Anyone who is at least a little familiar with marketing, heard about the competitive analysis of the market. Without its application, it is impossible to calculate the prospects for the development of the organization, it is impossible to predict the best time to enter the market, etc. But an analysis of the competitive environment can also be used to assess the capabilities of a particular person. The approach is good, that it can be adjusted to almost any purpose, and therefore the essence of the process of competitive analysis should be considered in more detail.
Methods of competitive analysis
Distinguish the analysis of the situation and the industry analysis of the competitive environment. The first is used to solve momentary tasks, therefore, the nearest environment is evaluated. But industry-specific competitive analysis is needed to create a development strategy, so it takes into account the macro environment of the enterprise.
To assess the competitive advantages of a product, different methods of analysis are used.
- SWOT-analysis. The most famous of all methods of analyzing competitive positions. It is in the account of advantages, disadvantages, threats and opportunities. Therefore, it allows you to identify the weak and strong sides of the company (goods) and find ways to solve emerging problems. With the help of SWOT analysis, a company can develop a strategy of behavior. There are 4 main types of strategies. This is a CB strategy, which is to use the strengths of the company. SLV-strategy, which involves overcoming the weaknesses that the firm has. SU strategy, allows using the company's strengths to protect against threats, and the SLU strategy provides an opportunity to find a way to get rid of the weaknesses of the enterprise in order to avoid threats. This analysis is usually used in combination with one of the following methods for analyzing the competitive environment. This approach allows us to obtain the most complete characterization of the environment.
- SPACE-analysis is based on the opinion that the competitiveness of products and the financial strength of the enterprise are the basic factors of the company's development strategy, and the advantages of the industry and market stability are of importance on the scale of the industry. As a result of the analysis, a group of characteristics (the position of the enterprise) is determined, to which the firm corresponds more. This is a competitive, aggressive, conservative and defensive position. Competitive characteristic for unstable markets in the presence of high competitiveness of the company's products. Aggressive often occurs when working in a stable and active industry, allows you to quickly respond to market changes. Conservative position is common for a stable area and firms that do not have significant competitive advantages. Defensive characteristic of economically unprofitable activities and means an unfavorable period of life of the enterprise, from which it is necessary to seek ways out.
- PEST-analysis allows you to identify the economic, political, social and technological environmental factors that affect the enterprise. Based on the results of the analysis, a matrix is drawn up, in which the degree of influence of this or that factor on the firm is visible.
- The competitive model by M. Porter allows us to characterize the state of competition in the industry. To do this, the influence of the following 5 forces is evaluated: the threat of the emergence of substitute products, the ability of suppliers to bargain, the threat of new competitors, the rivalry between competitors within the industry, the ability of buyers to bargain.
Stages of competitive analysis
As mentioned above, several methods are used to compile an objective opinion about the competitive environment. They are chosen to give answers to a number of questions. We can say that the analysis of the competitive environment is carried out in the following stages.
- Definition of a time interval for market research (retrospective, perspective).
- Definition of product market boundaries.
- Determination of geographical boundaries.
- Elucidation of the composition of economic entities in the market.
- Calculation of the volume of the commodity market and the share held by the business entity.
- Determination of the degree of market saturation.
- Clarifying the barriers to entry into the market.
- Assessment of the state of the competitive environment.
Ask, but how do you apply competitive analysis to a person? And very simply, each of us is in some way a commodity, we have certain skills and knowledge that we sell to the employer. With the help of the analysis it is possible to determine how much our knowledge is in demand and what needs to be done to be head and shoulders above all competitors working in the sphere of our interests.