How to analyze the market competition
How to analyze the market competition, competition is a necessary means of social development to move forward, anywhere we can see the weak or self-elimination of the competition, backward people will only be abandoned by the trend of the times, the following share how to analyze the market competition.
How to analyze the market competition1There are generally 3 situations regarding the analysis of market competition:
Whether the target group is the same; whether the company has an advantage (pre-existing advantage/post-existing advantage); cross-industry competitors.
I. Whether the target group is consistent
Target groups and markets, different target groups will determine what business model the company enters.
For example, in the school learning students and off-campus learning students, the former company will be online learning platforms, offline teaching tools and mixed teaching resources, and for the off-campus learning students most of the companies will be used directly in the form of tutoring services to cut into the target group.
In most people's opinion, the above examples are like different solutions for the same target group in different environments, but in fact, they do not analyze the more essential factors, "what leads to two different scenarios", and it can be found that the learning level of the students and the level of teaching in the school will determine the students' appearances in which scenario.
Similarly, based on these two levels, there are many different groups of students, and many different target groups, and this is the target market segmentation.
Of course, if further segmentation can be found to affect the level of student learning and teaching level of the school factors, such as student attitudes towards learning due to family factors, students' learning ability, the economic development of the region where the school is located, etc., the market has not been subdivided to such an extent, and therefore is not in the current in-depth analysis.
The idea of segmentation is an essential analytical concept in the digital age.
But segmentation is not a good thing, what you see will constitute you, if it has always been on the basis of the current you to see new things, then you will always be you, not more possibilities for you, this will not be here to expand on the analysis of the "personalization era of the death of the" later.
Second, whether the company has an advantage
Determine the target group, the next step is to analyze whether the company will be able to stand out in the market, the following five factors are the key to determining whether the company can stand out:
Capital: capital, personnel, technology; brand: market awareness of the relevant areas; channels
Capital: money, people, and technology; brand: market recognition in the relevant field; channel: the ability to reach users; after-sales: the ability to continue to serve users; corporate culture: the culture of gathering strength.
1, capital
Capital determines the company's staying power in the market competition, sustained market investment, sustained R & D investment in product updates and iterations, until most of the competitors exhausted.
2, brand
Brand determines whether the user will buy, a good brand is the basis of the user's purchase, I think now there should be no one to buy Sanlu milk powder it. At the same time, the closer the brand is to the user's position, the higher the user's recognition of the brand, and the more the user will tend to favor the brand when making decisions.
3, channel
The channel determines the ability to reach the user, whether online or offline, the ability of the channel directly determines whether the product is able to reach the right user, and the user to establish a sustained positive connection, and to collect the correct user feedback to support the optimization of the product.
4, after-sales
Let the customer feel warm service.
After-sales here, must dare to break away, if their products to the user brings trouble, be brave to take responsibility. Mistakes are not terrible, terrible because of the existence of certain interests to make themselves then make mistakes, give up sunk costs is an attitude, correct their mistakes is a progress.
5, corporate culture
Corporate culture can be very important to really determine how far a company can go is not above the capital, brand, channels and after-sales, more essential some of the corporate culture.
Enterprise aggregation, you can get the brand, create a brand, expand the channel, enhance after-sales service, because these are the people who need to do, "need to do a good job".
Third, cross-industry competitors
Cross-industry competitors are scary existence, such as BATJMD, they have the capital, they can be any industry for the lowering of the dimension of the blow, any company has to consider their entry into their own field will cause the impact, and early development of the corresponding plan.
But for the most part it's just a matter of taking care of the opponents you're PKing and waiting for the years to pass.
How to analyze the market competition2
1, the assumption of perfect competition
Western economics assumptions are relatively crude, quite a lot of assumptions are unrealistic, for example, on the assumption of a perfectly competitive market, refers to competition is sufficient without any hindrance and interference in a market structure. In this type of market, the number of buyers and sellers is large, buyers and sellers are price takers, resources can flow freely, and information is complete. There is nothing wrong with such a theory if it is just for theory building. But the key problem is that many scholars will mistakenly use these crude theories to understand and predict the workings of the real-world economy, and even use these simplified theories to obscure actual inequalities in the marketplace.
