Business and Competitive Analysis: Effective Application of New and Classic Methods

Description

Cover Contents Acknowledgments About the Authors Preface 1 Business and Competitive Analysis: Definition, Context, and Benefits Understanding the Terminology Competitive Strategic Analysis Intelligence Analysis as a Component in the Intelligence Cycle Competitive Analysis and Decision Making The Competitive Context Facing Contemporary Enterprises Contemporary Context Facing the Analyst Shifting Organizational Priorities for Analysts and Analysis Summary References Endnotes 2 Performing the Analysis Process Understanding the Customers of Analysis Defining the Analysis Problem Identifying the Scope of the Analysis Intelligence Analysis at Differing Organizational Levels Strategic Intelligence Analysis (SIA) Tactical Intelligence Analysis (TIA) Operational Intelligence Analysis (OIA) Evaluating the Inputs to Analysis Making Sense of the Analysis Facts Perceptions Beliefs Assumptions Projections Synthesis Infrastructure to Support the Analysis Process Intelligence Solutions Limitations of Intelligence Solutions Managing the Internal Network Managing the External Network Proactivity, Efficiency, and Perpetual Learning Summary Fleisher and Bensoussan's 10 Commandments for Business and Competitive Analysis References Endnotes 3 Avoiding Analysis Pitfalls Analysis of Failure Failure Location Sources of Failure Four-Level Hierarchical Model of Analysis Failures Individual Analyst-Level Failures Analysis Task-Level Failures Internal Organizational-Level Failures External Environment-Level Failures Overcoming the Barriers and Improving Analysis Performance Provide Empowerment Realize the Value of Analysis Value the Link Between Analysis and Success Ask the Right Questions Develop Recognized Analysis Training Measure Performance Appropriately Position the Analyst Correctly Provide the Right Tools Differentiate the Task Summary References Endnotes 4 Communicating Analysis Results The Art of Effective Communication Packaging the Results of Your Analysis Delivering the Message Face-to-Face Briefings Written Reports and Briefings Presentations in Meetings, Seminars, and Workshops E-Mail/Instant Messaging Intelligence Systems Exercises and Planning Sessions Common Products and Reports Used by Analysts News Bulletins and Newsletters Assessments Competitor Profiles Strategic Impact Worksheets Intelligence Briefings Situation Analysis Special Intelligence Summaries Creating the Report Communication Difficulties Faced by Analysts Effective Listening and Answering the Questions of Decision Makers Conduct Communication Follow-Up and Gather Feedback Pragmatic Considerations Summary References Endnotes 5 Applying the FAROUT Method Applying the Techniques An Evaluation Scheme for Assessing the Adequacy of Tools and Techniques: FAROUT Using the FAROUT Rating System References Endnotes 6 Industry Analysis (The Nine Forces) Short Description Background General Environment Operating Environment/Industry Analysis Internal Environment Strategic Rationale and Implications Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Case Study: Rating the Nine Forces Model in the Australian Airline Industry Barriers to Entry—Weighting 9 Bargaining Power of Buyers—Weighting 6 Bargaining Power of Suppliers—Weighting 6 Government—Weighting 6 Social—Weighting 5 Competitors—Weighting 9 Technology—Weighting 8 Substitutes—Weighting 3 International—Weighting 6 FAROUT Summary Related Tools and Techniques References Endnotes 7 Competitive Positioning Analysis Short Description Background Strategic Rationale and Implications Develop and Build on the Firm's Position Maintain and Hold the Firm's Strong Market Position Defend a Dominant Position Withdraw from a Market Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Identify Current Strategy and Market/Product/Project Parameters Conduct Analysis Review Results and Formulate Positioning Strategy Summary Case Study: Financial Services FAROUT Summary Related Tools and Techniques References Endnotes 8 Business Model Analysis Short Description Background Strategic Rationale and Implications The Business Model Classification of Business Models Strengths and Advantages Comprehensive Detailed Understanding Integration of Value Delivery Mechanism Innovation Weaknesses and Limitations Disruption from Outside the Industry Innovation Market Orientation Process for Applying the Technique Step 1: Articulate the Value Proposition Step 2: Specify the Target Segment Step 3: Determine Competitors Step 4: Evaluate the Value Chain and the Cost Model Step 5: Evaluate the Value Network Step 6: Determine the Revenue Model for the Firm Step 7: Determine the Critical Success Factors for the Industry Step 8: Complete an Analysis Grid Detailing Each Element of the Business Model Case Study: Dell Computer and the Printer Market FAROUT Summary Related Tools and Techniques References Endnotes 9 SERVO Analysis Short