Cuprins
- Introduction 2
- 1. Problem formulation 3
- 1.1 Problem Statement 3
- 1.2 Sub-questions 3
- 2. Project outline 5
- 3. Methodology and paradigm approach 6
- 3.1 The four levels of understanding 6
- 3.1.1 Ontology 6
- 3.1.2 Epistemology 6
- 3.1.3 Human Nature 7
- 3.1.4 Methodology 7
- 3.2 Arbnor and Bjerke’s approach 7
- 3.2.1 The analytical approach 8
- 3.2.2 The System approach 9
- 3.2.3 The actors approach 9
- 3.3 Data collection 9
- 3.4 Methodology of research 10
- 4. Limitations 14
- 5. Literature review 15
- 5.1 Bergen and Peteraf’s framework 15
- 5.2 Chen’s Inter-firm rivalry concept 17
- 5.3 Competitive advantage theories 19
- 6. Analysis 24
- 6.1 Competitor categorization 24
- 6.2 Identification of the attack and response likelihood 30
- 6.3 Competitive advantage determination 35
- Conclusion 43
- References: 43
Extras din proiect
Introduction
The purpose of this project is to find out how can competitors’ analysis influence the business model (BM) CANVAS of AdVision advertising start-up firm.
The researchers believe that in doing so they can not only gain a better understanding of the competitive environment in Bulgarian market, but they also can come up with appropriate solutions for the barriers that may arise from competitor analysis and may affect BM Canvas blocks such as: value proposition, costs, partners, resources, customer relationship, etc.
Moreover, John A. Czepiel and Roger A. Kerin mentioned in their article - Competitor analysis – that by knowing who are the competitors of a firm, what strategy are they using, what are their weaknesses and strengths, will allow to a marketing strategist to “position the firm's offerings such that they minimize direct competition either by choosing vulnerable competitors or by pitting strength against weakness”.
Also, as Michael R. Hunter specifies, by knowing the competition in an industry, can offer some other advantages such as: it can be learned from their mistakes, it can be modelled what works for them and ultimately the competitors can reveal opportunities in market place by specifying the segments of the marketplace and customers they are targeting. (http://michaelrhunter.com/, 2014)
The immeasurable importance of knowing the competitors makes the topic of competitors’ analysis and their influence upon business model CANVAS and start-ups, in general, very interesting from both practical and academic point of view.
Having the above information in mind, the authors of the present project considered that by researching and applying the theoretical knowledge, obtained during their studies, to AdVision start-up, one can ultimately gain a deeper and better understanding of the whole competitors’ analysis concept and be able to make valid suggestions for solving the problems arisen as an outcome of this analysis.
1. Problem formulation
Competitor analysis influence upon the business model CANVAS of AdVision start-up
1.1 Problem Statement
As it was aforementioned the main focus of this written report lays upon the effects of the competitors’ analysis outcome upon BM CANVAS of AdVision.
Considering that 46 % of the start-ups fail due to lack/ poor analysis of the competitors, this topic is wide of opportunities and different possibilities to be approached. (http://www.statisticbrain.com/)
This fact makes the topic even more alluring and relevant. In order to be more specific and practical, the authors decided to take into analysis a start-up company from the advertising industry that can help in achieving the purpose of this project.
The proposed problem can lead to a main research question as follows:
How can competitor analysis affect the business model CANVAS of AdVision and what can this start-up do in order to ensure itself an effective entry in the advertising industry?
1.2 Sub-questions
1. Who are the competitors of AdVision and what are their capabilities and strategies?
2. How intense is the rivalry between AdVision and its competitors; what is the likelihood of attack or response towards AdVision’s entry on the market?
3. What parts of AdVision’s business model might be affected by competitors’ analysis outcome and what can this start-up do in order to have a successful entry on the market?
The above questions aim to help the authors to get a deeper understanding of the competitors’ analysis concept as well as their influence upon costs structure, revenue, customers’ relationships, resources, partners or value proposition itself for a start-up company.
Consequently, the first question will help the authors to identify who are the competitors of AdVision based on their market profile (or market commonality) and their resource endowments and how good are they compared to the focal firm.
