Blind spots in competitive analysis

1. Blind spots in competitive analysis Competitive analysis is the process by which a company attempts to define and understand its industry, its competitors, the strengths and weaknesses of its rivals, and anticipate their moves. Employees awareness of competitive challenges facing the company will contribute to successful strategy implementation. Scanning the environment must be a continuous process Misjudging industry boundaries (domain, customer groups, customer functions and critical technologies) Poor identification of competitors Emphasis on Competitors visible functions (organization, structure and culture) Emphasis on Where (market), not How (technology, logistics), to compete. Faulty assumptions about the competition. (there is always risk, right? So why is this a blind spot?) Paralysis by Analysis

2. Blind spots in competitive analysis The cure: Pay Special attention to the Staffing, Organization and Mission of the ‘competitive analysis unit’. Use your own invisible functions in conducting competitive analysis (use your network, your arms, your contacts) Change your views of the competition Live the meaning of ‘competition is good’ Develop an ability to see the industry from the eye of the competitor. Learn to see the industry from the entrant’s eye. Study the reason for a potential entrants failure Perform an autopsy on failing companies (and I should add ‘on successful companies too’) Study competitors response pattern Study rivals blind spots (If to is difficult to study owns, how to study others?)

3. Blind spots in competitive analysis This articles has a weak relationship with my thesis: Competitors of the ‘Maquiladoras de exportacion’ are the manufacturing companies abroad. IME must understand what are the KSF of their competitors and how those resources can be substituted with the companies own resources (location, quality, cost, service, flexibility, speed, etc…)