Competition Analysis

Competitive analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis offers both an offensive and defensive strategic context to identify opportunities and threats. Profiling combines all relevant sources of competition analyzes into one framework to support efficient and effective formulation, implementation, monitoring and adaptation of the strategy.

 

Competitor analysis is an essential part of the business strategy. It is argued that most companies do not carry out this kind of analysis systematically enough. Instead, many companies operate on what are called 'informal impressions, suspicions and intuition that are gained by the facts about information about competitors that every manager receives continuously'. As a result, traditional environmental scanning places many companies at risk of dangerous competitive blind spots due to a lack of robust analysis from competitors.