Active learning ideas
Competitive analysis involves identifying who a business is up against and how it can win. Students distinguish between direct competition (businesses selling the same thing) and indirect competition (businesses competing for the same consumer dollar). In the Ontario curriculum, this topic emphasizes the 'Competitive Advantage', the unique feature that makes a product superior in the eyes of the consumer.
Activity 01
Students choose a local entertainment venue (e.g., a movie theatre). They must identify five 'indirect' competitors that are also fighting for a teenager's Saturday night budget (e.g., bowling alleys, video games, restaurants) and explain the threat each poses.
What is the difference between direct and indirect competition?
Activity 02
Groups create a large X-Y axis on chart paper (e.g., Price vs. Quality) and plot various Canadian brands in a specific category like coffee shops or grocery stores. Students walk around to identify 'gaps' in the market where a new business could succeed.
How do businesses determine their market share?
Activity 03
Is a lower price a sustainable competitive advantage? Students debate whether 'cost leadership' (like Walmart) or 'differentiation' (like Apple) is a better long-term strategy for a new Canadian startup.
What strategies create a sustainable competitive advantage?
A few notes on teaching this unit
Watch Out for These Misconceptions
Competition is only between companies that sell the same product.
Students often miss indirect competition. By using a 'discretionary income' simulation, they can see that a fast-food place isn't just competing with other burgers; it's competing with anything else the student might spend $15 on.
Having the lowest price is the best competitive advantage.
Students often default to 'cheaper is better.' Through case studies of premium brands, they learn that service, quality, and brand loyalty are often more sustainable and profitable advantages than a 'race to the bottom' on price.
Methods used in this brief
Primary and Secondary Market Research
An introduction to the methods used to collect original data and the use of existing data to inform marketing decisions.
8 methodologies
Target Markets and Consumer Profiles
Students learn to define specific target markets using demographic, psychographic, and geographic segmentation.
8 methodologies