The importance of competitor analysis for franchises
Marketing is the process of finding out what consumers want, and then providing it for them. However, meeting the needs of customers alone is not enough to guarantee success. The real challenge for franchises is the ability to satisfy customer needs better than their competitors.
By Gerhard van Wyk
Effective competitor analysis starts with answering the following questions (Jooste et al, (2009)):
Know your competition – who are your present and potential competitors?
Although the answer to this question might seem straightforward, it is often more complex than it first appears. Franchises must consider that competitors don’t always offer the same or similar products or services and that what you are really competing for, is available customer spend. Airtime or Ice Cream?- this is but one example of two totally unrelated products that compete for the same available customer spend.
Analyse strategic groups - what positions have your competitors established in the market?
Competitors can initially be categorised into groups based on the similarities and differences in the strategies they pursue. A focused approach and the conceptualisation of strategic groups makes competitor analysis more manageable and can assist franchises to improve their success rate during strategy implementation.
Understand your competitor’s strategic objectives and thrusts
Franchises will benefit from understanding their competitor’s objectives and thrusts and using it to guide their own strategic decisions. Analysing competitor objectives offers insight as to whether they are satisfied with their current profit and market position. This may serve as an indication of how likely they are to retain their present strategy, especially when the competitor makes particular strategic moves.
Consider your competitor’s past and present strategies
By assessing their target market and differential advantages and reviewing their past and present marketing strategies Franchises can evaluate their competitor’s success in achieving their objectives and implementing their strategies. Past strategies, for example, will provide insight into failures and reveal how organisations engineered changes.
Know your competitor’s strengths and weaknesses
A business’ ability to successfully implement its strategies and achieve its goals is dependent on its resources and capabilities. Recognising your competitor’s strengths and weaknesses is an important prerequisite for developing a successful competitive strategy. Astute franchises will use their own strengths to take advantage of a competitor’s weaknesses.
Anticipate your competitor’s response patterns
A major objective of competitor analysis is the ability to predict a competitor’s responses to market and competitive challenges. Franchises could minimise their risk exposure by employing scenario planning and developing counter-response strategies to guide them in the implementation of their own strategies and plans.
Franchises who take the time to know and understand their competitors can use the lessons learnt to ensure the success of their own marketing strategy and avoid costly marketing mistakes.
vanwykg@mweb.co.za
+27 71 481 9956
By Gerhard van Wyk
Effective competitor analysis starts with answering the following questions (Jooste et al, (2009)):
Know your competition – who are your present and potential competitors?
Although the answer to this question might seem straightforward, it is often more complex than it first appears. Franchises must consider that competitors don’t always offer the same or similar products or services and that what you are really competing for, is available customer spend. Airtime or Ice Cream?- this is but one example of two totally unrelated products that compete for the same available customer spend.
Analyse strategic groups - what positions have your competitors established in the market?
Competitors can initially be categorised into groups based on the similarities and differences in the strategies they pursue. A focused approach and the conceptualisation of strategic groups makes competitor analysis more manageable and can assist franchises to improve their success rate during strategy implementation.
Understand your competitor’s strategic objectives and thrusts
Franchises will benefit from understanding their competitor’s objectives and thrusts and using it to guide their own strategic decisions. Analysing competitor objectives offers insight as to whether they are satisfied with their current profit and market position. This may serve as an indication of how likely they are to retain their present strategy, especially when the competitor makes particular strategic moves.
Consider your competitor’s past and present strategies
By assessing their target market and differential advantages and reviewing their past and present marketing strategies Franchises can evaluate their competitor’s success in achieving their objectives and implementing their strategies. Past strategies, for example, will provide insight into failures and reveal how organisations engineered changes.
Know your competitor’s strengths and weaknesses
A business’ ability to successfully implement its strategies and achieve its goals is dependent on its resources and capabilities. Recognising your competitor’s strengths and weaknesses is an important prerequisite for developing a successful competitive strategy. Astute franchises will use their own strengths to take advantage of a competitor’s weaknesses.
Anticipate your competitor’s response patterns
A major objective of competitor analysis is the ability to predict a competitor’s responses to market and competitive challenges. Franchises could minimise their risk exposure by employing scenario planning and developing counter-response strategies to guide them in the implementation of their own strategies and plans.
Franchises who take the time to know and understand their competitors can use the lessons learnt to ensure the success of their own marketing strategy and avoid costly marketing mistakes.
vanwykg@mweb.co.za
+27 71 481 9956
This is really very nice stuff about Franchise business. Now a days competition is increasing between each businesses day by day. Using franchise you can grow your own business rapidly.
ReplyDeleteown a franchise
This is one of the vital parts of a business plan that plays an important role in determining a franchise's success. A SWOT analysis should help you identify your franchise's weakness, which will help you strengthen your marketing plan in general. First, you need to identify the internal factors that can help or hinder your business before digging into the external factors.
ReplyDeleteRegards,
Joseph
“The real challenge for franchises is the ability to satisfy customer needs better than their competitors.” – I totally agree with this statement. Businesses in line with food and services must not only satisfy the customer, but must also know the strengths and weaknesses of their competitor. This way, they can have different marketing strategies that can overpower their competitors and attract more customers to satisfy.
ReplyDelete- Clint Shaff -