Analysis: Competitor Dynamics Assignment
Success in the simulation requires that your firm simultaneously anticipate and respond to changes in both demand and competition. Teams often fail to anticipate the likely moves and reactions of competitors. Omission of critical competitor intelligence in making decisions can prove to be disastrous for your profitability. For example, failing to anticipate a competitor entering your space. The purpose of this exercise is to help your team determine the probable moves of key competitors and then factor this information into your decisions going forward. Please choose who you believe is your most significant competitor and respond to the following questions.
Firm you have chosen for in-depth analysis. Please explain why you chose this firm: _______
Note: Remember, this is an analysis. An analysis is different from a plan because it uses all data, information and logic to consider all options - even if the options are not something you would consider acting on. With an analysis, you will have thought through all the scenarios ahead of time and your company will not falter or be stymied by unforeseen events. Like in a chess game, you are trying to "read" the future. Be sure to be thorough and well-grounded in the details and facts. With a careful grounding, then, you are free to be creative!
1. Marketing Strategy: What do you believe is this competitor's marketing strategy? How does it differ from your marketing strategy? How do you anticipate it will change as the industry moves through the lifecycle toward maturity and decline? Be thorough and remember there is more to marketing than price.
2. Financial Strategy: What do you believe is this competitor's financial strategy? How does it differ from your financial strategy? How do you anticipate it will change as the industry moves through the lifecycle toward maturity and decline?
3. Source of Competitive Advantage: What do you believe this competitor views as their source of competitive advantage? Why? Be sure to back up your arguments with facts. For example, what strategic moves has this competitor made to make you believe this is what they think is their competitive advantage?
5. Self Analysis: How does this competitor view your firm? Do they consider you a threat? What weaknesses does your firm have that might be viewed as an opportunity for this competitor? In other words, if this competitor figures your company out, what defensive moves might you have to take?
6. Strategic Assumptions: What moves do you anticipate this competitor will make in the next 3 years and how will you respond to them. Please support this with facts and history and explain how it will change as the industry moves through the lifecycle.
Assignment Files -
https://www.dropbox.com/s/7ftc9m2puehi6db/Competitor%20Dynamics%20Assignment%20Files.rar?dl=0