Competitive Strategy

A company whose revenue increases more slowly than GDP is five times more likely to succumb, usually through acquisition than a company that expands more rapidly than GDP. To outperform competitors and succeed in the long term, companies must achieve top-line growth by competing in the right places, and at the right times.

Any successful approach to achieving top-line growth must (1) take into account what your competitors are, and are not, doing, and (2) balance those insights with a detailed understanding of where promising market opportunities are to be found. Ignoring either of these activities puts top-line growth at risk.

Companies must, therefore, invest heavily not only to keep pace with competitors but also to render them irrelevant whenever possible, while simultaneously anticipating and preparing for the next threat or opportunity.

Competitive Strategy Issues and Challenges

Most companies appreciate the need for incorporating competitive information into decision making, but few are adept at treating it as an integral component of a long-term growth strategy:

Two-thirds of strategic planners believe that companies should consider expected competitor reactions when making decisions, and yet fewer than one in 10 recall having done so, and fewer than one in five expect to do so in the future.

71 percent of U.S.-based companies claim to use competitive intelligence to guide their decision making, but most admit using it for operational or tactical reasons rather than strategic ones (e.g., sales purposes, new product launch planning, strategic alliance formation).

Value Proposition:

Successful competitive strategy is dependent on differentiation, cost-effectiveness, and sustainability. We help our clients focus time and resources where areas of opportunity overlap with their own best capabilities. With our guidance, our clients follow a specific process for assessing their own strengths, assessing the competitive situation, and formulating appropriate responses. Importantly, our consultants also understand that a competitive strategy is ineffective if it fails to ultimately produce profitable top-line growth. They, therefore, support their clients in managing decision-making and implementation with a total focus on driving change and measurable impact on clients’ economics and competitive strength.

Consulting Approach:

Frost & Sullivan’s start-to-finish approach to Competitive Strategy can help you:

  • Identify resources that deliver unique and sustainable value to your organization
  • Determine where your company is best positioned to compete
  • Assess the severity of competitive threats
  • Respond to threats and anticipate competitors’ reactions