Objective: To conduct a comprehensive competitive analysis of the top three companies within the selected industry, identifying their competitive advantages and strategic positioning.
A good competitive analysis is a scouting report of the actual market terrain that the industry itself must navigate to be successful. This is used in the strategic planning process to:
- Help management understand their competitive advantages/disadvantages.
- Generate an understanding of past, present, and future competitors and their strategies.
- Provide key information to achieve a future competitive advantage and inform on pertinent Go-to-market strategies.
Scenario: As a business analyst in a consulting firm, you are tasked with providing a detailed competitive analysis to help your client understand their position and strategize accordingly in the industry landscape.
Assignment
In this assignment, you will select an industry you want to explore. Make sure it has a unique identification code (typically a five-digit number). You will prepare a competitive analysis of three of the industry’s top competitors by researching the industry. Your analysis should include:
- Executive Summary (Section 1): High-level overview of the paper; this would be read by a busy executive to determine interest in the report and its findings. (one-page length).
- Industry Overview and Description (Section 2): Financial data, revenue size, number of competitors, industry leaders, etc. Provide key industry stats that can be found in the IBISWorld or Hoover’s databases, which are available through the CSP Library (other sources are available as well). Consider utilizing a chart to demonstrate the information in this section, along with some text information to transition information and lay a foundation. (Refer to the example chart given below.)
Source: Apple, Google, and Microsoft: revenue comparison 2008-2023. (2024, February 5). Statista.
- Key Factors (Section 3): To understand the factors driving this industry’s growth and innovation, conduct an environmental scan of the social, legal, regulatory, and demographic areas. Then, provide the industry’s SWOT (Strengths, Weaknesses, Opportunities, and Threats analysis) in a grid format. (Grid templates for SWOT Analysis are provided in the Reading Reference.)
- Analysis of the top three competitors (Section 4): Develop an analysis of key factors for the competitors and a SWOT of each competitor. A grid format presents a strong representation for the analysis, which should include company financial data, major lines of business and potential divisions of interest, market positioning, market share, branding, target market, company overview, products, revenue, HQ, employees, financial overview, points of differentiation, critical success factors, etc.
- Once you have completed the analysis grid and the SWOT – Summarize this section by answering the following questions (Section 5):
- How do the companies stand up to the competition?
- What are the competitive edges of each?
- What does each do better than its competition?
- Where might each competitor be vulnerable?
- What is the major “watch-out” for each competitor? Why? And if none, what are the vulnerabilities?
- What are the specific omni-channel market strategies each utilizes to achieve their objectives?
- Industry future (this is your higher-level analysis of the “industry facts” ): What factors will influence the success or decline of this industry over the next three years? Where do you see the competitors in three years, and how will the industry itself change? What recommendations would you have for each competitor based on what you have researched? Consider how you would relate Blue Ocean Strategy to the industry-specific to the three competitors. This section should demonstrate how well you have synthesized the information and your analysis. This section should be two to three pages in length and supported by your research.
- Conclusion (Section 6): Your final thoughts on this industry (Sections 5 & 6 need to be at least three pages with support.) Who do you believe has the competitive advantage today and in the future? Why?
Guidelines
Paper Structure
- Title Page: Include the title of your paper, your name, the course title, the instructor’s name, and the date.
- Abstract: Provide a brief summary (150-200 words) of your paper, outlining the main points of analysis and conclusions.
- Introduction
- Background Information: Briefly discuss the importance of competitive analysis in strategic business planning and understanding market positions.
- Objective: To analyze the top three competitors in a chosen industry to understand their strategic positioning and competitive advantages.
- Scenario: As a business analyst, you are tasked with evaluating the competitive landscape to assist your client in strategizing more effectively within the industry.
- Selection of Industry and Competitors: Choose an industry of interest that has a unique identification code and select three leading competitors within this industry.
- How to find the unique industry code?: To locate the industry code for the industry you wish to explore, you can use the North American Industry Classification System (NAICS) website. Here are the steps:
- Go to the NAICS website.
- Use the search function to enter keywords related to your industry.
- Review the list of relevant industries and their descriptions to find the appropriate code.
- Note the five-digit NAICS code for your selected industry.
- Executive Summary: A high-level overview of the paper which will be read by a busy executive to determine interest in the report and its findings. (one-page length).
- Industry Overview and Description:
- Provide an overview of the industry, including financial data, revenue size, and number of competitors.
- Utilize sources like IBISWorld or Hoover’s for data, represented through charts and descriptive text.
- Key Factors:
- Discuss the drivers of industry growth and innovation, including an environmental scan of social, legal, and demographic factors.
- Perform a SWOT analysis of the industry in a grid format.
- Analysis of the Top Three Competitors:
- Develop a competitive analysis of key factors for each competitor.
- Conduct a SWOT analysis for each, presented in a grid format that includes financial data, market share, branding, and other relevant details.
- Comparative Analysis, Recommendation & Summary:
- Evaluate how the competitors stack against each other and identify their competitive edges and vulnerabilities.
- Summarize the findings and answer specific questions regarding their market strategies and potential vulnerabilities provided in the “Assignment” section.
- Industry Future:
- Analyze factors that will influence the industry’s success or decline over the next three years.
- Provide strategic recommendations for each competitor based on the analysis.
- Relate findings to the Blue Ocean Strategy specific to the competitors.
- Evidence and Examples: Support your analyses with specific examples and empirical evidence. Where applicable, reference peer-reviewed articles, credible industry reports, and case studies.
- Conclusion: Summarize the key findings, reinforce the main insights gained, and reiterate the recommendations.
- References: Ensure your work is original and appropriately cites sources to avoid plagiarism. Refer to the citation guidelines below.
Citation
APA Citation and Reference Guidelines: Adhere to APA formatting for all citations and references. This includes both in-text citations and the reference list.
- In-Text Citation Guidelines: Ensure proper in-text citations for any external sources or research papers referenced.
- Reference List Guidelines: Maintain a comprehensive reference list formatted according to APA standards.
- Use APA formatting for citations and references.
Submission
Document Format:
- Submit your paper as a Word document to preserve the formatting.
- Use a clear, readable font such as Times New Roman or Arial, with a font size of 12.
- Set 1-inch margins on all sides of the document.
- Double-space the text throughout the document.
- This is a 100-point assignment.
- The paper should include at least 1,000-1,200 words (approximately 4-5 pages) of content.