An analysis of an industry’s players provides an overview of the current and potential competitors’ positions and directions with respect to strategy, objectives, capabilities, and/or other relevant dimensions. It can be used to forecast competitors’ future behavior, predict their responses, determine how they can be influenced, and to gain insights into their relative advantages and/or disadvantages.
- Define players. List all potential competitors and identify key information such as revenue, profit, size, products, customers, stakeholders, mission/vision statements.
- Analyze players. Identify the most important competitors and define them on the basis of their industry and market perspective, define the segments in which they compete, and assess their capabilities.
- Summarize competitive environment. Determine the strengths and weaknesses of individual players. Look at: revenue and profit by business, cash flow, experience curve, stock performance, financial return measures, product/market performance.
- Use the purpose of the organization (vision/mission, objectives, strategies, and value propositions) as a point of departure
- Be careful not to neglect to examine “peripheral” players
- From the universe of competitors, the key ones need to be thoroughly analyzed through advanced economic and strategic techniques, to fully understand the competitors who pose the greatest strategic threats
- Several level of detail of the analysis could be pursued according to the amount of available time/resources
- Player’s analysis is a fundamental technique with many uses: overview of competitive structure, predicting competitive behavior, alliance opportunities, etc.
- The scope of the project will determine the depth of the analysis required