A competitive analysis of Google and Microsoft would look at their ________ . Both pay high salaries and offer great benefits. But their incentive structures are different. Google encourages collaboration and Microsoft encourages competition. Google’s employees have been more innovative than Microsoft’s.

Competitive analysis is a process that involves relating the company to its environment. Competitive analysis helps identify the strengths and weaknesses of the company, as well as the opportunities and threats that affect it within its target market. This analysis is the basis on which the strategy will be designed, for this we must know or intuit as soon as possible:

The nature and success of the probable changes that the competitor may adopt.

The probable response of the competitor to the possible strategic movements that other companies may initiate.

The reaction and adaptation to the possible changes of the environment that may occur from the various competitors.

The competition is made up of companies that operate in the same market and perform the same function within the same group of customers regardless of the technology used for it. It is not, therefore, our competitor that manufactures a generic product like ours, but one that satisfies the same needs as we do with respect to the same target or consumer audience, for example, cinema can be the theme parks competition, since both are embedded in leisure.