Forget your competitors’ big teeth. Turn their threat into opportunity with Competitor Value Chain Analysis

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Competitor Value Chain Analysis

What is Competitor Value Chain Analysis?

Competitor Value Chain Analysis is the process of analysing your operational chain and starting with your raw materials/customer attraction through to finished goods/services and your customer service processes.

Isolate the significant activities in your value chain

For example, you can include inbound and outbound logistics, as well as, sales and operational activities. It is a great way to assess your efficiency and effectiveness and allows you to find ways to reduce costs, as well as, improve product quality, customer attraction and service.

Then, looking at the primary chain detailed above, you can develop the Value Chain to create a potent tool to analyse your competitors. As follows:

Customer needs (Inbound logistics)

How do your competitors understand what their customers need? Also, are they looking at their customers’ future needs? Do they meet their potential customers? And, where and how do they buy their raw materials? Finally how often do they receive deliveries, etc.?

Product/Service Development (Operations)

  • How does your competitor build their potential products/services?
  • And how do they create prototypes?
  • Also, how do they test their product/service before they try and sell it? Just how good is their service/product?

Delivery (Outbound logistics)

How does your competitor deliver and install their product? Also, how do they provide their service? Are their customers happy?

Sales and Marketing

How do they sell their products/services? And what do they say and how do they market it to customers?

Service

How do they provide customer service? Are they delivering excellent service? Clearly, you will need to understand your competitors, and this may be a great way to get into Competitive Intelligence. So,we expect that you will learn so much from Competitor Value Chain Analysis. And find out things you didn’t know, copy (and enhance) their strengths, as well as take advantage of their weaknesses. And can use it to create competitive advantage.