Compose a 1750 words assignment on a critical of competitor analysis concepts. Needs to be plagiarism free! This review attempts to find the common ground or differences in approach between the authors and checks them against the background of the strategic needs of organizations for sustaining competitive advantage.
maintaining and improving profitability targets. In the face of fierce competition, the market place is merciless in changing the fortunes of companies. If firms ignore or neglect strategic moves by competitors, they can find their market share and profitability disappear in a quick time. Competition can be in many forms such as new entrants, new products/services, more economical processes that offer cheaper alternatives to customers, new marketing or distribution channels, newer strategic associations or markets, etc. While the challenge of keeping track of so many variables may be daunting, it is comforting to remember that generally, each business has its own limited set of rivals. Largely, this depends upon its own profile of size & operations. It is this universe of potential rivals that is important to a firm’s competitive position.
According to Porter, “Strategy is an internally consistent configuration of activities that distinguishes a firm from its rivals” (Porter, M E. 2004, p.vi). Porter’s theory identifies a firm as one based on activities and points out that it is these activities that create opportunities for a firm to offer value to a customer (Porter, M E. 2004). To this extent, analysis of a firm’s own or it’s rival’s activities can be considered as essential as strategic to a firm’s competitive advantage. The question then is ‘when or how often should one conduct such an analysis?’ and the answer should be that it must be an on-going process in view of the constantly emerging competitors’ challenges.
Competitor analysis is the management .strategy that helps a firm to continuously keep track of existing and potential competitors, their strategies and their products, and to apply the knowledge to its own business interests. This is achieved through systematic information gathering, forecasting and initiating appropriate actions so as not to be taken by surprise by the competitors’ moves.