Description Background Strategy Environment Resources Values Organization Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Step 1: Evaluate the Current Performance of the Firm Step 2: Assess the Current Strategy and Discern Whether Change Is Necessary Step 3: Develop and Evaluate Strategic Options and Programs FAROUT Summary Related Tools and Techniques References Endnotes 10 Supply Chain Management (SCM) Analysis Short Description Background Strategic Rationale Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Rules and Tools Case Study: A Tale of Two Supply Chains: Best Buy vs. Sears/Kmart FAROUT Summary Related Tools and Techniques References Endnotes 11 Benchmarking Analysis Short Description Background Strategic Rationale and Implications Taxonomy of Benchmarking Strengths and Advantages Powerful Competitive Analysis Tool Objective Stretch Goal Setting and Performance Measurement Flexibility Removal of Blindspots Improves Cost Efficiencies and Quality Not Reinventing the Wheel but Redesigning It Media Recognition Requirement for Other Certifications Creates an Innovative Culture Open to New Ideas Weaknesses and Limitations Copycat Syndrome High Rate of Failure What Works Well in One Organization Might Not Work in Another Benchmarking Is Resource Intensive No Firm Does Everything the Best Low-Performing Firms Have a Disadvantage Some High-Performing Companies May Not Be Willing to Share Information Process for Applying the Technique Step 1: Identify the Processes That Need to Be Benchmarked Step 2: Identify Performance Measures Step 3: Evaluate Your Own Firm's Capabilities Step 4: Identify Firms to Be Benchmarked Step 5: Conduct Research of Selected Firms Step 6: Analyze the Collected Data and Develop an Action Plan Case Study: Delivery of Packages by Federal Express Step 1: Identify the Process That Needs to Be Benchmarked Step 2: Identify Performance Measures Step 3: Evaluate Own Firm's Capabilities Step 4: Identify Firms to Be Benchmarked Step 5: Conduct Research from Selected Firms Step 6: Analyze the Collected Data and Develop an Action Plan FAROUT Summary Related Tools and Techniques References Endnotes 12 McKinsey 7S Analysis Short Description Background Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Case Study: Privatization of Kenya Airways in the New Millennium FAROUT Summary Related Tools and Techniques References Endnotes 13 Shadowing Short Description Background Strategic Rationale and Implications Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Shadow Teams Team Composition Team Structure Performance Goals Shadowing Developing a Shadow Market Plan Case Study: Illuminating Strategy by Shadowing Sources of Information Inferences Confirmation Tentative Conclusions Monitoring Mini Case Studies Case 1—Deregulating Utility Case 2—Packaged-Food Multinational Case 3—Ready-to-Eat Foods Case 4—Pharmaceutical Firm FAROUT Summary Related Tools and Techniques References Endnotes 14 Product Line Analysis Short Description Background Strategic Rationale Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Step 1: Initial Product Audit Step 2: Assess the Product Relative to Its Position in the Product Life Cycle Case Study: eBay, Inc. in 2004 FAROUT Summary Related Tools and Techniques References Endnotes 15 Win/Loss Analysis Short Description Background Strategic Rationale and Implications Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Step 1: Determine the Target Segments and Identify Prospects Step 2: Understand Internal Cultural Issues Step 3: Develop the Questionnaire Step 4: Preparation for the Interviews Step 5: Conducting Interviews Step 6: Analysis and Interpretation Step 7: Dissemination Case Study: Microsoft Business Solutions Understanding the Environment Learning from Their Losses Leveraging the Data Keeping Current FAROUT Summary Related Tools and Techniques References Endnotes 16 Strategic Relationship Analysis Short Description Background Strategic Rationale Purposes Served by SRs Two Key Strategic Relationship Processes Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique 1. Studying Your Own Firm's Relationship Formation Readiness 2. Studying a Rival's Relationships FAROUT Summary Related Tools and Techniques References Endnotes 17 Corporate Reputation Analysis Short Description Background Strategic Rationale and Implications Strengths and Advantages Universal Bottom Line Competitive Differentiation Qualitative Weaknesses and Limitations Practical Uses Reliability of Results Return on Investment Process for Applying the Technique Reputation Quotient Focused CRA Media Ranking and Monitoring Reputation Management Case Study FAROUT Summary Related Tools and Techniques References Endnotes 18 Critical Success Factors Analysis Short Description Background Strategic Rationale and Implications Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Leidecker and Bruno's Identification Techniques Determining Critical Success Factor Importance Summary FAROUT Summary