3.7: Competitive Analysis Summary

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In sum, to analyze a potential marketplace properly, it is best to begin with secondary data, data available from multiple sources. Think deeply about what you find, and any questions that information surfaces. These questions and concerns will drive your search for primary data, the data your research generates. Finally, you will form impressions and gut feelings about what you find – factor these elements into your competitive equation to formulate an appropriate strategy for the market.

Remember: Secondary analysis and Primary analysis + internal analysis = strategy

Sources of Information on Competitors - Primary

Review of competitors events or reader boards
Parking lot observations
Customer surveys
The use of mystery shoppers
Vendor inquiries
Nightly calls assessing availability
Speaking with competitors employees
Visiting competitors

Sources of information – Secondary

Financial websites
Company annual reports
Brochures and other collateral
Press releases
News articles
Business journals
Trade publications
Trade associations
Marketing material
Chambers of Commerce
Travel Agencies
Guest reviews posted on websites

Information you should try to obtain

Company’s historical background
Physical and online presence
Ownership and management entities
Analysis of key financial ratios
Products and services available and pending
Facility demand, capacity, and condition
Corporate and location specific marketing initiatives
Pricing strategies
Distribution strategies
Key personnel and cultural environment
Forward looking plans for acquisition, repositioning, and expansion or contraction.

The business should then develop a SWOT analysis (strength, weakness, opportunity, threat) for all of its competitors. Often from this process, your business may learn that its needs to adjust its competitive set. Afterwards, the business should conduct its own SWOT analysis. Following the development of the competitive SWOT and revision (if necessary) of the organizations SWOT, the company should apply the “5W’s) analysis to ask itself the following questions:

Who?

Who are our primary competitors? Are they aware of our business?
Who are their customers?

What?

What are their primary products and services?
What are their ancillary products and services?
What are their strengths?
What are their weaknesses?
What opportunities exist for our competitors?
What threats exist for our competitors?
What do they do better than we do?
What do we do better than they do?
What market segments and sub-segments do they attract and why?
What competitive advantages do they possess?
What distinctive competencies do they possess?

Where?

Where do they sell their products and services?
WHere do they operate?

When?

When their products and services are in high demand (time of day, week, month, or year)?
When do customers see them as their first choice for purchases?

Why?

Why do we compete directly with our competitive set?
Whey do consumers purchase their products and services?
Why do we compete directly with these organizations?

Common Opportunities

New demand generators entering the market.
Current demand generators expanding their operations within the market.
An upswing in the economy.
New technological advances.
Increased consumer propensity to spend.
Customizable bundling of hospitality products.
New and more effective channels of distribution.
New opportunities for segmentation.
Increased demand for newer products and greater services.
Current supply leaving the market.
Contraction of current supply.
No scheduled renovation or expansions of existing competitive supply.
Change in ownership or operational direction of top competitor(s).