors
offers a legitimate
competitive
advantage
 By revealing
weaknesses
 Anticipating responses
 Encourages strategic
agility

6. STRENGTHS
 Encourages confident,
aggressive decision
making
 Competitive
knowledge helps
strengthen strategy
 Encourages cross-
function sharing
 Encourages efficiency
especially with
regards to strategy

7. WEAKNESSES
 Oftentimes becomes a
cornerstone of strategy
 Reactionary
 Comparisons to
competitors are
meaningless in the
absence of customer
value
 Blinds companies to
innovation and new
approaches outside of
competitive responses

8. HOW IS IT DONE? STEP ONE…
Who are your Most valuable info
competitors? source? Customers!
Who are your future
competitors?
Research them!

9. PORTER’S
4 CORNERS
• Based upon:
• B a c k g ro un d
• S t a f fi n g / H R
• O r g a n i z a t io n a l
• S o c i o p o l i t ic a l
• Financial
• P r o d uct s
• Operations
• Te c h n o lo g y
• S t r a te g y
• M a r ket i n g
• Management
• C u s to me r
perceptions and
value analysis

10. PRESENT THE DATA AND DEVELOP THE
STRATEGY
 Comparison grids are most common and useful
 Strategic implications:
 Rules of engagement
 Leverage company’s strength while exploiting competitor’s
weaknesses
 Continue to monitor! Never ending process/cycle…