Strengths of competitive analysis
Competitive analysis takes into consideration the following factors;
Strong branding portfolio
This factor of strength requires a creative and effective strategy in branding. It is, however, challenging and difficult. You find that, in most cases, the brands in the market generate a lot of customer confusion, mixed opportunities and inefficiencies. Strong branding becomes strength in an organization because it makes sure that each brand has a defined role that it plays in every product market context. This therefore, puts the organization at a better position.
It is also the strength because it helps identify strategic brands that play a driver role in promoting other major products or businesses in future (Daft, Kendrick & Vershinina, 2010). This is important for every business because every business or organization hopes to grow and improve and make a profit.
Branding also is a strength in an organization, in the sense that it helps understand the roles of super-brands and other forms of endorsed brands when deciding on how to brand new offerings. Brand portfolio strategy is connected to many business strategies which include specifications of product- market growth directions and value propositions. This is a good strength because a success in the branding of a product endorses the success of the business strategy.
Strong research and development
This is another example of strength in competitive analysis. It is every important to have a clear and sound understanding of the competition. Research and development are good strategies that help in strengthening competition. These might require an organization to hire professionals who are tasked to track competitors and do the assessment of the competitive landscape regularly. Adopting technology in this strategy is important to make the work fast and easier through internet. Conducting competitive assessment is a continuous process where an organization or business is required to continue understanding the strengths and weaknesses of his competitors. Understanding the kind of environment one is operating in is strength to an organization because one is able to make good strategies and ensure smooth operations.
This is another essential requirement in competitive analysis. Ability to provide high quality products makes the organization and business at a better position because it attracts clients and hence, makes marketing easier.
Weaknesses in competitive analysis
One of the greatest weaknesses in competitive analysis in an organization is selling products across many sectors. This prevents the organization to have the required flexibility of its more focused competitors. Flexibility is required in any line of businesses because things and trends keep changing over a period of time. So it is important to maintain a certain level of flexibility which most organizations and businesses are unable to do.
Another weakness arises when it is difficult to find and retain employees. This causes inconsistencies and disruption which may interfere with the results of an organization.
Lack of customer loyalty is another weakness in competitive analysis in an organization. For proper tracking and research and development there is the need for customer loyalty.
Product pricing is another crucial factor that may compromise the competitive analysis especially if it keeps fluctuating within a short period of time.
Opportunities in competitive analysis
Co branding is the main opportunity in competitive analysis with other stakeholders and growth of the organization.
Threats in competitive analysis
The main threats include; volatile resource cost, slow growth, increasing labor costs, government regulations and changing consumer habits.
Trends in competitive analysis
Their main trends in competitive analysis may depend on factors technological advancements, government regulations among others.
Strengths in Technological
Technology has a high potential to make work easier, faster and accurate. Strengths in technology include creating platform for easy customer appeal through advertisement and eventually marketing. Technology also makes communication easy, for example, between the suppliers and the organization (Daft, Kendrick & Vershinina, 2010). The availability of collecting and analyzing data using technology helps the organization to understand the dynamics and take accurate measures and decisions. Technology has a great potential to increase customer loyalty through consistent communication.
Weaknesses in technology
The weakness in technology includes the lack of good internal focus. Technology has a high potential to deviate the internal focus to making the focus of an organization concentrate on the expansion. Technology also has its weakness in promoting a cross-functional way of management within an organization. It increases the total cost of expense of running an organization with a significant percentage.
Opportunities in technology
One of the greatest opportunities is that the technology itself advances and has then the potential to reduce operation costs of the organization and can as well increase sales through easy marketing through internet.
Trends in technology
This has the capacity to improve the profits of the organization through adequate services of professionals and resources.
Threats in technology
The main threat in technology is that it makes the number of competitors to increase rapidly since majority of people are able to start online forms of business. These increase the number of products in market causing market saturation.
Strengths of leadership
Leadership is an important internal factor that can be a strength if it is objective and creative. Leadership creates diversity in operations and brings uniqueness in operations of the organization. This is important in creating a high level of competition between organizations and products. Leadership creates opportunities for growth and development and ultimately provides success. Leadership has the potential to make strong brands.
Weakness in leadership
The leadership can franchise operations and might fail to take advantage of best management positions and talents.
Opportunities in leadership
Leadership creates opportunities in diverse markets ranging from local to international levels.
If the leadership is keen enough it is able to consolidate small players and expand it potential especially during volatile economic conditions.
Threats in leadership
Leadership can change the consumer habits and make loyal customers move to other ventures. Leadership is a threat through increase in labor costs.
Trends in leadership
Leadership is a crucial factor, and good leadership increases the chances of success for every organization with a significant percentage.
Good social relation increases the productivity of the employees, increases motivations and causes the organization to have a good reputation (Daft, Kendrick & Vershinina, 2010). Good relationship with suppliers promotes good business operations.
If the relationship within an organization among the employees is not good, it might lead to high employee turnover within a short time causing instability. Lack of good coordination in the organization is due to poor social relations affect organization performance.
Opportunities in social
Social connections are a good opportunity to increase the growth and development of the organization.
Threats in social
Social disruption within the market may cause variance in the expected customer consumption. It may also cause price volatility.
Trends in social
A change in lifestyle and price changes may cause certain social trends.
Strengths in resources
Availability of resources helps in creating strong brand recognition. It also increases influence and power over other competitors.
Weaknesses of resources
Resources within a certain geographical can affect international operations.
Opportunities in resources
Resources help create opportunities in specific areas of market creating competency. Continuous availability of resources creates room for consolidation.
Threats in resources
Resources are subject to frequent review of use by government policies and regulations. Availability of resources may also cause intense competition.
Trends in resources
Environmental considerations are a huge concern in the way resources are utilized especially on natural resources.
Strengths in strategies
Strategies create diversity in operation and help target different markets. They also help create good quality provision attracting more markets and creating demands.
Weaknesses in strategies
Certain strategies may reduce the chances of taking advantage of talents and positions available in management.
Opportunities in strategies
Strategy creates opportunity into best of the markets and unexploited markets.
Threats in strategies
Strategy may cause a slowdown in consumers. If the strategies are not effective, they may put an organization at a disadvantage.
Trends in strategies
Strategy is a crucial factor and requires proper market analysis. Organizations can seek professional services for developing strategies and conduct research.
Strengths in legal and regulatory
Rights and freedoms of workers in an organization may create value and motivated employees leading to high productivity. Regulatory and legal actions help control unfair competition and practices.
Weaknesses of legal and regulatory
Bureaucracy due to legal and regulatory procedures may reduce the chances of high competitiveness. It may affect effective pricing making products expensive.
Opportunities of legal and regulatory
They help promote the expansion of operations ranging from local to international. Good regulations ensure the safety of workers and effective operations.
Threats of legal and regulatory
They may cause volatility in pricing and can cause unhealthy competition. Some regulations create ever increasing number of competitors.
Trends in legal and regulatory
Legal and regulatory measures contribute to trends when they affect the pricing.
Daft, R., Kendrick, M. & Vershinina, N. (2010). Management. Andover: South- Western/Cengage Learning.