Transcript lec_10a_(1).

Competitive Advantage
Chapter : 18
Lec: 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
Competitors’
offerings
Competitive
environment
Company’s
capabilities
Customers’
needs
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)