2. Objectives
Learn how to understand competitors as
well as customers via competitor
analysis.
Learn the fundamentals of competitive
marketing strategies based on creating
value for customers.
Realize the need for balancing customer
and competitor organizations in order to
become a truly market-centered
organization.
3. c
Intel
Has dominated the
chip industry
Success is directly
related to Intel’s
competitive
strategy
Strategy focuses
on superior value
and product
Heavy focus on
product and
advertising innovation
and R&D investments
Changing market
needs have
challenged Intel to
adapt
Intel is capitalizing on
5. Definition
Competitive Analysis
The process of identifying key
competitors; assessing their
objectives, strategies, strengths
and weaknesses, and reaction
patterns; and selecting which
competitors to attack or avoid.
7. Competitor Analysis
Steps in the
Process:
Identifying
Competitors
Assessing
Competitors
Selecting
Competitors to
Attack or Avoid
Firms face a wide
range of competition
Be careful to avoid
“competitor myopia”
Methods of
identifying
competitors:
Industry point-of-view
Market point-of-view
Competitor
can help
maps
10. Discussion Question
Create a competitor
map for one of the
following:
•
•
•
•
•
WalMart
McDonald’s
Nike
Starbucks
Google
11. Competitor Analysis
Steps in the
Process:
Identifying
Competitors
Assessing
Competitors
Selecting
Competitors to
Attack or Avoid
Determining
competitors’ objectives
Identifying competitors’
strategies
Strategic groups
Assessing competitors’
strengths and
weaknesses
Benchmarking
Estimating competitors’
reactions
12. Competitor Analysis
Steps in the
Process:
Identifying
Competitors
Assessing
Competitors
Selecting
Competitors to
Attack or Avoid
Strong or weak
competitors
Customer value analysis
Close or distant
competitors
Most companies compete
against close competitors
“Good” or “Bad”
competitors
The existence of
competitors offers several
strategic benefits
13. Competitive Strategies
Basic Winning Competitive
Strategies: Porter
Overall cost leadership
Lowest production and
distribution costs
Differentiation
Creating a highly
differentiated product line
and marketing program
Focus
Effort is focused on serving
a few market segments
15. Competitive Strategies
Basic Competitive Strategies:
Value Disciplines
Operational excellence
Superior value via price and convenience
Customer intimacy
Superior value by means of building strong
relationships with buyers and satisfying
needs
Product leadership
Superior value via product innovation
24. Balancing Customer and
Competitor Orientations
Companies can become so
competitor centered that they
lose their customer focus.
Types of companies:
Competitor-centered companies
Customer-centered companies
Market-centered companies
27. Threat of New Entry
the existence of barriers to entry
economies of product differences
brand equity
switching costs
capital requirements
access to distribution
absolute cost advantages
learning curve advantages
expected retaliation
government policies
28. Competitive Rivalry
number of competitors
rate of industry growth
intermittent industry overcapacity
exit barriers
diversity of competitors
informational complexity and
asymmetry
brand equity
fixed cost allocation per value added
level of advertising expense
29. Supplier Power
supplier switching costs relative to
firm switching costs
degree of differentiation of inputs
presence of substitute inputs
supplier concentration to firm
concentration ratio
threat of forward integration by
suppliers relative to the threat of
backward integration by firms
cost of inputs relative to selling price
of the product
30. Buyer Power
buyer concentration to firm concentration
ratio
bargaining leverage
buyer volume
buyer switching costs relative to firm
switching costs
buyer information availability
ability to backward integrate
availability of existing substitute products
buyer price sensitivity
price of total purchase
31. Threat of Substitution
buyer propensity to
substitute
relative price performance of
substitutes
buyer switching costs
perceived level of product
differentiation
Notes de l'éditeur
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