Assignment Description At this point, you will have defined your market and completed a macro-environmental analysis.
The next task is to analyze the competitive environment, using the RiDUCES framework to analyze your organization’s structural position, the competitive dynamics it faces, and the opportunities and threats that exists in this competitive environment.
The task ends with a complete and detailed analysis of the strengths and weaknesses of both your organization as well as your primary competitors. RiDUCES ANALYSIS Use the RiDUCES model as a framework to complete a strategic-level analysis of your organization. The RiDUCES framework helps you to consider the following:
1. Your role in the supply chain. The supply chain includes downstream customers and consumers who purchase your product(s) and/or service(s), as well as upstream suppliers who sell you their product(s).
2. The competitive dynamics of rivalry. The rivalry dimension includes competitors who provide customers like yours with products like yours (competitors), as well as firms that produce products used in conjunction with yours (complementors). Competitive dynamics refers to the range of competitive tactics (innovation, business analytics, marketing, pricing, etc.) employed by your organization and your competitors in pursuit of competitive advantage; we might also say, in an attempt to capitalize on competitive environment opportunities and/or to mitigate competitive environment threats.
3. Substitution/entrant dimension. Your position vis-à-vis substitute products, services (and/or firms that produce goods and services) that can also meet the needs of your customers, and the firms that could become your rivals by entering your industry.
The objective of a RiDUCES analysis is precisely that: to analyze the world external to your organization and uncover existing or potential sources of your organization’s competitive advantage.
Additionally, your analysis should uncover existing or potential sources of competitive advantage enjoyed by other organizations that inhabit your world.
COMPETITOR ANALYSIS Competitor analysis involves collecting information about individual competitors in a market. Competitor intelligence has received more attention in the last few years for several reasons. First, many product categories are mature businesses with slow or zero growth rates, a situation that intensifies competitive pressures. Secondly, many managers feel that product life cycles are shortening, which requires shorter payback periods.
Finally, the last decade has perhaps been the most turbulent period faced by managers due to foreign competition, technology change, changing customer tastes and so on, all of which make errors of judgment about competition difficult to overcome. The description of competitors has six crucial elements. Essentially, competitor intelligence includes information about the firm’s:
(1) ability to conceive and design including business analytics and data capabilities. ]
(2) ability to produce,
(3) ability to market,
(4) ability to finance,
(5) ability to manage, and
(6) ability to adapt to changing conditions.
The general outline provided in the text Analysis for Marketing Planning by Lehmann and Winer is an excellent framework for presenting competitive information.
Your assignment is to provide competitor intelligence that
(a) includes the elements included in Figure 4-5 (attached) [Note: we have added item F— “ability to adapt to changing conditions”—to the authors’ original text.] and
(b) is presented in a format similar to Figure 4-7 (also attached). Include your own firm in the analysis; that is, how does your organization perform along the dimensions that you have identified as significant performance criteria describing your competitoriqus?
RiDUCES stands for: Rivals Downstream Upstream Complementors Entry/Exit Substitute Products