Competitive analysis

The basis of the competitive analysis strategy is to understand and to beat competition. However, consultants often define the competition in a too narrow sense as if it takes place only among direct competitors present on the market today.

Competition for profits extends far beyond companies competing in any industry. It also comprises four other competitive forces: customers, suppliers, prospective new companies and product substitutes. A complex competitive environment of a business derived from analysis of all five competitive forces determines the industry structure and reflects the nature of competitor relations within the industry.

What we do

Industry analysis

1. ANALYSIS OF PRODUCTS & SERVICES, boundaries with other industries, scale of competition.
2. IDENTIFICATION OF KEY PLAYERS – buyers and suppliers, competitors, alternative products and services, potential new players.
3. INDUSTRY ASPECTS that may be affected by competitors, new entrants or client’s organisation.
4. RISK ASSESSMENT - study of old and future positive and negative changes that may potentially arise in relation to a competition.
5. SYSTEM TEST ANALYSIS and defining an industry structure of current profitability level, main forces affecting profitability, system analysis of industry in relation with long-term profitability.
6. EVALUATION OF FUNDAMENTAL FACTORS behind the competition for defining strong and weak ones and understanding why.
7. ANALYSIS OF MORE PROFITABLE PLAYERS in relation to the main industry forces.

ENVIRONMENT ANALYSIS

In the course of the competitive analysis, along with the five competitive forces mentioned above, there is the sixth one – the relative influence of other stakeholders (involved parties). These parties can affect industry marginality and business strategy by means of political, legal and social influence. The involved parties can include governments, regulatory and fiscal authorities, ecological or public groups and organizations, trade unions.

Factors that will be analysed: