ABSTRACT
Competition is defi ned by the perceptions of the customer and not by the (mis)perceptions of the members of a management team. (Anon)
We suggested in Chapter 6 that the past 10 years have seen the emergence of a very different 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 environment can be seen to be characterized by:
■ Generally higher levels and an increasing intensity of competition
■ New and more aggressive competitors who are emerging with ever greater frequency
■ Changing bases of competition as organizations search ever harder for a competitive edge
When you have read this chapter you should be able to understand:
(a) the importance of competitor analysis;
(b) how fi rms can best identify against whom they are competing;
(c) how to evaluate competitive relationships;
(d) how to identify competitors ’ likely response profi les;
(e) the components of the competitive information system and how the information generated feeds into the process of formulating strategy.
