Assignment no. 5 - Competitor Analysis
1. Explain how having strong competitors can benefit a company?
Having a clear picture of what you're up against will defenitely help you up your
game and could mean the difference between success or failure. If you are toe to
toe with a strong adversy, you would want to know his strengths and weakness in
order to win.
Applying this to a business standpoint, competitive benchmarking makes it possible
for the firm to know the "secret sauce" of its competitors,that which makes them
successful. Once the firm learn the unique practices and methodologies of its
competitors, they can adapted to improve their own performance or even to get
ahead.
2. Is being a market follower a good competitive strategy? Discuss the
advantages or disadvantages of being a market follower and the factors to consider
when pursuing this strategy.
I believe that being a market follower is a good strategy if you want to stability
and to be able to operate under the radar of market leaders. They are not a threat
to market leaders because of its small market share and avoids direct competition.
Another advantage is in terms of market segmentation. They can choose one market
were they are good at and make the most profit.
What's more, market followers do not have to spend a fortune on marketing and R&D,
which means that they can exist the industry anytime and don't have to lose much.
The disadvantages of being market follower are that they are perceived as
copycats'.
3. Discuss the need to understand competitors as well as customers through
competitor analysis.
Understanding competitors is like learning from other people's success stories. We
learn from other people's success so we can apply the same on our own lives. The
same goes in Business. Understanding competitors is learning from their successes
and mistakes and how they deal with their target market and customers, with the end
goal of competing more effectively. Adapting what you can use to make your firm
more competitive can help avoid pitfalls and pick up things that you can improve
on. A wise philosopher once said, "know your enemy". For if you know your enemy,
you'll have an idea how to beat them.
4. List three firms you are familiar with and give a distinctive competence for
each firm.
Distinctive competencies of firms:
(1) Huawei
Innovation: Holds thousands of IP patents.
Excellent company culture- Giving high salary, housing and other benefits to
employees. Huawei is owned wholly by its employees.
(2) IKEA
1. Explain how having strong competitors can benefit a company?
Having a clear picture of what you're up against will defenitely help you up your
game and could mean the difference between success or failure. If you are toe to
toe with a strong adversy, you would want to know his strengths and weakness in
order to win.
Applying this to a business standpoint, competitive benchmarking makes it possible
for the firm to know the "secret sauce" of its competitors,that which makes them
successful. Once the firm learn the unique practices and methodologies of its
competitors, they can adapted to improve their own performance or even to get
ahead.
2. Is being a market follower a good competitive strategy? Discuss the
advantages or disadvantages of being a market follower and the factors to consider
when pursuing this strategy.
I believe that being a market follower is a good strategy if you want to stability
and to be able to operate under the radar of market leaders. They are not a threat
to market leaders because of its small market share and avoids direct competition.
Another advantage is in terms of market segmentation. They can choose one market
were they are good at and make the most profit.
What's more, market followers do not have to spend a fortune on marketing and R&D,
which means that they can exist the industry anytime and don't have to lose much.
The disadvantages of being market follower are that they are perceived as
copycats'.
3. Discuss the need to understand competitors as well as customers through
competitor analysis.
Understanding competitors is like learning from other people's success stories. We
learn from other people's success so we can apply the same on our own lives. The
same goes in Business. Understanding competitors is learning from their successes
and mistakes and how they deal with their target market and customers, with the end
goal of competing more effectively. Adapting what you can use to make your firm
more competitive can help avoid pitfalls and pick up things that you can improve
on. A wise philosopher once said, "know your enemy". For if you know your enemy,
you'll have an idea how to beat them.
4. List three firms you are familiar with and give a distinctive competence for
each firm.
Distinctive competencies of firms:
(1) Huawei
Innovation: Holds thousands of IP patents.
Excellent company culture- Giving high salary, housing and other benefits to
employees. Huawei is owned wholly by its employees.
(2) IKEA
