Intra-industry Analysis
1. Understand and assess the competitors in the motorcycle
industry – Strategic groups
2. Further assess the competitors -
3. Segmentation - Market, Customer and Product
Strategic Group Analysis - Who are our current and potential
competitors?
A strategic group is a group of firms in an industry following
the same or similar strategy
Identifying strategic groups:
– Identify principal strategic variables which distinguish
firms
– Position each firm in relation to these variables
– Identify clusters.
Relevant dimensions
Market scope (product and geographical)
Choice of distribution channels
Level of product quality and/or price
Degree of vertical integration
Choice of technology
Governance
What to do with strategic groups
Use it to better understand the industry
– Range of strategies developed up to now
Use it to anticipate possible movements from one group to
another
– Depends on intergroup barriers and on group profitability
Use it to formulate a strategy
– Select a strategic group
– Reinforce barriers and improve profitability of own group
– Migrate
– Exploit a void
Broad
Product Range
NarrowLow HighPrice
Prem ium Specialist Harley-Davidson BM W
Piaggio VespaAprillia Ducati KTM
M oderate Price Broad Line Honda Kawasaki Suzuki Yam aha
Low Price M oderate LineHero Lifang Baja
Loujia Dayun Haojiang
Low Price SpecialistAlligator M odenasJingcheng Stallions
Low Price Broad LineZongshen Loncin JiansheJialing Qianjiang Sachs
Competitor Analysis - What are they doing? Where are they
strong/weak?
Porter’s 5 Forces provide a global and abstract appraisal of
competition
In order to survive in a competitive environment, a much more
precise knowledge is required
Competitor analysis is a vital task:
– Performed on a continuous basis by everyone in the firm
Its aim:
– To acquire extensive information about competitors
– To predict their behavior
Competitor Objective
Financial goals or market goals?
Market share oriented firms are more aggressive
– Ex: US vs. Japanese electronics firms
– Ex: Coca-Cola, P&G
Good present performance: strategy to continue
Unsatisfactory present performance: strategy likely to change
Competitor Assumption
Assumptions converge to create « industry recipes ».
Industry recipes can create « blind spots »
– Ex: Big 3 US auto manufacturers & small cars
Result: fastest growing segment of US auto market was ceded to
foreign producers
Segmentation Analysis - Which products, markets, customers…are the
most attractive?
Products, Customers, Markets…
Competition occurs at a localized level, within specific
product groups and at specific national or regional levels
– A finer look is necessary industry segmentation
Different segments:
– Different attractiveness and rules of the game
– Different key success factors
– Different competitors (to some extent)
Stages in Segmentation Analysis
Is the product a commodity?
– Commodities indicate weak segments
– “usually…”
Identify key segmentation variables
Analyze segment attractiveness (5F)
Identify the segment’s KSF’s
Identify the most attractive segments!!!!
