Discuss the competitor response profile. What is it, and how can it be useful in evaluating competitors?
Competitor response profile
A competitor response profile can be built based on an analysis of a competitor's objectives, assumptions, strategy and capabilities.
The competitor analysis can be carried out on the following points:
Competitor's Ojectives:
The competitor's financial and other objectives need to be studied from different sources.
Competitor's Assumptions
The competitor's assumptions can be learnt from their beliefs, past experiences and industry trends.
Competitor's Strategy
A competitor's strategy can be studied by looking at their annual reports such as the Form 10K report, press releases and other statements. Other sources of information, such as hiring patterns, R&D activities, investments, partnerships and mergers, can also be studied to know more about the competitor's strategy
Competitor's capabilities
A SWOT analysis can be done with information regarding the competitor, to look at their strengths, weaknesses, opportunities and threats. Various sources of data can also be studied to gain such information. Some examples are investments in fixed assets, and their organizational structure.
Use of the Competitor response profile
The strengths of a competitor, and their potential moves in reaction to changes in the market or for offensive or defensive moves, can be predicted or estimated using this profile.
A company which can draw up accurate competitor response profiles of their nearest or important competitors can use these profiles to predict competitor behaviour or even to influence their actions to some extent.
Discuss the competitor response profile. What is it, and how can it be useful in evaluating...
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