Question

Which of the following is NOT an obstacle to competitor analysis:

a. Faulty assumptions about the competition.

b. Overemphasis on where, rather than how to compete.

c. Effectively evaluating industry and service boundaries.

d. Overemphasis on competitors’ visible competence.

Answer 1

Answer: c (Effectively evaluating industry and service boundaries)

An organization engages in competitor analysis to gain the knowledge and understanding about the competitors, determine in case of competitor’s vulnerabilities, and influence of same on the strategic actions with respect to the competitors, determine significant actions which competitor would take to prevent position in the marketplace. Thus, the six impediments for a competitor analysis to be effective, are –

• Misjudging industry and boundaries of service area
• Bad determination of the competition
• Overemphasis on competitors’ visible competence
• Overemphasis on where, rather that how to compete
• Faulty assumptions about the competition and
• “Paralysis by analysis”