Competitive Analysis and Strategy

Learning outcomes

1. Explain why competitor analysis is important.
2. Apply Porter’s Five Forces to assess industry dynamics.
3. Differentiate between Leader, Challenger, Follower, and Nicher strategies.
4. Conduct a short competitor profile exercise.

Scenario hook

Imagine you’re opening a café in Paris or a country you are currently residing. There are big chains like Starbucks, niche artisan coffee shops, and new delivery-only brands. How do you position yourself?

Why analyze competitors?

• Critical for marketing planning
• Helps identify strengths/weaknesses
• Competitors can be threats and partners
• Reflection prompt: Think of a company you admire. How do they stand out from competitors?

Porter’s Five Forces

• Rivalry among competitors
• Threat of new entrants
• Threat of substitutes
• Bargaining power of buyers
• Bargaining power of suppliers

Four levels of competition

• Product form: Coca-Cola vs Pepsi
• Product category: Coke vs fruit juice
• Generic: Coke vs bottled water
• Budget: Coke vs other discretionary spending

Market roles

• Leader: expands/defends market share (Coca-Cola, McDonald’s)
• Challenger: attacks to gain share (Pepsi, Burger King)
• Follower: imitates, avoids big risks (smaller chains)
• Nicher: focuses on a specialised segment (craft coffee shops)

Summary & completion

• Competitor analysis helps spot opportunities and threats
• Porter’s Five Forces + levels of competition = key tools
• Strategies differ for leaders, challengers, followers, nichers
• Congratulations – you’ve completed this 1-hour micro-credential!
• Instructions: Claim your badge/certificate upon completion of the quiz