Competitive Strength

A component of evaluating a company’s situation is developing a comprehensive assessment of the company’s overall competitive strength. Making this determination requires answers to two questions: How does the company rank relative to competitors on each of the important factors that determine market success? All things considered, does the company have a net competitive advantage or disadvantage versus major competitors? Competitive advantage is the leverage that a business has over its competitors. Competitive strength assessments provide useful conclusions about a company’s competitive situation. The ratings show how a company compares against rivals, factor by factor or capability by capability, thus revealing where it is strongest and weakest. Moreover, the overall competitive strength scores indicate whether the company is at a net competitive advantage or disadvantage against each rival. A company’s competitive strength scores pinpoint its strengths and weaknesses against rivals and point to offensive and defensive strategies capable of producing first-rate results.