Amazing Aquariums began as a class project on new business development. Now that the visionaries behind the idea have graduated, they want to explore their business idea and see if the concept could be a successful one. To begin this process, they need to find and analyze similar companies in their potential marketplace and research what services they are currently offering. This will help determine if Amazing Aquariums' concept is indeed a valid one, which could lead to a successful new venture.

 

This activity is important because proper knowledge of competitor analysis will allow organizations to better understand how to be successful in their markets.

 

Read the following case and answer the questions that follow.

 

Sometimes, the best ideas are generated on the basketball court. That is where the idea for Amazing Aquariums was generated. Maybe it was too much television. Maybe it was staring blankly at the fish tank in the school cafeteria. When it was time to come up with a business concept for a marketing class, aquariums were definitely on the brain. At least for Dalton and Antwan they were.

 

The two friends graduated college following successful completion of the project, and are currently contemplating whether there is actually a marketplace for their classroom-based company, Amazing Aquariums.

 

The Concept:

Amazing Aquariums would handle everything fish - from maintenance and cleaning of tanks and ponds, to the actual design, set up, and fish selection for the space. The pair chose to target corporate clients, such as law firms and doctor's offices, for the class project, but they are trying to determine if they should switch their focus to residential markets or include both in their target market.

 

In addition to the aquarium services, Dalton and Antwan are considering some additional fish related opportunities that they feel will generate additional revenue. These ideas include:

• Carrying their own high-end tropical fish and supplies for direct sale to clients
• Opening a fish camp to teach kids basic fish care skills
• Creating an app that provides an interactive educational tour and information for the local aquarium

Essentially, the vision for Amazing Aquariums is to become the top aquarium servicing company in the area, based on their value-added services, and to possibly land a television show about their journey. Although their experience with fish is somewhat limited, Dalton and Antwan believe their hard work and can-do  attitudes are the key to success.

 

To determine whether Amazing Aquariums is a concept that has a place in the market, the pair begin to research their potential local competition. Here is what they find.

 

Competitor A: Geeky Fishman

Run by a professional Aquarist, this company focuses on maintenance of large tanks that require full body immersion for cleaning and maintenance. The company espouses the use of science and fishless cycling to maintain water balance and harmony in the tank. Geeky Fishman has been in business for 7 years. The company website is full of science facts and blogs related to many aqua issues.

 

Competitor B: Exotic Aquatics

Exotic Aquatics is a high-end retail store that focuses on tropical fish and supplies. In order to meet the needs of its clients, the company provides limited consulting services on tank design and will visit its clients' homes if there is an issue with the tank or the fish. The company's main benefits are that it is a retail outlet and can fulfill the customers' needs for food and supplies and that it employs a staff of people who are very knowledgeable in tropical fish. Exotic Aquatics is a long-established leader in the metropolitan area.

 

Competitor C: Calming Aquariums

Calming Aquariums markets themselves as a low cost, turn-key provider of aquariums. The client can choose one of three different sizes of stand-alone aquariums. The tank comes with fish and supplies and the company comes on-site monthly to clean the tank. This service is geared for those who want fish, but don't necessarily want to plan and care for the aquarium. Everything, including fish selection, is done for the client for an initial cost and a flat, monthly fee. Calming Aquariums serves a large geographic area by using independent contractors and has been in business for under 2 years.

1. When performing a competitive analysis, Dalton and Antwan need to look at which of the following four factors of their competition?

• Goals, assumptions, strategy and capabilities
• Goals, assumptions, growth and market share
• Strategy, potential, market share and growth opportunities
• Goals, policies, strategy and market share

2.Dalton and Antwan believe that Calming Aquariums is getting ready to increase its monthly fees and add a more customizable aquarium option, once it has been servicing the area for two years. Which of the following factors of a competitive analysis would this information be a part of?

Multiple Choice

• Strategy
• Goals
• Capabilities
• Assumptions

3.How can Dalton and Antwan determine whether their competitors are satisfied with their current position in the market?

Multiple Choice

• by considering the competition's goals
• by considering their capabilities and determining whether they are utilizing them
• by analyzing the competitors' strategies to see if they are centered around growth.
• by interviewing current customers regarding their experiences

4.If the Amazing Aquarium team was gathering information about where Exotic Aquatics was vulnerable, what would they be assessing?

Multiple Choice

• the entry to market barriers presented by Exotic Aquatics
• the defensive capabilities of Exotic Aquatics
• the offensive moves Exotic Aquatics may make
• the strategy of Exotic Aquatics

5.If Amazing Aquariums was evaluating whether the Geeky Fishman was looking to expand his services, what would the company be evaluating?

Multiple Choice

• the offensive moves the Geeky Fishman may make
• the entry to market barriers presented by the Geeky Fishman
• the vision of the Geeky Fishman
• the defensive capabilities of the Geeky Fishman