Samarkand iktisodiyot va servis instituti

Individual competitor analysis

Following the identification of present and potential key rivals, this analysis consists of examining their characteristics, objectives, strategies, performance to date, and their strenghts and weaknesses to gain insights into their future behavior. The purpose of this process is to predict the future behavior of each competitor. Managers need to assess the likelihood that each firm will change its strategy in response to dissatisfaction with its present position, changes in the environment, or moves made by other competitor’s. The evaluation process also helps management better understand a competitor’s vulnerability, which can be an important source of opportunities to the firm.

Competitor’s characteristics

Here managers are concerned with such characteristics as size of sales, profitability market position or share, growth, financial strenghts, reaction to parent company, domestic versus foreign coverage, and specialization. The trend of a competitor’s.
Strategic business unit﴾ SBU﴿ and product-market entry sales and market share are of particular interest because-along with profitability data- they reveal the success of a competitor’s strategy. When growth ﴾or loss is substantial over a short time, these also provide insights into the stresses and strains to which the competitors organization is being subjected. Under Philip Morris, Seven-Up not only lost share but also was a chronic money loser. Clearly, its strategy was not paying off. This fact did not go unnoticed by Coke or Pepsi as they sought to enhance their own shares of the lemon-lime market segment-a distant second to cola in popularity.
Analyzing the financial strenghts of key competitors helps evaluate their durability or staying power. This is an especially important characteristic during periods of turmoil and strong competitive pressures. Financial strenghts can be assessed on the basis of profitability, margins, cost trends, price ∕ earning ratios, and other performance measures.