competitive advantage chapter : 18 lec: 10 a. competitor analysis competitive advantage an advantage...
TRANSCRIPT
Competitive Advantage
Chapter : 18Lec: 10 a
Competitor Analysis
• Competitive Advantage An advantage over competitors gained by
offering consumers greater value than competitors do
e.g. Monal• Competitor 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
Monal
Competitor Analysis
• Competitive marketing strategies Strategies that strongly position the company
against competitors and that give the company the strongest possible strategic advantage
Steps ins Analyzing Competitors
Identifying the company’s competitors
Assessing competitors’ objectives, strategies, strengths and weaknesses, and reaction patterns
Selecting which competitor to attack or avoid
Competitor Analysis• Identifying Competitors - similar products and services - Same customers - Similar prices e.g. Coke vs. Pepsi• Competitors Myopia - latent competitors can also be a threat along with the
current competitors e.g. Kodak – Fujifilm – Digital Cameras Telegraph department- cell phone/ Internet Encyclopaedia Britannica – Wikipedia etc.
Coke vs. Pepsi
Identifying Competitors
- Industry point of view e.g. Oil Industry, Automobile industry,
Telecom industry etc.- Market Point of view e.g. Satisfying the same customer need and
build relationship with the same customer
Telecom Industry
Assessing Competitors
• Determining Competitors’ Objectives - Importance on profitability, market share,
service, technology and other goals e.g. Objective low cost, it will reduce cost Zong - New segments e.g. Pizza Hut diverse menu Dominos – Only Pizza
Assessing Competitors
• Identifying Competitors’ Strategies - Strategic Group: A group of firms in an industry
following the same or a similar strategy e.g. Surf Excel ---Ariel Lado Soap--- Gayee soap - A company can jump from one group to
another e.g. Life Bouy to premium sector
Competitors
Assessing Competitors
• Estimating Competitors’ Reactions - What will our competitors’ do? - price cuts, promotion, new product e.g. Telecom wars e.g. Lawn collections (Gul- Ahmed, Sana
Safinaz, Al-Karam)
Assessing Competitors
• Assessing Competitors’ Strengths and Weaknesses - What can our competitors’ do? - gather information about them - Secondary sources are good for information - Companies can benchmark themselves Benchmarking Comparing company’s products and processes to
those of competitors or leading firms in other industries to identify “best practices” and find ways to improve quality and performance
Selecting Competitors to Attack and Avoid
• Strong or weak competitors Customer value analysis Analysis conducted to determine what benefits
target customers value and how they rate the relative value of various competitors’ offers
e.g. Mac makeup– good quality Charles & Keith– comfortable and trendy
Charles & Keith
Strategic Sweet Spot versus Competitors
• u
Customers’ needs
Company’s capabilities
Competitors’ offerings
Competitive environment
Selecting Competitors to Attack and Avoid
• Close or Distant Competitors e.g. Nike with Adidas and Reebok instead of
Bata - Banks taking over other banks
Selecting Competitors to Attack and Avoid
• Good or Bad Competitors Good: go by the rules of the industry Bad: Break the rules or make their own rules
• Finding Uncontested Market Spaces - Blue ocean strategy
Designing a Competitive Intelligence System
• Collecting• Analyzing • Action
Competitive Strategies• Approaches to Marketing Strategy - No one strategy is best for every company - (Volunteer to Volunteer) V2 V marketing taking
a hype• Three stages of marketing strategy - Entrepreneurial Marketing---your own rules - Formulated Marketing---established companies
follow - Intrepreneurial Marketing---to get out of
formulated marketing and be close to customers
Basic Competitive Strategies
• 3 winning strategies- Overall cost leadership (production &
Distribution cost) e.g. Wal-Mart, Savor- Differentiation (something different) e.g. Samsung 3D Television- Focus (be specific about who you are targeting)