"Nothing focuses the mind better than the constant sight of a competitor who wants to wipe you off that map" said Wayne Calloway, former CEO of Pepsi Co.
“Who really are our competitors?"
Is a tour operator is competing with a male outfit supplier? Is a business school competing with an insurance company? May be, the answer is yes, if we consider all of them to be fighting for a share of the consumer's purse.
So, the competitor analysis is the second phase of external analysis, in order to gain insights that will influence the product- market investment decision. The analysis is focused on identifying threats, opportunities or strategic uncertainties created by emerging or potential competitor moves. Competitor analysis starts with identifying current and potential competitors. After competitors are identified, the task is to understand them and their strategies, i.e., to analyse their strengths and weaknesses and strategic groups of competitors.
