Sample Analysis

I. Competition analysis

In order to know how best to compete, as well as the analysis given above, one needs to know the way competitors measure themselves, their strategy to date, their major strengths and weaknesses and likely future strategy. In the first of these - knowing the way competitors see themselves - much can be learned from public accounts, interviews and the trade press. Other ways are to have competitive personnel, take part in trade fairs, purchase the competitor's product and take it apart, or indulge in "espionage". In identifying the competitor's strategy to date, it is not enough to believe what they say but to reconstruct their strategy. Evaluating resources is difficult. It is essential to look at their production, marketing, financial and management resources. On the basis of these first three, it is possible to guess the future.

Not all competitors are necessarily bad. Good competitors can absorb demand fluctuations, expand the market, increase motivation, and act responsively to the industry. There is, for example, room for all developing countries to take a share in most world markets in commodities, without one country wishing to be too aggressive.

Competitive strategy

Value chain analysis espouses three roles for marketing in a global competitive strategy. The first relates to the configuration of marketing. It may be advantageous to concentrate some marketing activities in one or a few countries. A second role relates to the coordination of activities across countries to gain leverage say, of know how. A third critical role of marketing is its role in tapping opportunities for upstream advantage in the value chain. More will be said about value chain analysis in later chapters.

The life cycle

As indicated in chapter one, successful global strategists have also to be cognizant of the international life cycle. Successful strategies start with a firm base in one region or country, and then expand as opportunities arise. These...