Competitive Analysis

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CompetitiveAnalysis

CompetitiveAnalysis

Itis always very healthy for an entrepreneur to comprehend aboutanything that concerns his/her competitors. In my business there areno direct competitors, but there exists one who offers substituteproducts.

  1. Competitors

Thereare five major competitors which are already in the market. Theyinclude: –

  1. Nice company located in almost every street in the town.

  2. Digitech manufacturers located in the Al-Shuhuda street.

  3. Bright health solutions located along town streets.

  4. Timu brain booster manufactures located in Soor Lane.

  5. Other small businesses located in town and rural areas.

MarketShare

Themarket shares of one’s business in a given economic locationinfluences the future growth of the business. According to theresearch I conducted, in Kuwait, there is a possibility of mybusiness occupy 10% of the whole market share putting in mind thecompetitors who already exist in the market.

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Currentlythere are five major competitors in the market who occupy the othershare. They include: –

  • Nice company which has 40% of the market share

  • Digitech manufacturers, which has 16% of the market share

  • Bright health solutions which has 20% of the market share

  • Timu brain booster manufactures which has 10% of the market share

  • Other small electrical retail shops which occupy 4% of the market share

Mathematicallythere is a 10% of the market share, which is not occupied which Iintend my business to occupy as shown in the pie chart below

Thereare a number of reasons why I choose the 10% market share.

Fastgiven it the fast time I am venturing into the business, it is areasonable risk to engage in.

Theexistence of other business which is already established shows thatthey may have a monopoly power when it comes to customers, hence, lowshare as the business is concerned.

Thereis a need to understand the type of business in which the industry isoperating. The structure and the trends of the company will help todetermine the current and future attractiveness of the business. Thelevel of the competition is usually analyzed by the following:

  1. Rivalry among competitors. Here the company need to consider how many competitors are available and their magnitude of their capabilities. Whenever the competitors are many the company need to produce high-quality products. If no competitors, then the company will enjoy tremendous strength Ball, Queyranne. (2009).

  2. Threats of potential entrants. The ability of people to enter in the market is determined by cost needed to enter the market and economies of scale. If these are little, then it is easy to enter in the market. My company is making a new product with a specific purpose not directly related to the existing company Kickert. (2007).

  3. Substitute products or services. The ability of the customer to find a different product which has a similar purpose to your products. If the product is unique in the market in its appearance and its use, then it will enjoy huge sales. In my business there are substitute goods, although my product has a specific purpose to brain compared to them Chang, Liu. (2008).

iv.Bargainingpower of competitors.This is a situation where one decides the buyers buying price. Thisis determined by a number of buyers willing to buy from yourbusiness, the cost they can incur from shifting from your products tosomeone else. If the business has few buyers, then they can dictatethe prices.

  1. Bargaining power of suppliers. this Is determined by the supplier’s ability to drive prices. It is determined by the number of suppliers available, the product uniqueness, strength and the cost they can incur by shifting to another. If the suppliers are powerful then they can be able to dominate the market Tontini, Silveira. (2007).

SWOTAnalysis

Allthe competitors have got their strength and weakness as shown on thetable below

COMPETITOR

STRENGHS

WEAKNESS

Nice company

  • Large pool of customers

  • Existence of segmented market within buyers

  • Good advertising. It uses mass media

  • Pricing. Goods are quite expensive

  • Poor customer-seller relationship

Digitech manufacturers

  • Modern layout. Very attractive

  • Strategically located

  • Offers good after sales services

  • Pricing. Goods are bit expensive

  • Reserved for a given class of people

  • Not known in rural areas

Bright health solutions

  • Good customer relations

  • Almost all goods and services under one roof

  • Well known

  • Non-compliance with law. They evade tax.

  • Only known in the urban part of the county

  • Pricing. Quite expensive

Timu brain booster manufactures.

  • Good marketing knowledge.

  • Good advertising skills

  • Has a partnership with some production companies.

  • Pricing. Very expensive

  • No after sale service offered

Other small manufacturers.

  • Good customer relations

  • Fair pricing’

  • Located in both rural and urban areas

  • Not deal with all goods

  • Lack of marketing and sales knowledge

HenceI will capitalize on the weaknesses of the competitors in general.This will help my business acquire the targeted number of customersfor the survival purpose. Through this analysis I realized thefollowing opportunities and threat for my business

OPPORTUNITIES

THREATES

  • Large market shares in youths and learning institutions

  • Favourable environment as government policies are concerned

  • Lack of support from the existing enterprises

a)Internal &amp external competitive analysis.

Theseare factors which are likely to affect the production process. Theyare divided into two. Internal factors and external factors

InternalFactors

  • The skills of the technicians and salespersons will highly affect the production process. The better their skills, the better the production.