Extreme neoliberalism goes so far as to argue that there is no market monopoly at all, and that all market participants face the same level of competition. Traditional economics, on the other hand, argues that there is market monopoly, but the analysis is still too crude. The reality is that different market positions face different levels of competition. If you want to quantify it, the level of competition can be categorized as -100, 100, from least intense to most intense.
2. The most competitive market: farmers for example
The bottom farmers, in fact, face the most intense competition, the most intense degree of competition in agriculture can be quantified as 100. because there are 900 million farmers in China, and each of them is basically facing (900 million - 1) so much competition. With such fierce competition, farmers' incomes are very, very low. So how can farmers raise their incomes? One way is to go modernize agriculture on a large scale, but this is no longer a farmer, it's a rancher. Another possible way is to engage in rural cooperatives to increase bargaining power. You can decentralize natural agriculture, but centralize bargaining and distribution.
In fact, the market price and the bargaining power of both sides of the transaction (including economic strength production scale market share and other factors) have a relationship. The same agricultural products, if the farmers themselves to sell the cheapest, if the rural cooperatives to sell some more expensive, if the rural monopoly organization to sell, that sky-high prices are also possible. This observation is open to empirical study. It can be found in the purchase transactions of large supermarkets that prices are more expensive if they are traded by way of trade organizations. If it is traded as an individual company, the price will be cheaper.
3. The most monopolistic markets: international finance as an example
The topmost elite, in fact, face less competition. In particular, the monopoly class, they face the least competition, the degree of least competition in the monopoly can be quantified as -100. in the transaction, the monopoly party has a very strong pricing power. Winners in a market are inclined and prone to move toward monopoly.
In international financial markets, for example, financial competition between countries is similar to competition between companies within a country. The United States in the international financial monopoly strength, the dollar is a monopoly currency, can be levied on the whole world mint species, while the dollar is the oil trading and gold trading settlement currency, the global economic take-off to buy oil, countries need the dollar, the global economic crisis to buy gold hedge, countries also need the dollar. Therefore, in the international financial market, in fact, the status of countries is very unequal. When there is a financial crisis, each country debt more bubble big will be the first to fall, this country bankrupt quality enterprises will be the United States of America low-priced acquisition, the country's capital will also be rapid outflow, generally also flows to the United States, if we buy gold hedge, the dollar is the settlement currency, will also push up the dollar. Because the U.S. dollar is the world monopoly currency, so even if the United States will fall is also the last to fall one. Therefore, international finance has never been a game of inequality. Latin American financial crisis, the Asian financial crisis ...... global emerging economies interests damaged, the U.S. financial instead of profit from it, and even the acquisition and control of important enterprises in other countries.
In the international financial market, and the absence of the rule of law constraining force. Who dares to challenge the hegemony of the dollar will be challenged by the United States. Originally, the euro can challenge the hegemony of the dollar, but now the euro through the Greek debt crisis and Britain's exit from the European Union and so on the impact, has been unable to compete with the dollar. Greek debt crisis, in fact, is the United States buried in the euro zone time bomb. In the future, the rise of China and the RMB is an important variable. However, challenges are also always there. The China-led Asian Investment Bank has been strenuously blocked by the U.S. government. In the first half of this year, the South China Sea crisis created by the U.S. government was also intended to strike a blow to the outside world's confidence in China, which was used to strike a blow to the credit of the yuan. Of course, in the short term, the yuan is unable to impact the dollar. At least for a period of time, the U.S. financial will be the monopoly of the international financial market. "The world has been suffering from the United States for a long time."
How to analyze the market competition3I. Market pattern
1. Market capacity and pattern
At present, how much capacity of the entire market, the competition pattern is roughly how. The more mature business areas, the major analysts will have professional consulting reports for reference, to help us get to the overall overview of the information. However, if our business field is just emerging, it is not so easy to see the market pattern. For example, each vertical industry SaaS.
From the author's field, in 2014 only one after another players to enter, are emerging startups, until the beginning of 2016, a few big giants began to layout. And the development trend of the mobile Internet and the external investment and financing environment have had a great impact on this field.
However, this does not affect our ability to arrive at a judgment on the overall trend, how big is the whole plate, what are the major players, and how do we respond, which is the basis of our business.
