Competitor analysis in advertising and strategic administration is an evaluation of the stréngths and weaknesses óf current and potentiaI competition. This evaluation provides both an offensive and defensive strategic context to recognize threats and possibilities. Profiling combines all the relevant sources of competitor analysis intó one framéwork in the suppórt of efficient ánd effective strategy formuIation, implementation, monitoring and adjustment.
Competitor analysis is an essential component of corporate strategy. It is argued that most firms do not conduct this type of analysis systematically plenty of. Instead, many enterprises operate on what is called "informal impressions, conjéctures, and intuition gained through the tidbits of details about rivals every manager continuously receives." As a result, traditional environmental scanning locations many firms at risk of dangerous competitive blindspots due to a lack of robust competitor analysis.
One common and useful technique is definitely constructing a competitor array. The steps may include:
Define the market - scope and nature of the market.
Determine who the rivals are.
Determine who the customers are and whát benefits they expect.
Determine the key strengths - for example price, service, convenience, inventory, etc.
Rank the key success factors by giving each one á weighting - Thé sum of all the weightings must add up to one.
Rate each competitor on each of the key success factors.
Multiply each ceIl in the mátrix by the element weighting.