Business and Competitive Analysis

Authors Fleisher and Bensoussan are uniquely placed as experts in the field of business and competitive analysis. They have extensive corporate consulting, research, and teaching experience in both strategy and intelligence fields, and have both published and spoken internationally. Their collaboration also brings the book a healthy balance of both theory and application. Craig S. Fleisher is the Chief Learning Officer and Director of Professional Development, Aurora WDC, Madison, Wisconsin, USA. Craig was President of the Board of Directors of the international Strategic and Competitive Intelligence Professionals (SCIP), Chair of the Board of Trustees of the Competitive Intelligence Foundation (Washington, DC), founding Editor of the Journal of Competitive Intelligence and Management, and is a SCIP Meritorious Award winner and Fellow. Author or editor of a dozen books and scores of scholarly articles and chapters, Craig is among the top-cited Google Scholars in several fields, and contributes on several scholarly journals’ editorial boards. He was recognized as one of Canada’s top MBA professors by Canadian Business magazine, is named in the Canadian Who’s Who, and has taught university and executive courses in the strategy, analysis, and competitive intelligence areas for nearly three decades.    He was formerly a Professor, endowed research Chair, dean, MBA director and/or Institute Chair at the Universities of Calgary, New Brunswick, Windsor, and Wilfrid Laurier in Canada, as well as the College of Coastal Georgia. Craig holds a PhD in Business from the Katz Graduate School of Business, University of Pittsburgh, MBA in Human Resources Management and Marketing from the Owen Graduate School of Management at Vanderbilt University, and his BSBA (Finance, Insurance, and Real Estate) from the University of Florida.    A well-traveled speaker, he regularly advises leading corporations, associations, and public sector agencies on analysis processes and insight development. Craig holds a Docent appointment in the Dept. of Business Information Mgmt. at Tampere University of Technology (FI), graduate faculty status at the Universita della Svizzera italiana (CH), and visiting positions at universities in eight countries. Babette E. Bensoussan is an internationally esteemed leader in the field of Competitive Intelligence (CI) and Strategy. Her credentials are built upon a long-standing series of outstanding achievements, both business and academic. She is Australia’s only awarded CI professional and is one of the most published business authors. Throughout her career Babette has excelled as an entrepreneur, a consultant, a company director, a board member, an author, an academic and a business coach.    In 1992 Babette founded the MindShifts Group, a leading consulting company specializing in Competitive Intelligence and Strategy. As company director Babette has led the MindShifts Group through more than 350 projects with Australian and Fortune 500 companies. Her skills and expertise have been successfully applied to a huge range of industries, and her clients have included (but are not limited to) aerospace, information technology, pharmaceutical, manufacturing, and financial services companies. In 2006 Babette was the recipient of the SCIP Meritorious Award, the world’s most prestigious award in the field of Competitive Intelligence.    In addition to providing her talent and experience to her clients, Babette has a strong passion for sharing her uniquely honed expertise with others through mentoring and coaching. Author of six books and scores of articles and chapters, she has taught executive courses and held teaching positions at many of Australia’s leading universities and business schools. She is currently an Adjunct Professor in the School of Business at the University of Technology, Sydney. Their books include Strategic and Competitive Analysis and Analysis Without Paralysis.

