A note on the topic of "competitive landscape": for MBA students

A note on the topic of "competitive landscape": for MBA students [informed by perplexity.ai] It serves as a preliminary literature review.

My question 1: "What is the topic of competitive landscape in strategic management all about?

The reply: "The competitive landscape in strategic management refers to the analysis of the current state of competition within a specific market or industry. This analysis is crucial for businesses to understand their direct and indirect competitors, their strengths and weaknesses, and the overall dynamics that influence market behavior.

Key Components of Competitive Landscape Analysis

1. Identification of Competitors:
   • Businesses must identify both direct and indirect competitors. This includes understanding who they are competing against for customers and market share16.
2. Market Dynamics:
   • The competitive landscape encompasses various factors such as the number of competitors, their market share, product offerings, pricing strategies, and customer service approaches. It also includes macroeconomic factors that can impact business operations47.
3. Analytical Frameworks:
   • Several frameworks are utilized to conduct a competitive landscape analysis:: Analyzes competitive rivalry, the threat of new entrants, substitutes, and the bargaining power of suppliers and buyers to assess market attractiveness
4. Strategic Insights:
   • The insights gained from a competitive landscape analysis help businesses develop strategies to enhance their competitive advantage. This includes identifying gaps in the market, potential areas for growth, and necessary adjustments in marketing or product development strategies2310.

Importance of Competitive Landscape in Strategic Management

• Informed Decision-Making: By understanding competitors' strategies and market positioning, companies can make informed decisions that align with market realities.
• Adaptation to Market Changes: Continuous monitoring of the competitive landscape allows businesses to adapt to changes in consumer preferences and technological advancements.
• Strategic Planning: The analysis serves as a foundation for strategic planning, enabling companies to position themselves effectively within the market and anticipate future challenges13.

In summary, the competitive landscape is a vital aspect of strategic management that provides businesses with essential insights into their competitive environment. By leveraging this information, organizations can craft effective strategies to enhance their market position and achieve long-term success."

My question 2: "What are the research gaps and research issues on the topic of competitive landscape?"

The reply: "Research gaps and issues in the topic of the competitive landscape in strategic management highlight areas where existing literature is lacking or where further exploration is needed. Here are some key points based on the current findings:

Identified Research Gaps

1. Synthesis of Analytical Approaches:
   • There is a notable gap in synthesizing various analytical methods used for competitive landscape analysis. Current literature often presents these methods in isolation, making it challenging for decision-makers to integrate them effectively into a cohesive strategy. A holistic approach that combines internal analysis, environmental scanning, and competitive analysis is needed to provide clearer guidance for strategic decision-making, particularly for small and medium-sized enterprises (SMEs) 1.
2. Focus on SMEs:
   • Much of the existing research on competitive landscape analysis has been conducted with large organizations in mind. This leaves a gap in understanding how SMEs can effectively utilize competitive landscape analysis tailored to their unique characteristics and limitations. There is a need for frameworks that specifically address the strategic needs of SMEs 1.
3. Dynamic Market Changes:
   • The rapid evolution of markets and technology creates a need for updated methodologies that can adapt to changing competitive landscapes. Research should focus on developing frameworks that allow for continuous monitoring and adaptation to new market conditions, rather than relying on static analyses 45.
4. Integration of Customer Insights:
   • Many analyses overlook the importance of customer feedback and insights when assessing competitors. Future research could explore how integrating customer perspectives can enhance competitive analysis and lead to more effective strategic decisions 5.
5. Limitations of Current Tools:
   • There are challenges associated with the tools used for competitor monitoring, such as data accuracy and relevance. Research should address how to improve these tools to provide more actionable insights that align with specific business objectives 8.

Research Issues

1. Information Overload:
   • The vast amount of data available for competitive analysis can lead to information overload, complicating decision-making processes. Research is needed to develop strategies for filtering and prioritizing information effectively 2.
2. Bias in Data Collection:
   • The potential for bias in data collection methods poses a significant issue. Future studies should investigate ways to ensure that data collected about competitors is comprehensive and unbiased, which is crucial for accurate strategic planning 8.
3. Analysis Paralysis:
   • Organizations may experience "analysis paralysis" due to excessive data without clear objectives. Research should focus on establishing frameworks that guide businesses in setting clear goals for their competitive analysis efforts 4.
4. Cross-Market Comparisons:
   • There is limited research on how analyzing competitors from different markets or segments can provide insights into emerging threats or opportunities. Exploring cross-market comparisons could yield valuable strategic insights 4.

By addressing these gaps and issues, future research can significantly enhance the understanding and application of competitive landscape analysis in strategic management, ultimately aiding organizations in navigating their competitive environments more effectively."

My question 3: "What are the competitive landscape-related issues as reported in the Hong Kong public media on the business sectors of (1) hotels, (2) catering services and (3) consumer banking over the last 10 years?

