Competitor response analysis is an investigation of the ability of a company to respond to its competitor’s strategies and its ability to adapt in accordance with change in external circumstances. It allows the company to study the efficiency of its reaction techniques and judge whether they are able to overcome threats and extract competitive advantage from them.

Sample Competitor Response Analysis

Competitor Response Analysis

Compiled by: Jonathan Caraway

Date of report submission: June 1, 2012.

Name of the company: Cookwell Kitchen Appliances Private Limited

Objective: To measure the competitive responsiveness of the company and analyze the efficacy of its responses.

Products concerned: Kitchen appliances.

Service area: Alabama.

Major Competitors

  1. Cook’s choice kitchen appliances
  2. Easycooking Appliances Company
  3. Cookalong Kitchenware Private Limited

Competitor Response Analysis Procedure

The competitive responsiveness of a company is measured through three dimensions namely speed, consistency and effectiveness. Thus, while analyzing competitor response, one needs to examine the speed with which the company responds to the changed situation, its consistency in this regard and the effectiveness of the response in arming the company with a competitive advantage.

Competitor Response Analysis

  • Current situation: The Company has been in good shape and enjoys a profitability of nearly 68%. The target customers are primarily home cooks and the appliances are designed in a way that it meets their needs. The universal selling point of the company is its guarantee of quality and durability.
  • Changing circumstances: With the changing methods of cooking and kitchen outlook, there has been a decline in the demand for traditional kitchenware that had been the specialization of the company. Cook’s Choice Kitchen Appliances and Easycooking Appliances Company had turned this to their advantage by launching a new range of microwave safe appliances and modular kitchenware while Cookalong Kitchenware Private Limited being fairly new in the game had the advantage of attracting the new generation customers with their stylish range of cookware.
  • Competitor response: Cookwell Kitchen Appliances Private Limited, though did take some time to catch up with the new trend, have by now adapted themselves with the new circumstances. Their recently launched new range of kitchenware not only attracts the customers with their style but is also packaged with a guarantee of quality and durability. Their reputation making it a far more irresistible choice for customers than its competitors.

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