Preface   xxix
SECTION 1:  ESSENTIALS OF PERFORMING BUSINESS AND COMPETITIVE ANALYSIS
Chapter 1  Business and Competitive Analysis: Definition, Context, and Benefits   3
   Understanding the Terminology   4
   Competitive   4
   Strategic   5
   Analysis   6
   Intelligence   8
   Analysis as a Component in the Intelligence Cycle   10
   Competitive Analysis and Decision Making   11
   The Competitive Context Facing Contemporary Enterprises   13
   Contemporary Context Facing the Analyst   14
   Shifting Organizational Priorities for Analysts and Analysis   16
   Summary   17
   References   18
Chapter 2  Performing the Analysis Process   22
   Understanding the “Customers” of Your Analysis Work   23
   Defining the Analysis Problem   25
   Identifying the Scope of the Analysis   26
   Intelligence Analysis at Differing Organizational Levels   31
   Strategic Intelligence Analysis   32
   Tactical Intelligence Analysis   32
   Operational Intelligence Analysis   33
   Micro Intelligence Analysis   33
   Evaluating the Inputs to Analysis   34
   Making Sense of the Analysis   37
   Facts   37
   Perceptions   38
   Beliefs   38
   Assumptions   38
   Projections   38
   Synthesis   39
   Infrastructure to Support the Analysis Process   39
   Intelligence Solutions   40
   Limitations of Intelligence Solutions   40
   Managing the Internal Network   41
   Developing and Managing the External Network   42
   Proactivity, Efficiency, and Perpetual Learning   43
   Summary   44
   Fleisher and Bensoussan’s 10 Commandments for Business and Competitive Analysis   45
   References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Chapter 3  Avoiding Analysis Pitfalls by Developing Analytical Fitness   48
   Trade-Offs Made by Analysts   48
   Analysis of Failure   49
   Failure Location   49
   Sources of Failure   50
   Four-Level Hierarchical Model of Analysis Failures   51
   Individual Analyst-Level Failures   53
   Analysis Task-Level Failures   55
   Internal Organizational-Level Failures   57
   External Environment-Level Failures   59
   The Movement to a New Generation of Analysis   62
   Overcoming the Barriers and Improving Performance through Developing Analytical Fitness   63
   Summary   65
   References   66
Chapter 4  Communicating Analysis Results   69
   The Art of Effective Communication   69
   Packaging the Results of Your Analysis   71
   Delivering the Message   71
   Face-to-Face Briefings   72
   Written Reports and Briefings   72
   Presentations in Meetings, Seminars, and Workshops   72
   E-Mail/Instant Messaging   73
   Web-Based Intelligence Solutions and Systems   73
   Exercises and Planning Sessions   74
   Common Products and Reports Used by Analysts   74
   News Bulletins and Newsletters   74
   Assessments   76
   Competitor Profiles   76
   Battlecards   76
   Strategic Impact Worksheets   77
   Intelligence Briefings   77
   Situation Analysis   78
   Special Intelligence Summaries   78
   Creating the Report   78
   Communication Difficulties Faced by Analysts   79
   Effective Listening and Answering the Questions of Decision Makers   86
   Conduct Communication Follow-Up and Gather Feedback   87
   Pragmatic Considerations   87
   Summary   89
   References   90
Chapter 5  Applying the FAROUT Method   92
   Applying the Techniques   94
   An Evaluation Scheme for Assessing the Adequacy of Tools and Techniques: FAROUT   95
   Using the FAROUT Rating System   98
   References   101

SECTION II:  NEW AND CLASSIC METHODS OF BUSINESS AND COMPETITIVE ANALYSIS
Chapter 6  A Better SWOT Analysis   105
   Background   105
   Strategic Rationale and Implications   107
   Key Intelligence Topics and Questions   110
   Strengths and Advantages   111
   Weaknesses and Limitations   112
   Process for Applying the SWOT Technique   113
   Worksheet   119
   FAROUT Summary   120
   Related Tools and Techniques   122
   References   122
Chapter 7  Analysis of Competing Hypotheses   123
   Background   123
   Strategic Rationale and Implications   124
   Key Intelligence Topics and Questions   125
   Strengths and Advantages   126
   Weaknesses and Limitations   127
   Process for Applying the Technique   128
   Step 1: Identify the Possible Hypotheses to Be Considered   128
   Step 2: List the Significant Evidence in Support of and Against Each Hypothesis   128
   Step 3: Prepare a Matrix with Hypotheses Across the Top and Evidence Down the Side   129
   Step 4: Refine the Matrix   130
   Step 5: Draw Tentative Conclusions About the Relative Likelihood of Each Hypothesis by Trying to Disprove It   131
