Assessing Competitors
It is vital to determine the objectives of the competition. It is significant to determine the importance a competitor places on following:
A. Today profitability.
B. Market share growth.
C. Technological leadership.
D. Cash flow.
E. Service leadership.
F. other goals.
The more that one firm's schema resembles another firm's schema, the more the two firms compete. Strategic groups should be recognized. In an industry a strategic group is a group of firms following the same or similar strategy in a given target market.
- There is frequently rivalry among groups.
- All dimensions must be examined to recognize the correct strategic group.
Assessment of weaknesses and strengths should be accomplished. Benchmarking is the procedure of comparing the company's manufacture and processes to those of competitors or leading firms in other industries to discover ways to develop quality and performance. A company also needs to know what a competitor will do in a particular situation. Normally each competitor reacts differently.