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.
A realistic appraisal of each competitor's capabilities - its strengths and weaknesses- is the final diagnostic step in competitor analysis. Its strengths and weaknesses will determine its ability to initiate or react to strategic moves and to deals with environmental or industry events that occur. Identifying strengths and weaknesses is described in more detail in next chapter.