1. Top 10 Learning Questions for Chapter 11 DEALING WITH COMPETITION Oamar Nanaig Gianan December 29, 2011 V56 Marketing Class of Prof. Remigio Joseph De Ungria Chapter 11 Marketing Management, Kotler 14 th ed http://www.slideshare.net/maogianan
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3. http://www.slideshare.net/maogianan 1. The Five Forces Determining Segment Structural Attractiveness according to Michael Porter. Industry Competitors (Segment rivalry) Potential Entrants (Threat of mobility) Buyers (Buyer power) Substitutes (Threat of substitutes) Suppliers (Supplier power)
4. http://www.slideshare.net/maogianan 1. The Five Forces Determining Segment Structural Attractiveness according to Michael Porter. Industry Competitors (Segment rivalry) Potential Entrants (Threat of mobility) Buyers (Buyer power) Substitutes (Threat of substitutes) Suppliers (Supplier power) A segment is unattractive when there are actual or potential substitutes for the product. Substitutes place a limit on prices and profits
5. http://www.slideshare.net/maogianan 1. The Five Forces Determining Segment Structural Attractiveness according to Michael Porter. Industry Competitors (Segment rivalry) Potential Entrants (Threat of mobility) Buyers (Buyer power) Substitutes (Threat of substitutes) Suppliers (Supplier power) Buyers posses strong bargaining power, which gives buyers more power to negotiate. Segment is attractive if competition cannot come in easily Suppliers can raise prices or reduce supplies for the segment’s raw materials. If the segment already has lots of strong or aggressive players, it is unattractive.
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8. 2. Entry and Exit barriers http://www.slideshare.net/maogianan Industries differ greatly in ease of entry. Major entry barriers include high capital requirements; economies of scale; patents & licensing; scarce locations; raw materials. Exit barriers also exist. Legal or moral obligations to customers, creditors and employees; government restrictions; low asset-salvage; lack of alternative opportunities; high vertical integration. High Entry barrier Low exit barrier The most attractive segment is when few new firms can enter the industry, and poor-performing firms can exit easily
9. 2. Entry and Exit barriers http://www.slideshare.net/maogianan High Entry barrier High exit barrier Low Entry barrier Low exit barrier Low Entry barrier High exit barrier Profit potential is high, but firms face more risk because poorer-performing firms stay and fight it out Firms easily enter and leave industry; returns are stable and low The worst: Firms enter during good times but find it hard to leave during bad times.
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16. 4. Variables in analyzing competition http://www.slideshare.net/maogianan Share of market Share of mind Share of heart The competitor’s share of the target market The percentage of customers who named the competitor in responding to the statement: “Name the first company that comes to mind in this industry” The percentage of customers who named the competitor in responding to the statement: “Name the company from which you would prefer to buy the product”
41. Top 10 Learning Questions for Chapter 11 DEALING WITH COMPETITION Oamar Nanaig Gianan December 29, 2011 V56 Marketing Class of Prof. Remigio Joseph De Ungria Chapter 11 Marketing Management, Kotler 14 th ed http://www.slideshare.net/maogianan