History As And Indicator Of Goals And Assumptions
Answers to the following questions provide a historical basis for looking at what are a competitor's goal and assumptions:
- What is the competitor's current financial performance and market share, compared to that of the relatively recent past?
- What has been the competitors's history in the marketplace over time? Where has it failed or been beaten, and thus perhaps not likely to tread again?
- In what areas has the competitor starred or succeeded as a company? In new product introductions? Innovative marketing techniques? Others?
- How has the competitor reacted to particular strategic moves or industry events in the past? Rationally? Emotionally? Slowly? Quickly? What approaches have been employed? To what sorts of events has the competitor reacted poorly, and why?
The third component of competitor analysis is developing statements of the current strategy of each competitor. Strategy options available to businesses are discussed in detail in next chapter.