2, the potential growth market
In recent years, the rise of the `Internet thinking tells us countless small entry, small to big, first do the amount of cash after the story. But all the stories will return to the business value itself. If there is a ceiling on the market capacity of the current business area, then where will the product and company go next. We can look at what the potential growth markets are and how competitors are laying out in those places.
For example, a push service company, the layout after the C round is worth playing. And then 360, the first to do the antivirus, and then do security guards, and then do the browser, and then do the advertising game hardware and other ecological.
3, the main rival competitiveness assessment
Here rival competitiveness assessment, more rival company level evaluation. You can use Porter's five forces and other management models to do the analysis. Please refer to the management books for specific practices.
Second, the product and solution
1, competitors organizational structure
We can first understand the competitor's company organizational structure. What are some of the people in the management, what is the background and ability. This is from the public information and industry reputation, can know one or two. There are also products, technology, marketing, sales and other departments of the organizational structure, the number of personnel. As long as you usually do enough homework, you can also get, such as industry news, recruitment information.
2, the product in the competitor's internal position
This is more difficult. Need a variety of intelligence news cross-analysis, and then add the experience of deduction. The author's company business, for example, when we analyze the competition at the beginning of the year, a large domestic Internet company is also a competitor, but they did not launch a direct target of the product. However, I learned from a channel, its internal incubation of a similar project, and the company's current commercial products, the underlying technology can be used for research and development and our benchmark products. Later to the end of this year, the company launched a related commercial competitor. The big companies incubate projects, many for the purpose of testing the water, or to enrich the product matrix, so the project to get the resource support, in turn, not as good as the main one or two products of the startup.
3, product positioning and target customer segmentation
Even if the product is completely opposite, because different opponents of the resources and capabilities of different, product positioning and target users are also different. As the current market popularity of several fine data analysis tools. A main no buried point, high unit price, mainly to do large and medium-sized customers. B main private deployment, cost-effective, also to do large and medium-sized customers. C also main no buried point, low price, mainly to do small and medium-sized customers. The positioning and target users will determine the competitors' marketing, service, and sales strategies.
4, solution and core technology analysis
This belongs to other articles discussing the most competitive analysis. The difficulty here lies in the acquisition of intelligence, which is not as easy to obtain for enterprise products as it is for consumer products, especially some privately deployed software products. From a variety of public and non-public channels, access to competitors' product introductions, technical whitepapers, access to the trial of competing products, competing customers' feedback hood, industry conferences, competing against the company's departures, etc.. Easier said than done, difficult to do, but also involves a lot of gray level, not to expand.
5, the official website, the user background product analysis
The official website and the user background information is relatively easy to obtain. This can reflect the strength of competitors from the side. Mainly can look at the following aspects: functional structure, information architecture, user experience.
Three, marketing strategy
Generally speaking, the big manufacturers have strong financial strength, push the new high. Such as a large factory this year to push cloud services, because the entry into this field than several others have been slower than a beat, so from the level of close to the customer's business launched several products. First a few products alone to test the waters, do a year's time to examine. Then at the right time, integrated into a brand, in the company's brand endorsement, in the major technology media channels, offline exhibitions collective voice, and combined with KOL in a variety of products, technology circles to expand the brand impact.
In the advertising and SEM on the effect-oriented, bought out a large number of keywords and major advertising space, and strengthened the data monitoring constantly optimize the placement.
Comparatively speaking, startups have much less marketing tools and resources. Overall, it is necessary to do a good job of monitoring competing ads, SEM, trade shows, PR, and other marketing strategies.
Fourth, the service strategy
The level of service is an important factor in considering the business capabilities of an enterprise service provider. Although most enterprise service vendors are playing 7 * 24 such words, but in fact this is done up is very difficult.
The internal service resources and processes of the competitor may not be easily accessible, but it is possible to experience the quality of the docking service staff from trying out the competitor's products.
Specifically, how easy it is to get service support, how responsive they are in solving problems, and how complete and readable their technical support documentation is.
Fifth, sales and customer relations
This needs to be assessed in the competitor's sales organization, strategy and customer relations, pricing system, channel strategy several aspects. Some companies are long on product technology, some companies are long on sales and customer relations. In the circle of Internet enterprise services, many people come from traditional software or hardware equipment manufacturers. Then their companies will more or less hit the mark of these experiences.