Main Description |
Competitive analysis is an important part of the strategic planning process. In marketing and strategic
management, this analysis is an assessment of the strengths and weaknesses of current and potential competitors to
the organization.
Competitive analysis has several important roles in strategic planning:
- To help management understand their competitive advantages and disadvantages
relative to competitors
- To generate understanding of competitors’ past, present, and (most important)
future strategies
- To provide an informed basis to develop strategies to achieve competitive
advantage in the future
- To help forecast the potential returns from future investments (for example, how competitors
will respond to a new product or pricing strategy)
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