Describing the Competitor

A key competitor is a firm going after the same market target as the firm conducting the analysis. American, Delta, and United Airlines are key competitors on many U.S. routes. Key competitors are often brands that compete in the same product-market or segment's) within the market. Different product types that satisfy the same need or want may also actively compete against each other. For example, surgical stapling equipment competes with needle and suture closure procedures.

A checklist of information included in the competitor profile is shown in Exhibit 3-7. Sources of information include annual reports, industry studies by government and private organizations, business magazines and newspapers, trade publications, company reports by financial analysts (e.g. Value Line Investment Survey), government reports, standardized data services (e.g., Information Resources, Inc.-. and Nielsen), databases, Suppliers, customers, and salespeople.

It is important to gain as much knowledge as possible about the background, experience, and qualifications of key executives of each major competitor. This information includes the executives' performance records, their particular areas of expertise, and the types of firms where they were previously employed. These analyses may suggest future strategies of a key competitor. Business and industry publications and newspapers are useful sources of this information for executives who work in large firms. Other sources include suppliers, customers, and marketing channel organizations.

The descriptive profile of a competitor includes a historical picture of management's marketing decisions. Past decisions show the pattern of changes in marketing strategy? And tactics as management responded to changing market conditions. Analysis of these decisions should attempt to match them with specific changes taking place in markets or with competitors. An experienced marketer can then develop a feel for the management style of the key competitor by looking for patterns or consistencies in these decisions.