jhu competitive analysis presentation

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Guest Lecture: Competitive Analysis August Jackson august (at) augustjackson (dot) net http://www.augustjackson.net http://www.twitter.com/8of12

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These are the slides on my favorite competitive analysis frameworks that I presented in my recent guest lecture at Johns Hopkins University

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Page 1: JHU Competitive Analysis Presentation

Guest Lecture: Competitive Analysis

August Jackson

august (at) augustjackson (dot) nethttp://www.augustjackson.nethttp://www.twitter.com/8of12

Page 2: JHU Competitive Analysis Presentation

Your Guest Lecturer

Web 2.0 Open Source Intelligence

RSS

Page 3: JHU Competitive Analysis Presentation

Where are we?

• Focus• Gather• Analyze• Apply

• Decisions• Assumptions• Unknowns• Intelligence Questions• Indicators• Sources• Analysis

Page 4: JHU Competitive Analysis Presentation

Analytical Process

Page 5: JHU Competitive Analysis Presentation

Choosing analytical frameworks

Page 6: JHU Competitive Analysis Presentation

How I choose: begin with the end in mind

Page 7: JHU Competitive Analysis Presentation
Page 8: JHU Competitive Analysis Presentation

FAROUT to evaluate analytical frameworks

Analytical Method

Future Orientation

Accuracy Resource-Efficiency

Objectivity Usefulness Timeliness

Stakeholder Analysis

Present to short-term

Medium Medium Medium Medium Medium to high

Business Screening Matrix

Present to short-term

Low to medium

Medium Low Medium Medium

SWOT/TOWS

Present to short-term

Medium Medium Low to Medium

Medium to high

Medium to high

Industry Analysis

Present Medium Medium to high

Medium Medium to high

Medium

Scenario Analysis

Long-term Medium to high

Low to medium

Medium Medium to high

Low to medium

Win/Loss Analysis

Present Medium to high

Low Low to Medium

Medium to high

Low

Page 9: JHU Competitive Analysis Presentation

Strategic analysis: STEEP and PEST

STEEP• Social• Technological• Economic• Environmental• Political

PEST• Political• Economic• Social• Technological

Analytical Method

Future Orientation

Accuracy Resource-Efficiency

Objectivity Usefulness Timeliness

STEEP Long-term Medium High Medium Medium High

PEST Long-term Medium High Medium Medium High

Page 10: JHU Competitive Analysis Presentation

STEEP example: beer

Social Technological Economic Environmental Political

• Drink preferences for Millenials trend towards cocktails• “Hipster” adoption of down market brands such as PBR

• Biotechnology contributions to fermentation• New packaging technologies

• Reduction in disposable income in the West• Growing affluence and income in China, India and Brazil

• Climate change impact on growing wheat, barley and hops• Conflicts over access to water for agriculture

• Current debate on lowering US drinking age to 18• US Government budget deficit and search for new income sources

Adapted from Garland, Eric (2007). Future, Inc: How Businesses can Anticipate and Profit from What’s Next Peck, Garrett (2009). The Prohibition Hangover: Alcohol in America from Demon Rum to Cult Cabernet.

Page 11: JHU Competitive Analysis Presentation

Market analysis: market trend analysis

Diffusion of Innovation Theory

“Where are we on this curve?”

Analytical Method

Future Orientation

Accuracy Resource-Efficiency

Objectivity Usefulness Timeliness

Market Trend Analysis

Short-term Medium High High Low High

Page 12: JHU Competitive Analysis Presentation

Market analysis: market trend analysis

Gartner Hype Cycle

Page 13: JHU Competitive Analysis Presentation

Market analysis: disruptive technology model

“Is there a technology out there that can disrupt out market?”

Page 14: JHU Competitive Analysis Presentation

Market analysis: drivers and inhibitors

Drivers

• Factors that motivate adoption, growth• Technological change• Value drivers for customers

Drivers

• Factors that motivate adoption, growth• Technological change• Value drivers for customers

Inhibitors

• Factors preventing adoption• Customer switching costs• Steep knowledge or experience curve• Uncertainty

Inhibitors

• Factors preventing adoption• Customer switching costs• Steep knowledge or experience curve• Uncertainty

Page 15: JHU Competitive Analysis Presentation

Industry analysis: Porter five forces

Analytical Method

Future Orientation

Accuracy Resource-Efficiency

Objectivity Usefulness Timeliness

Five Forces Present to short-term

Medium to High

High Low Medium Medium

Page 16: JHU Competitive Analysis Presentation

Five forces example: defend low entry barriers

Barriers to Entry• High entry costs• High customer switching

costs• Established brands and

differentiation• Regulation

Strategies to Defend Entry• Keep prices low• Regulatory rent-seeking• Long-term exclusive

contracts with customers and distributors

Page 17: JHU Competitive Analysis Presentation

Industry analysis: value net analysis

Your FirmCompetitors Complementors

Suppliers

Customers

Analytical Method

Future Orientation

Accuracy Resource-Efficiency

Objectivity Usefulness Timeliness

Five Forces Present to short-term

Medium to High

High Low Medium Medium

Page 18: JHU Competitive Analysis Presentation

Industry analysis: value net analysis

Example: Google, AT&T, Verizon Wireless and the FCC in the 2008 700 MHz Wireless Spectrum Auction

Page 19: JHU Competitive Analysis Presentation

Company analysis: business screening matrices

Analytical Method

Future Orientation

Accuracy Resource-Efficiency

Objectivity Usefulness Timeliness

Business Screening Matrix

Present to short-term

Low to medium

Medium Low Medium Medium

Page 20: JHU Competitive Analysis Presentation

Business attractiveness screening matrix

High Medium Low

High Invest to grow the business

Invest selectively, expand where feasible

Focus on income potential

Medium Invest selectively, expand where feasible

Develop selectively for income potential

Harvest or divest

Low Develop selectively and grow on strengths

Evaluate harvesting these businesses

Divest

Business Attractiveness In

dust

ry A

ttra

ctive

ness

Page 21: JHU Competitive Analysis Presentation

Company analysis: SWOT

Analytical Method

Future Orientation

Accuracy Resource-Efficiency

Objectivity Usefulness Timeliness

SWOT/TOWS Present to short-term

Medium Medium Low to Medium

Medium to high

Medium to high

Page 22: JHU Competitive Analysis Presentation

Company analysis: TOWS