The reply: "Over the past decade, the competitive landscape in Hong Kong's business sectors of hotels, catering services, and consumer banking has been shaped by various challenges and issues as reported in public media. Here’s a summary of the key issues affecting each sector:

1. Hotels

• Impact of Tourism Decline: The hotel industry faced significant challenges due to a decline in tourist arrivals, particularly from Mainland China. This was exacerbated by political unrest starting in mid-2019 and the COVID-19 pandemic, which led to occupancy rates dropping drastically and some hotels closing permanently or undergoing redevelopment14.
• Market Competition: Increased competition from hotels in nearby regions, such as Macau, has pressured Hong Kong hotels to lower prices, which adversely affects revenue growth and profitability. The anticipated price competition has raised concerns about the sustainability of hotel operations7.
• Future Developments: Despite the challenges, there have been ongoing investments in new hotel projects, although many have been delayed due to the pandemic. The industry is slowly recovering but remains uncertain about future performance as it navigates changing market dynamics14.

2. Catering Services

• Labor Shortages and Rising Costs: The catering sector is grappling with a severe labor shortage and soaring operational costs. These factors have made it difficult for many eateries to maintain profitability while trying to uphold Hong Kong's reputation as a culinary destination2.
• Intense Competition: Restaurants face stiff competition not only from local establishments but also from emerging trends driven by consumers on the Mainland who are increasingly sophisticated and demanding higher quality and unique dining experiences. This has intensified the competitive pressure on local caterers2.
• Adaptation Challenges: Many local businesses struggle with adapting to these changes due to a lack of foresight or willingness to innovate. The structural shifts in consumer preferences pose a significant challenge for traditional catering businesses2.

3. Consumer Banking

• Increased Competition: The banking sector in Hong Kong has experienced heightened competition, particularly from Mainland banks that have expanded their presence significantly. This has resulted in shifting market shares and increased pressure on local banks to enhance their service offerings36.
• Digital Transformation Challenges: The rise of digital banking has transformed customer interactions but also introduced new consumer protection challenges. Issues related to marketing practices and the management of third-party platforms have emerged as critical areas needing attention from regulators like the Hong Kong Monetary Authority (HKMA)9.
• Regulatory Adjustments: The HKMA has been proactive in addressing gaps in consumer protection within the digital banking landscape, urging banks to revise their marketing strategies and ensure compliance with updated codes of practice to enhance customer experience9.

In summary, the competitive landscapes of hotels, catering services, and consumer banking in Hong Kong have been marked by significant challenges over the last decade, driven by external pressures such as tourism declines, operational costs, labor shortages, and evolving consumer expectations. Each sector must navigate these issues while adapting to a rapidly changing environment."

My question 4: "What have been the strategic responses towards the competitive landscapes facing the business sectors of (1) hotels, (2) catering services and (3) consumer banking over the last 10 years as reported in the Hong Kong public media?

The reply: "Over the last decade, the business sectors of hotels, catering services, and consumer banking in Hong Kong have implemented various strategic responses to navigate their competitive landscapes. Here’s an overview of these strategies as reported in public media:

1. Hotels

• Diversification of Offerings: To attract a broader range of tourists and extend their stay, hotels have engaged in diversifying their services. Initiatives include developing meetings, incentives, conventions, and exhibitions (MICE) to enhance business travel appeal and attract larger groups1.
• Investment in Technology: Hotels have prioritized technology upgrades to improve operational efficiency and customer experience. This includes investments in digital platforms for bookings and customer service, which are essential for adapting to post-pandemic consumer behavior4.
• Sustainability Initiatives: There is a growing emphasis on sustainability within hotel operations. Many establishments are adopting eco-friendly practices and reporting metrics related to energy, water, and waste management as part of their capital expenditure priorities. This shift is driven by increasing scrutiny from stakeholders regarding environmental impacts4.

2. Catering Services

• Government Support and Subsidies: The Hong Kong government has introduced multiple rounds of subsidies aimed at supporting the catering industry during economic downturns exacerbated by the COVID-19 pandemic. These subsidies have helped businesses manage operational costs and maintain employment levels2.
• Adaptation to Consumer Preferences: Catering services have increasingly adapted their business models to meet changing consumer habits, particularly the rise in demand for online food delivery. Many restaurants have shifted focus towards takeaway and delivery services to cater to health-conscious consumers wary of dining out during the pandemic2.
• Emphasis on Fast Casual Dining: The sector has seen a trend towards fast casual dining formats that offer convenience and value for money. These establishments have proven more resilient during periods of social distancing due to their operational flexibility and suitability for smaller groups2.

3. Consumer Banking

• Digital Transformation Initiatives: In response to the rise of fintech and changing consumer expectations, traditional banks have heavily invested in digital infrastructures. This includes enhancing online banking capabilities and integrating mobile banking solutions to improve customer accessibility and service efficiency69.
• Launch of Virtual Banks: The introduction of virtual banks has disrupted the traditional banking landscape, prompting incumbent banks to reevaluate their service offerings. This competition has led to improved services such as higher interest rates on deposits and reduced fees, aimed at retaining customers against new entrants offering innovative solutions9.
• Focus on Cybersecurity: As digital banking expands, cybersecurity has become a top priority for banks. Institutions are implementing robust measures to protect customer data and ensure secure transactions, which is critical in maintaining trust in digital financial services69.

In summary, each sector has adopted strategic responses tailored to their unique challenges within Hong Kong's competitive landscape. These strategies reflect a combination of government support, technological adaptation, consumer-focused innovations, and sustainability efforts aimed at ensuring resilience and growth in a rapidly changing environment."

Reference: a collection of blog notes on using chatgpt for research purpose.