Competitive analysis is essential for identifying the strengths and weaknesses of your competitors and understanding the competitive landscape. In your MBA Capstone, a detailed competitive analysis helps you position your business strategy to outperform rivals and gain a market advantage.
3.1 Key Components of Competitive Analysis
- Competitor Identification: Start by identifying direct and indirect competitors. Direct competitors offer similar products or services, while indirect competitors provide alternatives.
- Market Positioning: Analyze where your competitors stand in the market. Are they market leaders, challengers, followers, or niche players?
- Competitive Advantage: Assess what differentiates each competitor—this could be their product quality, pricing strategy, customer service, or technology.
- Strengths and Weaknesses: Evaluate the strengths and weaknesses of each competitor. For instance, a competitor may have a strong brand but weak customer service.
- Strategic Moves: Look at the strategies competitors have employed, such as market entry, partnerships, or technological innovations.
3.2 Tools for Competitive Analysis
- Porter’s Five Forces: Use this to understand the intensity of competition within your industry.
- Competitor Benchmarking: Compare key performance metrics such as market share, pricing, customer satisfaction, and profitability.
- Market Share Analysis: Examine the market share of competitors to gauge their dominance and areas of vulnerability.