Flashcards in 4: Environmental & Competitor Analysis Deck (6)
Top down: central person takes control and prepares overall forecast
Bottom up: each part of firm prepares own sales forecast, and parts are aggregated to create forecast for firm as a whole
Statistical methods - useful in establishing firms for established products, more accurate, but assumes future looks like past.
observation - based on what people do but not possible for for new to world products
analogy investigates similar products. Adv: requires no history or prior examples, useful for new to world products. But proposed new products never like analogy is drawn, market and competitive conditions may differ.
judgement: cheap and fast but high risk.
market tests: closest to true market, but expensive, competitors can distort market conditions.
Awareness, interest, evaluate, trial, adoption.
Speeding up product process: relative advantage, compatible, complexity, trialability, visibility
Speeding up customer process: innovativeness, risk perception, need deficient
Customer based - if they don’t spend money with me, who will they spend it on?
Strategic groups - similar in way they approach business but not the same.
Market expansion, product expansion, backward/forward integration, export assets/skills.
Understanding competitors: size, growth and profitability, strengths and weaknesses, cost structure and exit barriers, objectives and assumptions, current and past strategies, organisation and culture.