Explain how organizations might most effectively analyze their competitive position in the market.
In addressing this task you should discuss:
i. What is meant by ‘competitive position’ and why it is important to ensure that this is both distinctive and meaningful/valuable to consumers
ii. Why organisations should develop an effective understanding of the external marketing environment (at the macro and micro-level), what the consequences might be if they don’t, and how they might most effectively achieve this. Illustrate this part of your discussion with real world examples.
iii. Why organisations should develop an understanding of consumer needs, behaviours and conceptions of value, what the consequences might be if they don’t, and how they might most effectively do it. Illustrate this part of your discussion with real world examples.
iv. How organisations might conceptualise sources of competition and identify current and potential competitors. Illustrate this part of your discussion with real world examples.
v. Why organisations must understand how they are perceived in relation to their key competitors by consumers and other stakeholders, and how they might most effectively do this (e.g. by understanding their own strengths/weaknesses/value propositions in comparison to direct competitors, identifying key points/bases of differentiation, understanding and visualising consumer perceptions).
Define the market: The first step is to define the market in which the organization operates. This includes identifying the products or services offered, the target customers, and the competitors.
Identify the competition: Once the market is defined, it is important to identify the organization’s direct and indirect competitors. This can be done by analyzing the strengths, weaknesses, opportunities, and threats (SWOT) of the organization and its competitors.
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Assess market trends: Organizations should also assess the market trends and changes in consumer behavior that may impact their competitive position. This can be done by monitoring industry publications, attending trade shows, and engaging with customers through surveys and focus groups.
Evaluate own strengths and weaknesses: It is important for organizations to evaluate their own strengths and weaknesses in relation to their competitors. This can be done by analyzing financial reports, customer satisfaction surveys, and employee feedback.
Develop a strategy: Based on the analysis, the organization should develop a strategy to improve its competitive position. This may include adjusting pricing, improving marketing techniques, expanding product offerings, or investing in research and development.
Monitor progress: Once the strategy is implemented, the organization should monitor its progress regularly and make adjustments as needed. This includes tracking sales, customer feedback, and market trends.
Overall, analyzing the competitive position in the market is an ongoing process that requires regular monitoring and adjustment. By following these steps, organizations can effectively analyze their competitive position and take actions to improve it.