Competitors are other organizations that provide goods or services to the same set of customers or that vie for the same resources needed by the organization. Most organizations have at least one competitor (usually more than one) and must consider all potential competitors. For instance, Xerox faces a number of strong competitors in the market for photocopiers. In recent years, time-based competition has become a key competitive force. Time-based competition involves delivering what the customer wants on the customer's timetable—and faster than any competitor can deliver. Among the organizations using time-based competition are Federal Express, Domino's Pizza, Sony, Benetton, and Sharp.
Clearly, managers must monitor what their competitors are doing in the way of pricing, products, customer service, supply sources, and other areas. But because competitors are crossing national borders in greater numbers to vie for customers and resources around the world, competitive forces have become extremely tricky to monitor and predict. Methods managers can use to gather information about competitors include going to industry meetings, reading trade publications, checking annual reports, and scanning advertising. By cataloging and analyzing competitive moves, managers can develop plans for competing more effectively.
Clearly, managers must monitor what their competitors are doing in the way of pricing, products, customer service, supply sources, and other areas. But because competitors are crossing national borders in greater numbers to vie for customers and resources around the world, competitive forces have become extremely tricky to monitor and predict. Methods managers can use to gather information about competitors include going to industry meetings, reading trade publications, checking annual reports, and scanning advertising. By cataloging and analyzing competitive moves, managers can develop plans for competing more effectively.