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What do you understand by Competitors Analysis?
Competitors Analysis, as the name suggests, is the activity that a firm undertakes to keep a check on the activities of its competitors. In 1985, Michael Porter and his associates came up with Competitive Marketing Management Analysis. He suggested that to predict the profits or losses of an industry, or an individual one has to analyze the factors that shape up the growth or fall of industry. Competitor’s analysis is a very important part of business management and strategic planning. Getting information about competitors and using information to forecast competitor’s behavior are two primary activities in Competitors analysis. There are 6 basic factors that shape up an industry.
1. Relative power of customers.
2. Relative power of suppliers.
3. Actions of competing firms.
4. Threat to new entrants in the market.
5. Barrier to exit the industry.
6. Threat from market of substitute products.
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