COMPETITION ANALYSIS: BEYOND DESCRIPTION

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COMPETITION ANALYSIS BEYOND DESCRIPTION

• MICHAEL W. PICZAK
• JANUARY 2004

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HOW WE DO

• AMONG THE WORST THINGS DONE IN A BUSINESS PLAN
• LONG ON DESCRIPTION
• LEAN ON ANALYSIS
• NO WRITE UP/DISCUSSION

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METHODS

• WEB VISITS
• FIELD VISITS/SHOPPING THE BAD GUYS
• NEWSPAPER ACCOUNTS
• USING YOUR SURVEY TO COMPARE COMPETITION TO YOU
• CHECK OUT CORPORATE IMAGE MATERIALS

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YOUR BASIC PREMISE

• SURVIVAL OF THE JUNGLE APPLIES
• THE COMPETITION WILL DO ANYTHING TO SUCCEED
• THERE IS ACTION AND REACTION
• NOONE REALLY CARES EXCEPT YOU AND YOUR MOTHER

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NICE GUY
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CAPTURING DESCRIPTION

• IN A TABLE
• THEM
• STRENGTHS
• WEAKNESSES
• YOU
• NARRATIVE

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CAPTURING ANALYSIS

• ANALYSIS IS A BREAKING DOWN PROCESS
• INVOLVES COMPARISONS WITH WHAT IS RELATIVE TO
  WHAT COULD BE
• LOOK FOR SIMILARITIES AND DIFFERENCES
• THINK OF A FOOTBALL COACH ANALYZING A RECENT LOSS
  (QUARTER BY QUARTER, CATEGORY BY CATEGORY, MINUTE
  BY MINUTE, ETC.)

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WHAT IT LOOKS LIKE

• COMPETITION ANALYSIS
• The purpose of this analysis is to assess the
  strengths and weaknesses of competitors as
  defined by Your Fabulous Restaurant. Description
  of competitors will be followed by analysis
  looking for key success factors, competitive
  advantage and identification of distinctive
  competencies.

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THE CENTRAL EXHIBIT I
COMPETITOR STRENGTHS WEAKNESSES
ABC Fine Dining 662 West Alameda Drive Burbank, CA Established Good reputation parking limited dirty service questionable
XYZ Diner 1009 West Hollywood Avenue Santa Monica, CA Good value Good prices parking service spotty
MNO Foodstuffs 123 North Westwood Drive Brentwood, CA broad menu value pricing go the extra mile limited hours tries to be everything to everyone service poor
You Kill It, We Cook it Grill 111 North Lincoln Highway La Jolla, CA tasty food customer participates part of meal is show appeals to select market service uneven/poor must bring own raw stock
Your Fabulous Restaurant 111 In the Heart of Town Lane Pasadena, CA 25 parking spaces creative cuisine presentation of meal superior service worlds best bourbon baked wings unknown in community relatively small floor space access from street blocked
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THE CENTRAL EXHIBIT II
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THE CENTRAL EXHIBIT III
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THE CENTRAL EXHIBIT IV
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ENSURING THE READER SEES WHAT THEY ARE SUPPOSED
TO SEE

• Narrative/Discussion
• The purpose of this section is to highlight key
  features of the various competitors operations
  with a view to identifying key success factors,
  possible sources of competitive analysis and
  distinctive competencies.

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FINDING COMPETITIVE ADVANTAGE

• 5 SWEEPS THROUGH THE TABLE
• LOOKING FOR COMMONALITIES ACROSS ALL COMPETITORS
  IN STRENGTHS KSFs or Winning Formula or
  Conventional Wisdom of How IT is done
• LOOKING FOR DIFFERENCES BETWEEN COMPETITORS
  STRENGTHS AND YOUR STRENGTHS CA1
• LOOKING FOR DIFFERENCES BETWEEN COMPETITORS
  WEAKNESSES AND YOUR WEAKNESSES CA2
• LOOKING FOR DIFFERENCES BETWEEN COMPETITORS
  WEAKNESSES AND YOUR STRENGTHS CA3
• FINDING SOMETHING THAT YOU DO THAT NOONE ELSE
  DOES DISTINCTIVE COMPETENCE

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WHOSE SIGNATURE IS ALL OVER THIS?
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NECESSARY COMPONENTS OF A BEER COMMERCIAL

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KEY SUCCESS FACTORS

• ACCEPTED PRACTICES WITHIN THE INDUSTRY THAT
  REPRESENT MINIMUM THINGS THAT EVERYONE DOES
• STRAYING FROM THESE IS DONE AT YOUR PERIL OR AS
  PART OF YOUR GRAND PLAN TO BE DIFFERENT
• E.G.
• NOT PROVIDING PARKING
• NOT GIVING T SHIRTS/MOMENTO TO RUNNING RACE
  PARTICIPANTS
• NOT OFFERING THE USE OF CREDIT CARDS
• NO MEALS ON AIRLINES
• NO TECHNICAL SUPPORT FOR COMPUTER PURCHASES
• NO ASSIGNED SEATING ON PLANES

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COMPETITIVE ADVANTAGES

• PRICE
• SERVICE
• QUALITY
• VARIETY
• FLEXIBILITY
• CUSTOMIZATION
• SPEED
• BREADTH OF PRODUCT LINE

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DISTINCTIVE COMPETENCIES

• THINGS THAT YOU DO BETTER THAN ANYONE
• THINGS THAT YOU COULD BECOME KNOWN FOR IN THE
  INDUSTRY
• E.G.
• SIGNATURE MEAL (HONEYS WINGS)
• SIGNATURE HOLE ON A GOLF COURSE (PAR 3 7TH AT
  PEBBLE BEACH)
• ON TIME DEPARTURES OF PLANES (SOUTHWEST AIRLINES)
• SUPERIOR CUSTOMER SERVICE (4 SEASONS HOTEL)
• 24/7 SERVICE (IBM)
• YOU COME TO THEM WHEN THEY NEED YOU THE MOST ( )
• YOU NEVER LET THEM DOWN ( )
• ANIMATION (PIXAR STUDIOS)
• MOVIE SOUND (THX LABS)

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ENTIRE SECTION IS

• 3-4 PAGES MAXIMUM DOUBLE SPACED

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COMPETITION ANALYSIS BEYOND DESCRIPTION

• MICHAEL W. PICZAK
• JULY 2006