Competitive analysis – n : the art of analyzing an
industry, sector or niche to determine the identity, size, market share, growth
rates and competitive dynamics of all the businesses competing in that space. The
key to valuable competitive analysis is to determine not only the numerical
facts, but more importantly, to understand the competitive dynamics of the
industry in question: What is the basis of competition (e.g., features, price,
shelf-space, channels, brand image)? How does profitability vary among the
various competitors and why? A comprehensive competitive analysis looks at each
company’s competitive positioning and what each company’s competitive
differentiation is within its sector. Many schools of thought exist regarding
competitive analysis, and several different courses in each major MBA program
focus on the topic.
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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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