BUS 596 - Comtetitive Strategy : Chapter 3

Competitor Analysis Framework

There are four key aspects of a competitor in the Porter’s framework for analysis competitors:

1. Competitor's objectives

2. Competitor's assumptions

3. Competitor's strategy

4. Competitor's capabilities

The competitor drives the objectives and assumptions.
And, the competitor is capable of doing strategy and capabilities.
These components can be described as shown in the following diagram:

  

Competitor Analysis Components

A competitor analysis should include the more important existing competitors as well as potential competitors.

What drives the competitor   What the competitor is doing or is capable of doing Objectives Strategy Competitor Response Profile Assumptions Resources & Capabilities

BUS 596 - Comtetitive Strategy : Chapter 1

Chapter 1: The structural analysis of Industries

 

To determine the strength of the competitive forces and hence industry profitability is the key Structural features of industries.

To find a best position in the industry so the company can be the best defend itself against these competitive forces s the goal of competitive strategy for a business in an industry.

How to developing strategy? Porter defined the key is to delve below the surface and analyze these sources of each.

BUS 596 - Comtetitive Strategy : Introduction

Professor Michael Porter works at the Institute of Strategy and Competitiveness at Harvard Business School. He has been recognized an authority on competition and competitive strategy.  He published his book Competitive Strategy in 1980 and soon he became famous on many business studies and MBA programmers around the world.

In his book, there are three parts to describe “Strategy and Competitiveness”: 1. General Analytical Techniques, 2, Generic Industry Environments and 3.Strategic Decisions.

In Part I, Porter showed a comprehensive framework for analyzing the structure of an industry and its competition. In Part II, the book presented how the analysis from Part 1. The analysis can be used to develop a competitive strategy. The part III, There is some of the major strategic decisions organizations need to challenge: increase capacity, enter new markets or vertically integrate.