The aim is to provide an integrated way of thinking about industry and competitor analysis. Much of the conceptual inspiration is from the work of Professor Porter, and the concepts are described. The chapter shows how to operationalise these concepts, and suggests eight major stages in assessing the position of the industry and competitors. The steps include practical application tools developed to take the concepts into real situations. The chapter includes an outline questionnaire, which can be used as an aid to collecting information for industry and portfolio analysis.

An approach to competitor analysis

In the next two chapters we will explore some ideas about industry and competitor analysis. The concepts are discussed in this chapter, to be followed in Chapter 11 with a case history showing some of the applications. Industry analysis is a sort of half-way house between strengths and weakness analysis and strategy formulation. It provides another way of measuring the internal elements of the organisation against what is going on in the wider world, but it is also an essential to the formulation of sound future-oriented strategies. As we will see, there can also be a connection between industry analysis and portfolio analysis. The questionnaire in this chapter can be used both for industry analysis and to collect information for the directional policy matrix, which is described in more detail in a later chapter.

It is useful to think of the various components of industry and competitor analysis as a linked series of steps leading to...