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  Competitor  analysis 

  

Competitor analysis

  is a key aspect of digital business situation analysis. It is also a key 

activity in producing a digital marketing plan which will feed into the digital business strat-

egy  (which  is  described  in  more  detail  in   Chapter   8   ).    

   Resource‑  advantage  mapping 

 It is useful to map the internal resource strengths against external opportunities, to identify, for 

example, where competitors are weak and can be attacked. To identify internal strengths, defini-

tion of  

core competencies

  is one approach. Lynch (2000) explains that core competencies are 

the resources, including knowledge, skills or technologies, that provide a particular benefit to 

customers, or increase  

customer value

  relative to competitors. Customer value is defined by 

Deise  et al  . (2000) as dependent on product quality, service quality, price and fulfilment time. 

So, to understand core competencies we need to understand how the organisation is differenti-

ated from competitors in these areas. Benchmarking e-commerce services of competitors (as 

described in  Chapter   8   ) is important here. The  cost-  base of a company relative to its competi-

tors’ is also important since lower production costs will lead to lower prices. Lynch (2000) argues 

that core competencies should be emphasised in objective setting and strategy definition.          

  Strategic  objectives 

 Defining and communicating an organisation’s