Paper Sample on Competing in the Marketplace: Gaining Insight to Outsmart Competitors

It is imperative to note that whatever business that an organization engages in, it cannot be denied that there are undoubtedly other businesses that are offering the same services or products to the market (Fleisher & Bensoussan, 2015). Therefore, in such a situation, a company needs insight and reliable information to outsmart its competitors because it is not enough to know only what they offer. Indeed, any company should not downplay the existence of likely competitors in the industry. It is why with the increased technological advancement in the field of business, organizations have the opportunity to check the activities of its competitors, thereby staying ahead of them through conducting thorough competitive analysis (Fleisher & Bensoussan, 2015). The paper will discuss SWOT analysis as a competitive analysis tool. Also, a discussion on why it is the most appropriate tool will be made by looking at the circumstances in which it is more effective than other tools. Lastly, the paper will recommend various improvements that should be made to this tool to make it more effective.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

As had already been mentioned, while assessing a company's performance alongside developing a strategic plan, the management must consider the level of competition (Fleisher & Bensoussan, 2015). Understandably, developing a competitor analysis helps to put things into perspective, thereby allowing the management to identify areas in the market that need more attention of the company and find ways that the company can differentiate itself from the competitors. It is, therefore, essential to note that this can only be achieved through one of the most effective competitor analysis tools in SWOT analysis by Harvard Business Review (SammutBonnici & Galea, 2015).

SWOT competitive analysis model is undeniably one of the most common tools that various companies compare their performance to the competition (SammutBonnici & Galea, 2015). SWOT model is an essential tool whether the company is strategizing for different digital marketing tactics, when it is looking for a product or when it wants to position itself in the market. The main reason for selecting this tool is that it gives a detailed description of the four contents. These include strengths, weaknesses, opportunities, and threats of the company, thereby giving the management a clear roadmap on strengthening areas (SammutBonnici & Galea, 2015).

Essentially, the SWOT analysis tool helps in analyzing the company’s strengths, weaknesses, opportunities, and threats. The fact that this tool is clearly outlined makes it more effective than other available options (SammutBonnici & Galea, 2015). As stated above, this tool enables a company to quickly identify its areas of weaknesses hence allowing management to plan appropriately. Also, by knowing the possible threats, which are both external factors alongside weaknesses, the management can develop prior strategies to avoid these problems, thereby avoiding likely competition that would otherwise arise as a result of loopholes created by these two issues. In summary, SWOT analysis allows a company to build on its strengths and maximize its opportunities while ensuring that the risks are minimized (SammutBonnici & Galea, 2015). As a result of these strategies, the company will be able to compete in the market effectively.

The SWOT analysis model enables the company management to quickly assess the direction of the company in terms of performance. It acts as the symbol of the company’s strategic plan (SammutBonnici & Galea, 2015). The tool enables the management and other stakeholders to outline the goals of the company.

Another crucial situation in which SWOT analysis tool is effective than others is when the company management does not have adequate time to address any complicated situation that may arise in the business (SammutBonnici & Galea, 2015). Because of its simplicity, quick steps can be taken to improve the business performance without necessarily seeking advice from an expert adviser. Also, as mentioned above, another advantage of this tool is that it only concentrates on the important factors that are affecting the business because it is simple, clear, and easy to understand thereby enables the management and other stakeholders to understand the company better (SammutBonnici & Galea, 2015).

In a bid to improve the effectiveness of this tool, the company should be able to determine the various points of comparison using the model (SammutBonnici & Galea, 2015). The reference factors can be, for example, plans of the company, previous performances, and even current company benchmarks. Another improvement that should be made is by evaluating the elements that were missing in the earlier analyses. To improve on this, the company should try to know if there were gaps in the past that were responsible for the differences noted (SammutBonnici & Galea, 2015).

Conclusion

In conclusion, the paper has comprehensively discussed SWOT analysis as the business tool that is most appropriate for conducting competitive analysis. The fact that it is clear and easy to understand was one reason for choosing this tool. Also, the circumstances for which this tool might be selected as more effective than other available options have been mention. Lastly, the paper has outlined the various modifications that should be made to this model to make it more effective.

References

Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: effective application of new and classic methods. FT press. https://d1wqtxts1xzle7.cloudfront.net/30356361/bca_overview.pdf?1355925220

Bonnici, T., & Galea, D. (2015). SWOT analysis. Wiley Encyclopedia of Management, 1-8. https://www.um.edu.mt/library/oar/bitstream/123456789/21794/1/sammut-bonnici%20SWOT.pdf