1. Six steps
of
analysing
competiton
1.Define
Industry
structure and
characteristics
2. Identify
strategic
groups
6. Identify new
competitors
Market
5. Anticipate
actions by
competitors
3.Identify &
describe key
competitors
4. Evaluate
key
competitors

2.  Defining the competitive arena in the market
 Competitor analysis begins by identifying the
industry
 In the industry there could be direct , indirect, actual
and potential competitors

3.  Generic competition
 products which are all different in type but are
capable of satisfying the same basic want of the
prospective purchaser, for example, the consumer
may want to quench his thirst
Anything that he would buy to quench his thirst
would be a product in the generic category

4.  Brand competition
 Competition occurs among the same product
types that could satisfy the need of the consumer
almost in the same manner.
 Example: Consumer who wants to buy a soft
drink will choose anything in that category

5.  Varient Competiton
 Competition among the product variants are the
products that can satisfy the need of the
consumer when he opts to purchase a separate
variant of the product
 Eg. Consumer who opts to drink a soft drink to
quench his thirst may select
 A cola variant, Fruit Juice variant, Artificial Flavour
variant of the soft drink category.

6. Geographic Competition
 Any of the above competitors may
be found in the geographic
locations of the company may
operate.
 You need to do find specific
information from the geographic
locations to assess this category
of competition.
 This competition would differ from
the overall / general competition

7. Industry structure and characteristics
 Industry Form- Monopoly, Oligopoly,
pure competition
 Industry environment- Emerging,
Fragmented, Transitional (mature),
Declining, Global
 ( somewhat related to PLC)
 Competitive Forces- Brand rivalry, threat
of new entrance, threat of substitutes,
bargaining power of suppliers,
bargaining power of buyers

8. Strategic Group Analysis
 Strategic group is the set of firms in an
industry that use common strategies in the
competitive environment
 It could be analysed on product specialization,
brand image, distribution, technological,
vertical and horizontal integration, cost
advantage, price, financial status etc
 Eg: Pesi ,Coke and Elephnat House . Mobitel
,Dailog and Etisalt, Nissan, Toyota and Ford
 These groupings make competitor analysis
more feasible and usable

9. Identifying, describing and evaluating
competitors
 Strategic Group analysis helps
identify the key competitors in an
industry
 Key competitor is a firm that goes
after the same target market that
the company is going to play
 It is very important to get more
details as much as possible about
the key competitors

10. • Evaluating key competitors
• Current capabilities, extent of market
coverage, customer satisfaction provided,
past performances , their products, their
pricing, positioning, distribution and
promotional activities etc.
• Now refer to the Marketing Plan Format you
are using and find out the information that
you should write.