Competitor’s Objective
Category: Marketing
An important aim of the competitor analysis is to know about the competitor’s objectives as it will help to understand the competitor’s strategy. It gives the possibility to predict the next move of the competitor.
| What is the objective of the competitor? | |
| What objectives are important for the
competitor: — Increase in earnings — Interests on net capital — The ability to satisfy needs — Demands for output or what? Is the competitor ready to take the risk of trying new untested activities? |
Does the competitor have clear objectives for
being leader of the market, innovator? To what degree does the competitor and per- haps subsidiary meet the required demands? Other essential questions? |
Examining the competitor’s present or earlier strategies could indicate which activities to expect in the future.
| The present strategies of the competitor | |
| To what extent is the competitor specialised?
Which customer segments/geographical areas are the most important? Use of direct influence on consumers or indirect marketing via the distribution system? Which distribution channels are used? What is the level of products/services compared with our own? Implementation of new product development and in which areas? Does the competitor follow a certain pattern in relation to launching new products/new markets? |
Has the competitor followed a certain growth
strategy through the years? How is the sales organisation structured and how does it function in contrast to ours? What is the cost level of the competitor? Does the competitor follow a certain price policy? Use of special management methods? What is the competitor’s sales message – media, methods? Which new activities have been planned? Others? |
The Competitor’s Perception of Itself
The competitor’s perception of himself reflects the strengths which a company believes to possess and which often lead its actions.
| The competitor’s | perception of himself |
| • What is the business mission of the •
competitor? • Where does the competitor believe to have • his strengths and weaknesses? • What characterizes the competitor’s company culture? |
Has the competitor within the last 2 years reacted
strongly to activities launched by your company orby colleagues? Others |