   Step 6: Analyze How Sensitive Your Conclusion Is to a Few Critical Pieces of Evidence   132
   Step 7: Report Conclusions   132
   Step 8: Identify Milestones for Future Observation That May Indicate Events Are Taking a Different Course Than Expected   133
   Summary   133
   Worksheet   133
   FAROUT Summary   134
   Related Tools and Techniques   136
   References   136
Chapter 8  Benchmarking Analysis   137
   Background   137
   Strategic Rationale and Implications   138
   Taxonomy of Benchmarking   139
   Key Intelligence Topics and Questions   143
   Strengths and Advantages   144
   Weaknesses and Limitations   145
   Process for Applying the Technique   147
   Step 1: Identify the Processes That Need to Be Benchmarked   147
   Step 2: Identify Performance Measures   148
   Step 3: Evaluate Your Own Firm’s Capabilities   150
   Step 4: Identify Firms to Be Benchmarked   150
   Step 5: Conduct Research of Selected Firms   151
   Step 6: Analyze the Collected Data and Develop an Action Plan   152
   Worksheet   155
   FAROUT Summary   156
   Related Tools and Techniques   157
   References   157
Chapter 9  Business Model Analysis   159
   Background   160
   Strategic Rationale and Implications   161
   The Business Model   162
   Classification of Business Models   164
   Key Intelligence Topics and Questions   167
   Strengths and Advantages   167
   Weaknesses and Limitations   168
   Process for Applying the Technique   168
   Step 1: Articulate the Value Proposition   168
   Step 2: Specify the Target Segment   170
   Step 3: Determine Competitors   170
   Step 4: Evaluate the Value Chain and the Cost Model   171
   Step 5: Evaluate the Value Network   173
   Step 6: Determine the Revenue Model for the Firm   174
   Step 7: Determine the Critical Success Factors for the Industry   175
   Step 8: Complete an Analysis Grid Detailing Each Element of the Business Model   175
   Worksheet   179
   FAROUT Summary   179
   Related Tools and Techniques   181
   References   181
Chapter 10  Competitive Positioning Analysis   183
   Background   183
   Strategic Rationale and Implications   184
   Develop and Build on the Firm’s Position   185
   Maintain and Hold the Firm’s Strong Market Position   186
   Defend a Dominant Position   186
   Withdraw from a Market   186
   Key Intelligence Topics and Questions   187
   Strengths and Advantages   187
   Weaknesses and Limitations   188
   Process for Applying the Technique   189
   Step 1: Identify Current Strategy and Market/Product/Project Parameters   190
   Step 2: Conduct Analysis   192
   Step 3: Review Results and Formulate Positioning Strategy   193
   Summary   195
   Worksheet   197
   FAROUT Summary   198
   Related Tools and Techniques   200
   References   200
Chapter 11  Competitor Cash Flow Analysis   202
   Background   202
   Strategic Rationale and Implications   204
   Key Intelligence Topics and Questions   206
   Strengths and Advantages   207
   Weaknesses and Limitations   208
   Processes for Applying the Technique   209
   Future Cash Flow Analysis   210
   Tip Sheet on Cash Flow Analysis   211
   Worksheet   218
   FAROUT Summary   219
   Related Tools and Techniques   220
   References   221
Chapter 12  Critical Success Factors Analysis   222
   Background   222
   Strategic Rationale and Implications   224
   Key Intelligence Topics and Questions   229
   Strengths and Advantages   229
   Weaknesses and Limitations   230
   Process for Applying the Technique   231
   Leidecker and Bruno’s Identification Techniques   232
   Determining Critical Success Factor Importance   236
   Worksheet   238
   FAROUT Summary   239
   Related Tools and Techniques   240
   References   241
Chapter 13  Driving Forces Analysis   243
   Background   243
   Strategic Rationale and Implications   244
   Key Intelligence Topics and Questions   244
   Strengths and Advantages   245
   Weaknesses and Limitations   246
   Process for Applying the Technique   246
   Step 1: Identifying an Industry’s DFs   247
   Step 2: Assessing the Impact of the DFs   250
   Worksheet   258
   FAROUT Summary   259
   Related Tools and Techniques   260
   References   261
Chapter 14  Event and Timeline Analysis   263
   Background   263
   Strategic Rationale and Implications   264
   Key Intelligence Topics and Questions   265
   Strengths and Advantages   265
   Weaknesses and Limitations   266
   Process for Applying the Technique   267
   Plot the Target Firm’s History of Key Events on a Line   267
