List the key points of the 2 main types of technical analysis

Usually, the customers that a business looks favorably upon are also looked upon favorably by competitors. A market is created when a certain segment of customers demand a certain product or service. In response, an industry is formed by competitors who want to satisfy this market by producing and operating similar products and services. Enterprises must also analyze the industry in depth when determining the field of business, as the saying goes, "Know your enemy and know yourself, and you will not be in danger".　　First, the definition of competitors Understanding the influence of the industry is very important, but not enough. "Peer is a grudge", this is just a generalization, any one enterprise is difficult to have enough resources and ability, and there is no need with the industry for the enemy, all sides of the enterprise, it must deal with the main competitive relationship, that is, the relationship with direct competitors. Direct competitors are those competitors that sell essentially the same products or provide essentially the same services to the same customers. The intensity of competition is defined as: the intensity of the competitive means employed by the parties to seek a competitive advantage.　　Similar to market segmentation, industries can be subdivided into strategic clusters. Strategic clusters (also known as strategic groups) are groups of firms in an industry that follow the same strategic direction and adopt the same or similar strategies. Only firms in the same strategic group are true competitors. Because they usually use the same or similar technology, produce the same or similar products, provide the same or similar services, and adopt competitive pricing methods, the competition between them is more direct and intense than the competition with enterprises outside the strategic group.　　Second, analyzing competitors After establishing important competitors, it is necessary to make as in-depth and detailed analysis of each competitor, revealing each competitor's long-term goals, basic assumptions, current strategies and capabilities, and to determine the basic contours of their actions, especially competitors to industry changes, as well as when threatened by the competitors may make the response.　　1. Competitors' long-term goals. An analysis of a competitor's long-term goals can predict whether the competitor is satisfied with his current position, and thus determine how the competitor will change his strategy and how he will react to external events. The strategic goal of Japanese motorcycle companies in the 1970s and 1980s was clearly to fully capture the United States, the biggest and best market in the world. Therefore, like Honda, when encountering tariff barriers may be taken to the United States to build factories directly method to bypass the restrictions of the U.S. tariff barriers.　　2. Competitors' strategic assumptions. The strategic objectives established by each firm are fundamentally based on their assumptions. These assumptions can be divided into three categories: First, the theoretical assumptions espoused by competitors. For example, the theory practiced by many American companies is short-term profit, because only profit, can support the development. And Japanese companies believe in the theory of market share and economies of scale, they believe that, as long as they can capture the market, expand the scale of production and sales, unit costs will fall, profits naturally rolled in, and then there is a golden harvest in the fall.　　Secondly, competitors' assumptions about their own enterprises. Some enterprises believe that they are superior in function and quality, and some enterprises believe that they have an advantage in cost and price. Name-brand product firms may be dismissive of low-grade product penetration, while firms that win on price will hit other firms head-on when they cut prices.　　Third, competitors make assumptions about the industry and other firms in the industry. Harley was not only confident in the motorcycle industry in the 1960s, but also took the Japanese firms too lightly, believing that they were merely in the start-up learning stage and posed no threat to them. However, the Japanese bowed their heads and said, "We're schoolchildren." On the one hand, but the Americans underestimated their own engraved: to see who laughs last. After 20 years of cultivation, the Japanese motorcycle has finally been cultivated in the United States.　　Indeed, careful testing of strategic assumptions, both about competitors and about oneself, can help managers identify biases and blind spots about the environment in which they operate. The scary thing is that many assumptions are not yet clearly realized or not realized at all, or even wrong; there are also assumptions that were correct in the past but have become less correct due to changes in the business environment, but companies are still following the assumptions of the past.　　3. Competitors' strategic approaches and methods. Strategic approaches and methods are specific and multifaceted, and should be analyzed from all aspects of the enterprise. From the perspective of marketing strategy, Honda's marketing strategy ways and means include at least some of these elements:: in the product strategy, small cars to cut the U.S. market, to provide as many small car models to improve the attractiveness of the product; in the small car market and then penetrate the market for large cars; in the price, through the advantages of scale and management to improve the reduction of product costs, low-priced sales; in promotions, the establishment of a new image of motorcycles, so that it is the same as the large car market. The new image of the motorcycle was established to differentiate it from Harley's rugged style. These strategic approaches proved to be effective and successful. Comparatively speaking, Harley has no clear strategic approach and method. Harley's parent company, AMF, although Harley also injected capital to increase production, but also once for the production of small cars, the results due to a variety of factors do not synergize with the end of the failure.　　4. Competitors' strategic capabilities. Whether it is the goal or the way, it should be based on the ability. After analyzing and studying the competitor's goals and ways, but also in-depth study of competitors have the ability to use other ways to achieve their goals. This involves how the enterprise plans its strategy to cope with the competition. If the firm has an overall competitive advantage over its competitors, then there is no need to worry about when and where conflict will occur. If the competitor has an overall competitive advantage, there are only two ways to deal with it: either don't offend the competitor and be a willing follower, or avoid it. If you do not have a comprehensive competitive advantage, but in some aspects, some areas with differential advantage, then you can have a differential advantage in their own aspects or areas to make the article enough, but to avoid their own shortcomings touching their strengths.　　Third, the competitors' response to the competition from the above analysis can be seen in the strategic management is a "game" process. First, we have to choose our opponents, the second is to judge the opponent's game, and according to "the opponent will be how we react to this move" to determine our strategy.　　To summarize, there are only three types of reactions to competition: no counter-action, defensive counter-action, and offensive counter-action. This depends on whether the competitor is satisfied with its current position, whether it is in the midst of a strategic shift, and how much the competitor irritates it. Specifically, they can be categorized into six counterattack patterns.　　1. Those who sit back and watch the events without taking immediate counteraction. The reason may be convinced that customer loyalty, may not have the necessary resources to counterattack, may not have reached the level of counterattack. Therefore, for this type of competitors should be extra cautious.　　2, the total defense, will be external threats and challenges to make a comprehensive response to ensure that its position is not violated. But the comprehensive defense will also stretch the front, against a competitor can, if at the same time to deal with the attack of several competitors, will not be able to do.　　3, the dead position type counterattack. Because of its counterattack range of concentration, but also have the backwater fight to the death of the conviction, so the reaction intensity is quite high. This type of counterattack is more effective. And because it is concentrated in a smaller range of counterattack, so its staying power is also stronger.　　4. Fierce counterattackers. This type of enterprise in all areas of its offense will make rapid and strong counterattack. For example: Procter & Gamble will never let a competitor's detergent easily on the market. Ferocious counterattacker to the competitors to show that it is best not to touch him, the tiger's ass can not be touched.　　The selective counterattacker. May respond only to certain types of attacks and not to others. Therefore, it is important to understand the sensitive parts of this type of counterattacker to avoid unnecessary conflict.　　6. Random type counterattacker. Its counterattacks are the most uncertain or simply unpredictable and it may take any of the possible counterattacks.　　The three aspects of competitive analysis have been discussed above. In view of the importance of the competitive environment, it is very necessary for enterprises to establish an intelligence system for monitoring and analyzing the competitive environment in order to collect and analyze the strategic dynamics of competitors in a timely and systematic manner.