Competitor Analysis: Anticipating

Competitive Actions

Group 5
 Title
Ansoff growth Matrix
Products
Present
New
(Clip- to-board)
Markets

Present Market Penetration Product Development

1100,000

500,000
New Diversification

Figs. In Units
France S. Korea
 Title
Western Connector Corporation
(WCC)

Profit improvement

Productivity improvement Sales Growth

Existing assets Change asset base Market penetration Market development Product development

Increase Acquire
Improve Improve Increase New Convert Existing New
Cost price/ competitor
asset product Usage segments non-users Market Market
reduction reduce customers
Utilization sales mix
discount
Cash and Margin Focus Growth Focus

Investment Disinvestment
-Innovation, Redevelopment of
-diversification capital resources

Capital Utilization Focus

Elements of Competitor Analysis

Game
Theory

Behavioural
Theory

Analysis Framework
Goals Strategy
Assumptions Capabilities

Data Sources
Public Private Signals
 Dominant
Strategy

Sequential Dynamic
Move Games

Game
Theory

Simultaneous
Static Games
Move

Equilibrium
 Bounded
Rationality

Confirmation Overconfidence
Bias

Behavioural
Status Quo Bias Justify past actions
Theory

Representati Endowment
ve Bias Effect

Heuristics

Suck cost fallacy Nonrational escalation of commitment

 The Analysis Framework
What Drives the Competitor What is the competitor is doing and can
do
Future Goals Current Strategy
At all the levels of management and in How is the business is currently
multiple dimensions competing
Assumptions Capability
Held about itself and the industry Both strengths and weakness