   Develop a Chronological Table of Events   269
   Develop an Events Matrix   270
   Event and Causal Factors Analysis   270
   Worksheet   278
   FAROUT Summary   278
   Related Tools and Techniques   280
   References   280
Chapter 15  Historiographical Analysis   282
   Background   282
   Strategic Rationale and Implications   283
   Key Intelligence Topics and Questions   285
   Strengths and Advantages   286
   Weaknesses and Limitations   287
   Process for Applying the Technique   288
   Step 1: Develop a General Proposition About the Analytical Target   288
   Step 2: Collect Primary Information   289
   Step 3: Collect and Relate Secondary Information   289
   Step 4: Cross-Reference and Select the Best Sources for the Third Draft   290
   Step 5: Analysis, Validation, and Reporting   290
   Worksheet   292
   FAROUT Summary   293
   Related Tools and Techniques   294
   References   295
Chapter 16  Indications and Warning Analysis   296
   Background   296
   Strategic Rationale and Implications   298
   Key Intelligence Topics and Questions   299
   Strengths and Advantages   299
   Weaknesses and Limitations   300
   Process for Applying the Technique   302
   Step 1: Establish a Set of Indicators   302
   Step 2: Establish Meaning Behind Indicators   304
   Step 3: Validate and Rank Indicators Against Threshold Levels to Determine When Warnings Need to Be Issued   306
   Step 4: Determine and Recommend Appropriate Firm Responses to the Warning   307
   Worksheet   308
   FAROUT Summary   309
   Related Tools and Techniques   311
   References   311
Chapter 17  Industry Fusion Analysis   313
   Background   313
   General Environment   314
   Operating Environment/Industry Analysis   317
   Internal Environment   318
   Strategic Rationale and Implications   318
   Key Intelligence Topics and Questions   320
   Strengths and Advantages   321
   Weaknesses and Limitations   322
   Process for Applying the Technique   323
   Worksheet   330
   FAROUT Summary   331
   Related Tools and Techniques   332
   References   332
Chapter 18  Interpretation of Statistical Analysis   335
   Background   335
   Strategic Rationale and Implications   336
   Key Intelligence Topics and Questions   337
   Strengths and Advantages   338
   Weaknesses and Limitations   338
   Process for Applying the Technique   339
   Percentage Changes   339
   Percentiles and Quartiles   341
   Normal Distribution and Bell Curve   341
   Summarizing Data with One Value–Central Tendency   342
   Standard Deviation   344
   Comparing Data   345
   Regression Analysis   346
   Correlation   350
   P-Values   351
   Worksheet   351
   FAROUT Summary   352
   Related Tools and Techniques   353
   References   354
Chapter 19  Linchpin Analysis   355
   Background   355
   Strategic Rationale and Implications   356
   Key Intelligence Topics and Questions   359
   Strengths and Advantages   360
   Weaknesses and Limitations   360
   Process for Applying the Technique   361
   Linchpin Assumption Sensitivity Analysis   362
   Process for Using Linchpin Analysis in Assessing Risk   363
   Worksheet   364
   FAROUT Summary   365
   Related Tools and Techniques   366
   References   367
Chapter 20  McKinsey 7S Analysis   368
   Background   368
   Strategic Rationale and Implications   371
   Key Intelligence Topics and Questions   372
   Strengths and Advantages   373
   Weaknesses and Limitations   374
   Process for Applying the Technique   375
   Worksheet   381
   FAROUT Summary   381
   Related Tools and Techniques   383
   References   383
Chapter 21  Product Line Analysis   385
   Background   385
   Strategic Rationale and Implications   386
   Key Intelligence Topics and Questions   386
   Strengths and Advantages   387
   Weaknesses and Limitations   388
   Process for Applying the Technique   389
   Step 1: Initial Product Audit   389
   Step 2: Assess the Product Relative to Its Position in the Product Life Cycle   390
   Worksheet   401
   FAROUT Summary   403
   Related Tools and Techniques   404
   References   405
Chapter 22  Scenario Analysis   407
   Background   407
   Strategic Rationale and Implications   408
   Methods for Generating Scenarios   408
   Quantitative Method: Computer-Generated Econometric Model   409
   Qualitative Methods   409
   Key Intelligence Topics and Questions   411
   Strengths and Advantages   412
   Weaknesses and Limitations   413
   Processes for Applying the Technique   413
   Worksheet   421
   FAROUT Summary   422
   Related Tools and Techniques   424