By comparing AdVison with its competitors along these two dimensions, will help to “illuminate the pre-battle competitive tension between these firms and to predict how the focal firm may interact with each of its competitors.” This means that by making the competitors analysis, the researchers of this project will be capable to understand and predict the intensity of rivalry between AdVision and its competitors “in their quest for a competitive position in the industry”; fact that fulfils the role of second question. (Chen, 1996, pg.100-101)
Finally, as a logical flow of this research the third question will aid the authors to identify the blocks from BM CANVAS that need to be changed or improved in order to create a competitive advantage for AdVision.
Bibliografie
Articles:
1. Amit, R. and Shoemaker, P. - Strategic assets and organizational rent, Strategic Management Journal, vol. 14, no.1, 1993, p. 35
2. Barney, J. – Firm resources and sustained competitive advantage, Journal of Management, vol. 17, no.1,1991, p. 101
3. Bergen M and Peteraf MA. – Competitor Identification and Competitor Analysis: A Broad-Based Managerial Approach, Managerial and Decision Economics, 2002 pp. 160 – 161
4. Chen Ming-Jer – Competitor analysis and inter-firm rivalry: toward a theoretical perspective, The Academy of Management Review; Jan 1996, p. 100-114
5. Czepiel A. John and Roger A. Kerin – Competitor analysis, Chapter in Venkatesh Shankar and Gregory S. Carpenter, eds. Handbook of Marketing Strategy. Edward Elgar Publishing, Northampton, MA, 2011
6. Grant, R – Prospering in dynamically-competitive environments: organizational capability as knowledge integration, Organization Science, vol. 7, no. 4, p. 377
7. Hoskisson R, Hitt M, Ireland D. – Competing advantage, Second edition, 2008, p.163
8. Kuada John - Paradigms in International Business Research - Classifications and Applications, Working Paper Series, No. 53, 2009, p. 5
9. Teece J.D.; Gary Pisano, Amy Shuen – Dynamic capabilities and Strategic Management, Strategic Management Journal, Vol. 18, No. 7, 1997, p. 525-526
10. Tiwana, A. - The Knowledge Management Toolkit – Practical Techniques for Building a Knowledge Management System, USA: Prentice Hall, 2000, pp. 129-130.
11. Wang Hui-Ling - Theories for competitive advantage, In H. Hasan (Eds.), Being Practical with Theory: A Window into Business Research, Wollongong, Australia, 2014, p. 33-43
Books:
1. Arbnor & Bjerke, - Methodology for creating business knowledge. Thousand Oaks: Sage Publications, Second Edition, 1997
2. Bryman, A. and Bell, E. - Business Research Methods, Oxford University Press 3rd Edition, 2011
3. Kuada John - Research Methodology - A Project Guide for University Students, Samfundslitteratur. 1 Edition, 2012
4. Porter M. - Competitive Advantage: Creating and Sustaining Superior Performance, First Free Press Edition, 1985, p. XXI - preface
Websites:
1. Business model CANVAS image – Available at: http://www. business modelgeneration.com/canvas/bmc
2. Commerce Registry Agency – Available at: http://www.brra.bg/Default.ra
3. Digital Outdoor Advertising Association 2014 - http://www.s-workgroup. eu/advr/members.html
4. Factor D company – http://factor-adv.com/
5. GTS Led company – http://www.gts-led.eu/
6. Hunter Michael, 2014 – Available at: http://michaelrhunter.com/why-knowing-your-competition-is-important/
7. LedArt company - http://www.ledart.eu/newsite/
8. LED Reklama company - http://led-reklama.com/
9. Light Media company – http://www.lightmedia.bg/indexen.php
10. National Statistical Institute of Bulgaria, 2014 – Available at: http://www.nsi.bg/en/ content/6704/population-districts-municipalities-place-residence-and-sex
11. NuWorx company – http://nuworx-bg.com/
12. Rek Art company – http://www.billboardsliven.com/
13. Sun Light company - http://sunlightbg.com/
14. Statistic Brain website, 2014 – Available at: http://www.statisticbrain.com/startup-failure-by-industry/
15. Tracy Brian, 2014 – Available at: http://www.briantracy.com/blog/sales-success/competitive-advantage-differentiation-strategies-unique-selling-proposition/
16. http://smallbusiness.chron.com/need-start-own-ad-agency-20657.html
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