Strategy implication
Applying the various theories and frameworks mentioned gives marketing researchers an understanding on who the company’s main competitors are. Nonetheless failing to incorporate both elements of the micro and macro environment will lead to a tunnel vision of the competitor analysis. Additionally, producing a comprehensive SWOT and PESTEL analysis will not give direct instructions to the strategist on how marketing strategies should be devised and implemented. This is a crucial point on why companies can become vulnerable when acting upon strategies based only on the competitors internal strengths.
Many forms of analysis merely scratch the surface of the competitors current visual and cultural situation and can provide little insight regarding how external factors can effect the industry and therefor competitors strategies. This belief is backed not only by the General Motor’s case but also Valentin (2001: 54-69), who states the limitations of the SWOT analysis and the lack …show more content…
Aforementioned, it can be in the best interests of the strategist to identify competitor strengths prior to their formulation possibly by looking into the competitor opportunities. Failing to do this will often result in companies being compelled to take a wait-and-see approach due to competitors gaining market advantage with innovative products - as noted in the Dyson case. Ofek E and Wathieu L (2010) highlight that failing to keep up with competitor opportunities and strengths can result in lost profit opportunities or wasteful investments in R&D (Ofek and Wathieu, 2010). Furthermore, companies who enter the market late are also at a disadvantage due to having less established economies of scale than
Applying the various theories and frameworks mentioned gives marketing researchers an understanding on who the company’s main competitors are. Nonetheless failing to incorporate both elements of the micro and macro environment will lead to a tunnel vision of the competitor analysis. Additionally, producing a comprehensive SWOT and PESTEL analysis will not give direct instructions to the strategist on how marketing strategies should be devised and implemented. This is a crucial point on why companies can become vulnerable when acting upon strategies based only on the competitors internal strengths.
Many forms of analysis merely scratch the surface of the competitors current visual and cultural situation and can provide little insight regarding how external factors can effect the industry and therefor competitors strategies. This belief is backed not only by the General Motor’s case but also Valentin (2001: 54-69), who states the limitations of the SWOT analysis and the lack …show more content…
Aforementioned, it can be in the best interests of the strategist to identify competitor strengths prior to their formulation possibly by looking into the competitor opportunities. Failing to do this will often result in companies being compelled to take a wait-and-see approach due to competitors gaining market advantage with innovative products - as noted in the Dyson case. Ofek E and Wathieu L (2010) highlight that failing to keep up with competitor opportunities and strengths can result in lost profit opportunities or wasteful investments in R&D (Ofek and Wathieu, 2010). Furthermore, companies who enter the market late are also at a disadvantage due to having less established economies of scale than