Related Tools and Techniques References Endnotes 19 Country Risk Analysis Short Description Background Strategic Rationale Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Economic Risk Transfer Risk Exchange Risk Location/Neighborhood Risk Sovereign Risk Political Risk Case Study: Zyboldt Metals (ZMC) Expansion into Eastern Europe Hungary Ukraine FAROUT Summary Related Tools and Techniques References Endnotes 20 Driving Forces Analysis Short Description Background Strategic Rationale Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Step 1: Identifying an Industry's DFs Step 2: Assessing the Impact of the DFs Summary Case Study: The Digital Music Industry FAROUT Summary Related Tools and Techniques References Endnotes 21 Event and Timeline Analysis Short Description Background Strategic Rationale and Implications Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Plot the Target Firm's History of Key Events on a Line Develop a Chronological Table of Events Develop an Events Matrix Event and Causal Factors Analysis Case Study Timelines in Competitive Analysis Development of the Timeline FAROUT Summary Related Tools and Techniques References Endnotes 22 Technology Forecasting Short Description Background Strategic Rationale and Implications Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique 1. Delphi Technique—Expert Opinion 2. Trend Extrapolation 3. Growth Curves 4. Historical Analogy 5. Scenarios 6. Morphological Analysis 7. Relevance Trees 8. Monitoring Using the Information Case Study: Bell Canada and the Delphi Process FAROUT Summary Related Tools and Techniques References Endnotes 23 War Gaming Short Description Background Strategic Rationale and Implications Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Step 1: Is a War Game the Way to Go? Step 2: Getting a Business War Game Off the Ground Step 3: Who Should Play? Step 4: Preparing for Your War Game Step 5: Playing the Game Step 6: After the Game Case Study FAROUT Summary Related Tools and Techniques References Endnotes 24 Indications and Warning Analysis Short Description Background Strategic Rationale and Implications Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Step 1: Establish the Set of Indicators Step 2: Establish Meaning Behind Indicators Step 3: Validate and Rank Indicators Against Threshold Levels to Determine When Warnings Need to Be Issued Step 4: Determine and Recommend Appropriate Firm Responses to the Warning Summary FAROUT Summary Related Tools and Techniques References Endnotes 25 Historiographical Analysis Short Description Background Strategic Rationale and Implications Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Step 1—Develop a General Proposition Step 2—Collect Primary Information Step 3—Collect Secondary Information Step 4—Select the Best Sources for the Third Draft Step 5—Reporting Case Study—Australian Menswear Retailer FAROUT Summary Related Tools and Techniques References Endnotes 26 Interpretation of Statistical Analysis Short Description Background Strategic Rationale and Implications Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Percentage Changes Percentiles and Quartiles Normal Distribution and Bell Curve Summarizing Data with One Value—Central Tendency Standard Deviation Comparing Data Regression Analysis Correlation P-Values FAROUT Summary Related Techniques References Endnotes 27 Competitor Cash Flow Analysis Short Description Background Strategic Rationale and Implications Strengths and Advantages Weaknesses and Limitations Processes for Applying This Technique Future Cash Flow Analysis Tip Sheet on Cash Flow Analysis Case Studies Historic Cash Flow Analysis: Burns Philp Future Cash Flow Analysis: Power Brewing FAROUT Summary Related Tools and Techniques References Endnotes 28 Analysis of Competing Hypotheses Short Description Background Strategic Rationale and Implications Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Step 1: Identify the Possible Hypotheses to Be Considered Step 2: List the Significant Evidence in Support of and Against Each Hypothesis Step 3: Prepare a Matrix with Hypotheses Across the Top and Evidence Down the Side Step 4: Refine the Matrix Step 5: Draw Tentative Conclusions About the Relative Likelihood of Each Hypothesis by Trying to Disprove It Step 6: Analyze How Sensitive Your Conclusion Is to a Few Critical Pieces of Evidence Step 7: Report Conclusions Step 8: Identify Milestones for Future Observation That May Indicate Events Are Taking a Different Course Than Expected Summary FAROUT Summary Related Tools and Techniques References Endnotes 29 Linchpin Analysis Short Description Background Strategic Rationale and Implications Strengths and Advantages Weaknesses and Limitations Process for Applying the Technique Linchpin Assumption Sensitivity Analysis Process for Using Linchpin Analysis in Assessing Risk FAROUT Summary Related Tools and Techniques References Endnotes Index A B C D E F G H I J–K L M N O P Q R S T U V W Z