Competitive Analysis

Marketing Strategy                                 

Competitor means any person or entity which is a rival against another.  In business, it is a company in the same or a similar industry which offers a similar product or service.

Every business has competition. Even a small business needs to compete with much larger companies. The presence of one or more competitors can reduce the prices of goods and services as the companies attempt to gain a larger market share.

Any business plan needs to provide full details about its competitors. The purpose of the competitive analysis is to determine and understand the strengths and weaknesses of the competitors and their position within the market.

Strategies that will provide a business person with a distinct advantage, the barriers that can be developed in order to prevent competition from entering his market, and any weaknesses that can be exploited within the product development cycle.

The first step in a competitor analysis is to identify the current and potential competition. It also forms an important input into the process of identifying and selecting strategic alternatives.

One approach is to attempt to exploit a competitor’s weakness in an area where the firm has an existing or developing strength. Acknowledging competitor strength is also important so it can be bypassed or neutralized.

The marketing strategist should concentrate upon sales, market share, cost and profit levels and how they appear to be changing over time.

Knowledge of a competitor’s weaknesses can often be used to great advantage by an astute marketing strategist.

Aiyan Thiruvalluvar says

நெடும்புனலுள் வெல்லும் முதலை அடும்புனலின்

நீங்கின் அதனைப் பிற. (495)

गहरे जल में मगर की, अन्यों पर हो जीत ।
जल से बाहर अन्य सब, पावें जय विपरीत ॥ (४९५)

Explanation by Scholars: 

In deep water, a crocodile will conquer all other animals. But if it leaves the water, other animals will conquer it.

தண்ணீரில் இருக்கும் வரையில்தான் முதலைக்குப் பலம்.   தண்ணீரை விட்டு வெளியே வந்துவிட்டால் ஒரு சாதாரண உயிர்கூட அதனை விரட்டி விடும்.