Competition in the Golf Equipment Industry in 2008
Competition in the Golf Equipment Industry in 2008
MAIN ASPECTS OF COMPETITOR ANALYSIS
The key objectives in competitor analysis are to develop a greater understanding of what competitors have in place in terms of resources and capabilities, what they plan to do in their businesses, and how the competitors may react to various situations in reaction to what the firm does.
Michael Porter has defined a competitor analysis framework that focused on four key aspects: competitors objectives, competitors assumptions, competitors strategy, and competitors resources and capabilities.
The competitors objectives and assumptions drive the competitor while the competitors strategy and resources and capabilities define what the competitor is doing or is capable of doing. Together, these four aspects define a competitor response profile which gives the firm an understanding of what actions a competitor may take.
Competitors Objectives
In competitor analysis there are two key factors to note in building knowledge of a competitors objectives. The first factor is to know the actual objectives of a competitor. This could range from building market share in a specific market or overall business, entering a new market or even just maintaining profitability.
The second factor is to know if the competitor is actually achieving their stated (or sometimes unstated but implied) objectives. Looking at these two factors will provide a firm with an opinion on a competitors potential actions to changes in the sector.
Some of the questions to ask for the competitors strategic objectives are: What are the short-term and long-term objectives? What are the financial objectives? Where is the competitor investing?
Competitors Assumptions
Another key aspect in competitor analysis is an understanding of competitors assumptions about the overall market (trends in the market, products, and consumers). For example, competitors could define their actions based on what their assumptions are on the growth of the market.
Some questions to address for this aspect include: What is the competitors viewpoint on the market and development? Who are the key consumers or clients who the competitor feels will be most profitable?
Competitors Strategy
A third aspect in competitor analysis is the understanding of a competitors strategy. A number of questions that need to be addressed are: What are the strategy and plans of competitors in their key markets? Which markets and products will the competitor focus on?
Competitors Resources and Capabilities
Finally,