chapter  6
44 Pages

Approaches to competitor analysis

We suggested in Chapter 5 that the last 10 years have seen the emergence of a new type

of consumer who is characterized by a very different type of value system and far

higher expectations. At the same time, a new type of competitor appears to have

emerged along with a different type of competitive environment. This new environ-

ment is characterized by:

➡ Generally higher levels and an increasing intensity of competition

➡ New and more aggressive competitors who are emerging with ever greater fre-


➡ Changing bases of competition as organizations search ever harder for a competitive


➡ The wider geographic sources of competition

➡ More frequent niche attacks

➡ More frequent and more strategic alliances are necessary

➡ A quickening of the pace of innovation

➡ The need for stronger relationships and alliances with customers and distributors

➡ An emphasis upon value-added strategies

➡ Ever more aggressive price competition

➡ The difficulties of achieving long-term differentiation, with the result that a greater

number of enterprises are finding themselves stuck in the marketing wilderness

with no obvious competitive advantage

➡ The emergence of a greater number of ‘bad’ competitors (i.e. those not adhering to

the traditional and unspoken rules of competitive behaviour within their industries).

The implications of these changes, both individually and collectively, are significant