  • Theft will also affect the production process. In case goods are stolen on their transportation process this will affect production.

  • Accidents also might affect production. In the event of a fire break out, the production process will be affected.

  • Less stock is also likely to affect production when there is a delay in the delivery of goods Oral, Mıstıkoglu. (2007).

ExternalFactors

Thereare a number of external factors that are likely to affect theoperations of the business. They include:

  • Political instability. This will adversely chase away potential customers given that currently a lot of customers are people from other countries who are coming to Kuwait for education and business.

  • Secondly, natural calamities are likely to affect the business. Example, when the rain fails the cost of electricity bills increases due to the generation of power by other means. This reduces the number of people acquiring the electrical product.

  • The existence of stronger businesses in the market, when there is already established businesses set in the market, the market share the business intends to occupy will drastically reduce which will not be good for the business.

  • Consequently, technical know-how is likely to affect the business. When new product set in the market due to the trends in the business and the technicians cannot comfortably handle them, this will frustrate customers and scare them away Reineke, &amp Grund. (2008).

Plansto Overcome Internal Factors

  • The technicians will be trained regularly in relation to a new product in the market. This will boost the esteem of the customer to continue purchasing in my business.

  • The premises will be fitted with a CCTV camera which will be surveying the premises day and night. Also, the company will obtain a personal fidelity guarantee policy to ensure goods lost can be compensated.

  • Proper electricity installation and maintenance will be done to minimize the chance of an accident occurring. Fire extinguishers will also be regularly checked that they are in good order.

  • The company will ensure that good are produced in surplus to make sure that there will be no shortage of goods in the market. This will ensure that there will be a regular supply even if there is power breakdown or machine stoppage Fleisher. (2007).

b)Resource-Based Analysis of Competitive Advantage

Competitiveadvantage is the strategies that the company needs to use to outdoother business in the market.

Resources:these are what the business use in the production process. Forinstance, capital and the employee skills.

Dutiesand Responsibilities of The Manager

Forthe business to achieve its objectives and goals, the manager needsto perform the functions of management effectively, efficiently andeconomically.

Themanager will determine directions of the organization and informemployees and other parties involved what the business is seeking toachieve. Hence, he will be the role model to workers and customersFleisher, Bensoussan. (2015).

Themanager will show subordinate how to do things and how to performunder pressure leading, through training and motivating employees.

Themanager will also serve as the link between people and organizationrelated to the business, like manufacturing

Themanager will also play a role as the spoke man of the business. Hewill be relaying information to people within and outside theorganization.

Themanager will be also the overall decision maker. He will be theencourager of change and innovation. He will also handle disturbance,resource allocation, and negotiator when it comes to businesspartners He, Zha, Li. (2013).

Themanager will also play entrepreneur roles. He will come up withstrategies to see that the short term and long term goals areachieved

Itwill also be the role of the manager that the goods and services ofthe business meet the required standards. For faster marketing of thebusiness.

Also,as the growing technology demands, it will the responsibility of themanager to ensure that the trending technology is combined withmanpower and resources to yield the highest profit.

3.2Key Parsonnels and Their Qualifications And Duties

Thetable below shows the qualifications and duties of all the personnelwho will be required by the business.

QUALIFICATIONS

  • DUTIES/RESPONSIBILITIES

Assistant manager

  • Should be holder of a bachelor degree in business administration or bachelor of science in chemical engineering.

  • A minimum working experience of 6 months.

  • Morally upright.

  • No criminal record.

  • He/she should pinpoint any unexpected problems that may be harmful to the business.

  • He/she will be involved in putting the plan and organizational/structural in action

  • He/she will be evaluating cost, profit and employee participation, quality of merchandise and time used in getting the product/service to the business and to customers

Accountant

  • Should be a holder of a degree in accounting from a recognized institution.

  • At least 2 years of working experience

  • Should be 25 years and above

  • Computer literate

  • Bookkeeping

  • Balancing trading profit and loss accounts.

Sales persons (2)

  • Should be A holder of sales and marketing certificate

  • Should have worked in the same field for not less than 2 years

  • Good communication skills.

  • Sales of product and advising customers on usage and directing customers to the manager who need to get into contracts with the business

Production technicians

(6)

  • Should be a holder of diploma in chemical engineering with at least 5 years working experience

  • Should have good communication skills

  • Should be computer literate.

  • Involved in the production process.

  • Be involved in quality analysis of the products.

Security officer

  • Should have an O level certificate

  • Should have good communication skills

  • Strong

  • Keeping vigilant security during night and day

  • Inspecting loading and offloading of goods

Cleaner

  • Should have an O level certificate

  • Cleaning the premise

Sourcesof capital

Personalfunds, friend’s contribution, venture capital and loans from banks.

References

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Fleisher,C. S. (2007). Businessand competitive analysis.FT Press.

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