Factors In The Competitors Analysis Essay

Question:

Discuss about the Factors In Competitors Analysis.

Answer:

Competitors Analysis

For evaluating the competitors, it is necessary to look at their objectives and strategies, their advantages, image, position, and competences.

The first step for this analysis is identifying the current and potential competitors. There are two ways for doing this (Aaker, 2007) :

  • Customer based approach, how the clients choice between the offers in the market. primary competitors are easy to identify
  • Divide the competitors into strategic groups based on their competitive strategy and analyze their straights and weakness.

In addition, it is important to look at potential competitors for predicting threats and opportunities for the company.

Based on the following information, the company can create their own successful strategy.

Size, grow and profitability is one of the factors in the competitors analysis. The profit of other companies can give an idea of the market. Understanding if they have been growing fast or if they are a big firm, can be helpful for knowing if they are strong competitor. Also we have to consider the number of employees. The next it image and positioning, which is on of the most important factors in all companies and also when analysing. Finding the image and brand personality of the most important competitors, their weakness can be an opportunity for the firm to differentiate or innovate (Mete and Davies 2017). This information can be deducted by looking at their advertising, products, website and by using qualitative customers research.

In this model competitors objectives and commitment also plays a role. Here the financial objectives will lead to a stronger inversion of capital, expansion. Technological objectives, innovation or service can also say a lot about how a firm will act in the future. The companies/competitors current and past strategies is also important to take into consideration, because not only the actual strategies are important, past strategies are essential for revealing success or fail in a determinate market, analyzing other experiences can be very helpful for a getting to know a new market. Competitor organization and culture is the culture of an organization. It shows their systems and their employees which limits the possibilities for archiving their goals. This is also mentioned in:

Cultural factors.

The cost structure is also a factor in this analysis.“Cost structure refers to the types and relative proportions of fixed and variable costs that a business incurs. The concept can be defined in smaller units, such as by product, service, product line, customer, division, or geographic region. ” So the cost structure can be used as an indicator for future pricing strategy, and also help to find out in which areas the cost can be reduced. There are different kind of cost structures: product-, service-, product line-, and customer cost structure, and they are all defined in proportions of fixed and variable costs.

Exit barriers are important in terms of if the company can just leave this market. Here we should consider specialised assets, fixed costs, relationships and contracts with their business, government and social barriers, managerial pride and emotional attachment of the owners, to determine how easy or hard it is to leave the market (Lechner, Soppe and Dowling 2016). Lastly the strengths and weaknesses are mentioned. This is the key for understanding the strategy that competitors will follow. Racemakers can use their competitor’s weakness for developing their strengths characteristics and neutralize the competitors. Some relevant elements about the competitors strengths and weaknesses are.

Competitor 1

Competitor 2

Competitor 3

Competitor 4

Competitor 5

Competitor 6

Name

Teamshop

Bergans of Norway

Triathlonutstyr

Intersport

Tri-Sport

Triathlon shop Norway

About

Teamshop.no is a webshop, which has specialised in a simple way to administrate team clothes and team supplies to organisations

It has customized products, recycling products, rent of equipment

They allow free sending when ordering above 500 bucks.

Established in 1968.

The shop is already now in 44 different countries, but the largest chains are based in Norway.

Shop established in 1992

Shop was established in 2001

It offers free delivery worldwide after qualifying a certain price.

Their focus

Sports teams and competitions/events.

They focus on long life of robust, high-quality products that can be reuse. So when buying a product, they believe it should say with a buyer for many years.

They provide Triathlon to its customers.

They focus on the areas with high-quality product and sports products.

It has its focus on bike, cross country skiing, alpine skiing, racing and textile

Milsluker'n Sport has specialists in all focus areas; kayaking , skiing , cycling and racing . Active practitioners help with qualified guidance so you choose the training equipment that best suits you and your needs.

Websites

Table: List of competitors in Norway

The above table describes that there are 6 competitors in Norway that sells triathlon clothes and equipments. The competitors are Team shop, Bergans of Norway, Triathlonutstyr, Intersport, Tri-sport and Triathlon Shop Norway.

Teamshop is a web based shop that is specialised in administrating team clothes and team supplies to the organizations.

Bergans of Norway offers personalized products, recycling of the products and the rented equipments.

Triathlonutstyr is another shop in Norway that is specific to providing only triathlons to the customers. However, they provide with an offer to the customers to shop above 500 bucks and avail to free delivery service.

Intersport was established in 1968 and mainly focuses to provide sports products with high quality.

Tri-sport was established in 1992 and mainly focuses on bike, cross country skiing, alpine skiing, racing and textile products.

Triathlon Shop Norway was established in 2001 and mainly focuses on kayaking , skiing , cycling and racing products.

With whom to compete in Norway (not finished)

In order to find any potential threats for the Racemakers in Norway, it is important to search for the competitors. By collecting some information about other companies, Racemakers will have basic view on what are they going to face in Norway and if it affects their financial situation. Most companies with online stores provides information on websites, therefore collecting simple data can be based on what is founded in there.

Competitor strategy

A firm's strategy can be defined as the actions that managers take to achieve the goals to the organization, it's a long term direction. According to Michael Porter there are three generic competitive strategies that irms can use for creating value and get a competitive advantage in the industry: cost leadership, differentiation and focus/niche. (W. L. Hill, 2017).

Cost leadership can be considered when the company that offers the lowest price in certain activity in the market. Differentiation is creating a superior value and/or differentiate the product in some way that the customers value it more and for this reason the will be willing to pay more (premium price). The third strategy is Focus, it consist in targeting a narrow segment of clients and create tailor products or services that fulfil their specific needs, this strategy requires to have a deep knowledge of the of the market segment, develop a strong reputation, have a close relationship with the clients and understand them (Rothaermel 2015).

For racemakers the competitive strategy is the third one, focus. A focus strategy is the best strategy for ’’small firms because they have the flexibility to respond quickly to the specialized need of small segments’’(M. S.Wilson, 2013). In this case our target group is people participating in triathlons in the age 44-50 and for the success of the strategy is crucial that Racemakers understand the needs and desires of this specific group, become experts in triathlon and have a strong reputation among athletes who practice this sport.

References

Lechner, C., Soppe, B. and Dowling, M., 2016. Vertical coopetition and the sales growth of young and small firms. Journal of Small Business Management, 54(1), pp.67-84.

Mete, M. and Davies, G., 2017, October. A Comparative Study on Brand Image Measurements. In Global Conference on Services Management (GLOSERV 2017) (p. 330).

Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education

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