   References   424
Chapter 23  SERVO Analysis   425
   Background   425
   Strategy   426
   Environment   427
   Resources   428
   Values   430
   Organization   431
   Strategic Rationale and Implications   432
   Key Intelligence Topics and Questions   433
   Strengths and Advantages   434
   Weaknesses and Limitations   434
   Process for Applying the Technique   435
   Step 1: Evaluate the Current Performance of the Firm   435
   Step 2: Assess the Current Strategy and Discern Whether Change Is Necessary   436
   Step 3: Develop and Evaluate Strategic Options and Programs   439
   Worksheet   442
   FAROUT Summary   443
   Related Tools and Techniques   444
   References   445
Chapter 24  Shadowing   447
   Background   447
   Strategic Rationale and Implications   450
   Key Intelligence Topics and Questions   451
   Strengths and Advantages   451
   Weaknesses and Limitations   452
   Process for Applying the Technique   454
   Team Composition   454
   Team Structure   455
   Performance Goals   455
   Shadowing   456
   Developing a Shadow Market Plan   458
   Mini Case Studies   461
   Case 1: Deregulating Utility   461
   Case 2: Packaged-Food Multinational   461
   Case 3: Ready-to-Eat Foods   461
   Case 4: Pharmaceutical Firm   462
   Worksheet   462
   FAROUT Summary   463
   Related Tools and Techniques   464
   References   465
Chapter 25  Strategic Relationship Analysis   466
   Background   466
   Strategic Rationale and Implications   469
   Purposes Served by SRs   469
   Two Key Strategic Relationship Processes   472
   Key Intelligence Topics and Questions   473
   Strengths and Advantages   474
   Weaknesses and Limitations   475
   Process for Applying the Technique   475
   Studying Your Own Firm’s Relationship Formation Readiness   475
   Studying a Rival’s Relationships   478
   Worksheet   485
   FAROUT Summary   486
   Related Tools and Techniques   487
   References   488
Chapter 26  Supply Chain Management (SCM) Analysis   492
   Background   493
   Strategic Rationale and Implications   494
   Key Intelligence Topics and Questions   496
   Strengths and Advantages   497
   Weaknesses and Limitations   498
   Process for Applying the Technique   499
   Rules and Tools   501
   Worksheet   507
   FAROUT Summary   508
   Related Tools and Techniques   510
   References   510
Chapter 27  Technology Forecasting   513
   Background   513
   Strategic Rationale and Implications   515
   Key Intelligence Topics and Questions   518
   Strengths and Advantages   518
   Weaknesses and Limitations   519
   Process for Applying the Technique   521
   1. Expert Opinion   522
   2. Trend Extrapolation   523
   3. Growth Curves   525
   4. Historical Analogy   526
   5. Scenarios   526
   6. Modelling, Simulations, and Gaming   526
   7. Morphological Analysis   527
   8. Relevance Trees   527
   9. Monitoring   528
   10. Creativity Stimulators   529
   Using the Information   531
   Worksheet   535
   FAROUT Summary   535
   Related Tools and Techniques   537
   References   537
Chapter 28  War Gaming   539
   Background   539
   Strategic Rationale and Implications   540
   Key Intelligence Topics and Questions   541
   Strengths and Advantages   542
   Weaknesses and Limitations   543
   Process for Applying the Technique   544
   Step 1: Is a War Game the Way to Go?   545
   Step 2: Getting a Business War Game Off the Ground   546
   Step 3: Who Should Play?   548
   Step 4: Preparing for Your War Game   548
   Step 5: Playing the Game   549
   Step 6: After the Game   550
   Worksheet   552
   FAROUT Summary   553
   Related Tools and Techniques   554
   References   555
Chapter 29  Win/Loss Analysis   556
   Background   556
   Strategic Rationale and Implications   557
   Key Intelligence Topics and Questions   559
   Strengths and Advantages   560
   Weaknesses and Limitations   561
   Process for Applying the Technique   562
   Step 1: Determine the Target Segments and Identify Prospects   562
   Step 2: Understand Internal Cultural Issues   563
   Step 3: Develop the Questionnaire   563
   Step 4: Prepare for the Interviews   564
   Step 5: Conduct Interviews   564
   Step 6: Analyze and Interpret   565
   Step 7: Disseminate   565
   Worksheet   568
   FAROUT Summary   570
   Related Tools and Techniques   571
   References   571
Index   573

 

The definitive practical guide to business and competitive analysis, now fully updated: all the tools, step-by-step instructions for using them, and expert guidance on choosing the right tool for every assignment!