Competitors Analysis

Akar Scarf - the uprising Shawl

Method of analyzing competitors or competitors analysis has always been a mistake to many companies despite corporate or small size or even individual entrepreneurs.

The question is “ Have I done right in analyzing the competitors? How could I ensure my methodology is right? “  Another question is, how many competitors do we need to analyze?

For example, if we are having a café in Setiawangsa or even in Bangsar; the questions are:

1          Who are our competitors?

2          How many?

3          Will the companies in Penang or Singapore which is 300 km away is also our competitors?

From my perspective, before we study our competitors, it is important to study in a right methodology.

A good propose method is drawn below where it is a mix of Marketing Principle and Marketing 3.0 of Kotler, and Strategy by Thomson. These could be currently a good mixture of flow process to develop external environment analysis, which leads to competitor’s analysis.

Along this process it is crucial to undertake some other process to be inserted as an additional initiatives such as KSF (Industrial Key Success Factor) during the process of external analysis. The idea is that we should not be rigid to the chart.

Exercise:

Assignment:

Select an industry below and critically analyze its external environment analysis. Develop a key success factor for the industry based on your findings. The area of study is within Malaysia. Select a town for the matter e.g. Melaka or Bangsar etc.

1. Fashion Industry – Focus on Shawl

      2. Food Industry – Café for Coffees (similar to Old Town White Coffee or Starbuck)

      3. Service Industry – Marketing Company to market products for other company or companies)

Words: 2,500 – 3000 words

Font: Arial

Space: 1.5

Presentations:

You are required to select a medium to small business entity and evaluate what are the right strategy should be adopted by the company. Justify your judgment. Selection of company must be based on industry above (in assignment).

Managing Company misalignment – the external environment

In managing company, its important to align the company with the external forces either the general environment or the industrial environment. In many cases the key management only look at the external environment in general such as the economic and the customer behavior changes. The ultimate analysis is not being done such as PESTEL (Political, Economical. Social, Technology, Environment and Law). Later the company needs to undertake the industrial analysis where the company is in which are the Buyers, Sellers, Incumbents, Rivals and New Entrants. All these five forces could determine the new way forward for any organization including the general environment forces (Thomson 2011).

Not neglecting all these forces of the external environment, the company needs to undertake the internal analysis, which involves the internal resources that is its availability and capabilities. Besides that, the value chain analysis and re-evaluate whether the strategy chosen is right or vice versa. By not practicing right flow of the process the company would not be able to maintain its sustainability (Thomson 2011). The company might be lucky to make profit and survive but they are not able to grow in a right or accurate proportion to the industrial potential growth.

Presentation Questions: Group work

Your group needs to select the company in an industry as mentioned below (based on your group

Analyze the company and undertake an analysis on:

a.     Is the company practicing any strategy? (Competitive and beyond competitive level).

b.     What is the strategy adopted by the company if any. If not, propose what strategy the company should adopt?

Each group members must present 1-2 slides and each slides is at 2 minutes.

The evaluation will be based on: Presentations, Contents of the presentations and the flow of the presentations.

Group 1 and 2- F&B (Old Town White Coffee, Bangsar)

Group 3 and 4 – Textile and fashion (Modvier Boutique, Bangsar)

Group 5 and 6 – Services (UMCCED)
Group 7 and 8 - Travel and tour (De Palma Hotel Ampang Point)

Assignment: Individual

Select a small business entity of company in the industry given below which has been given to your group.  You are needed to answer below questions in your assignment.

What do you think on the external forces of the given industry? What are the most critical factors and what is the probable future trend? Explain in detail. Provide and example as a point of reference (example of an industry and a sample company).

Group 1 and 2- F&B

Group 3 and 4 – Textile and fashion

Group 5 and 6 – Services
Group 7 and 8 - Travel and tour

Word counts: 2,500 – 3,000

Fonts: Arial

Space between lines: 1.5

References from Journals: 5 journals (Right cross referencing must be made)