Dealing with Competition

Ricko Rinaldo 122121102

Identifying competitors

Industry Market

Numbers of sellers and degree of product differentiation

Presence or absence of entry , mobility and exit barriers

Cost structure

Competitors as companies that satisfy the same customer need

Analyzing competitors Strategiec group Objectives Strenghts and weaknesses

Analyzing competitors Strategic group

Analyzing competitors Objectives

Each competitor pursues some mix of objectives : current profitability, market share growht, cash flow, technological leadership, and sevice leadership.

Analyzing competitors Strenghts and weaknesses

A company needs to gather information about each competitors strenght and weaknesses

Competitive strategies Market leaders strategies Market challenger strategies Market follower strategies Market nicher strategies

10%Market nicher

20%Marketfollower

30%Market

challenger

40%Marketleaders

Market leaders strategies Expanding the total market Defending market share Expanding market share

Market challenger strategies Lower priced or discounted products Improved products and services Wider variety of offerings

Market follower strategies Counterfeiter Cloner Imitator Adapter

Market nicher strategies

Smaller firms normally avoid competing with larger firms by targeting small markets of little or no interest to the larger firms