Analysis of Competition & Market Strategies

Creating Competitive Advantage

Competitor Analysis Competitive Strategies Balancing Customer and Competitor Orientations

Creating Competitive Advantage

Competitive advantages require delivering more value and satisfaction to target consumers than competitors do Competitive marketing strategies are how companies analyze their competitors and develop value-based strategies for profitable customer relationships

Competitor Analysis
Competitor analysis is the process of identifying, assessing, and selecting key competitors

Competitor Analysis
Identifying Competitors

Competitors can include: All firms making the same product or class of products All firms making products that supply the same service All firms competing for the same consumer

Five Forces Determining Segment Structural Attractiveness

Industry Concept of Competition

Number of sellers and degree of differentiation Entry, mobility, and exit barriers Cost structure Degree of vertical integration Degree of globalization

A Competitors Expansion Plans

Customer Ratings of Competitors on Key Success Factors

Strengths and Weaknesses

Share of market

Share of mind

Share of heart

Competitor Analysis
Selecting Competitors to Attack and Avoid

Strong or weak competitors Close or distant competitors Good or bad competitors

Figure 9.5 Hypothetical Market Structure

10% 20% Market Market Nichers Follower

30% Market Challenger

40% Market Leader

Competitive Strategies
Competitive Positions

Market leader strategies

Market challenger strategies

Market nicher strategies

Market follower strategies

Competitive Strategies
Competitive Positions Market leader is the firm with the largest market share and leads the market price changes, product innovations, distribution coverage, and promotion spending Market challengers are firms fighting to increase market share Market followers are firms that want to hold onto their market share Market nichers are firms that serve small market segments not being pursued by other firms

Competitive Strategies
Market Leader Strategies Expanding Total Demand

Expand total demand by developing: New users New uses More usage of its products

Figure 9.6 Six Types of Defense Strategies

Market Challenger Strategies

Define the strategic objective and opponents Choose a general attack strategy Choose a specific attack strategy

In Sri Lanka, Tapal has challenged Unilever to emerge as a serious competitor

General Attack Strategies

Frontal Attack Flank Attack

Encirclement Attack

Bypass Attack

Guerrilla Warfare

Pepsi buys Gatorade in a Bypass Strategy

Specific Attack Strategies

Price discounts Lower-priced goods Value-priced goods Prestige goods Product proliferation Product innovation Improved services Distribution innovation Manufacturing-cost reduction Intensive advertising promotion

Market Follower Strategies

Counterfeiter
Cloner Imitator Adapter

Niche Specialist Roles

End-User Specialist Vertical-Level Specialist Customer-Size Specialist Specific-Customer Specialist Geographic Specialist Product-Line Specialist Job-Shop Specialist Quality-Price Specialist Service-Specialist Channel Specialist

Balancing Orientations

CompetitorCentered

CustomerCentered