Transcript Jobber: Principles & Practice of Marketing

Principles and Practice of Marketing
fourth edition
DAVID JOBBER
Chapter 18
Analysing Competitors and Creating
a Competitive Advantage
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
The Porter model of competitive Industry
structure
Potential
entrants
Threat from
new entrants
Industry
Bargaining competitors
Bargaining
Suppliers
Buyers
Power
Rivalry among
existing firms
Threat of
substitute
products
Substitutes
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Power
Competitor analysis
1. Who are our competitors?
2. What are their strengths and
weaknesses?
Competitor
3. What are their strategic
objectives and thrust?
analysis seeks
to answer five
key questions
4. What are their strategies?
5. What are their response
patterns?
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Competitor analysis
•Identify competitors
• Product form
2. What are their strengths and • Product substitutes
• Generics
weaknesses?
• New entries
1. Who are our competitors?
3. What are their strategic
objectives and thrust?
4. What are their strategies?
5. What are their response
patterns?
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Competitor analysis
1. Who are our competitors?
•Audit competitor
capabilities
2. What are their strengths and
• Financial
weaknesses?
• Technical
• Managerial
3. What are their strategic
• Marketing assets
objectives and thrust?
• Strengths and
weaknesses
4. What are their strategies?
5. What are their response
patterns?
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Competitor analysis
1. Who are our competitors?
2. What are their strengths and •Infer competitor
objectives and
weaknesses?
strategic thrust
3. What are their strategic
objectives and thrust?
4. What are their strategies?
5. What are their response
patterns?
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
• Build
• Hold
• Harvest
• Growth directions
Competitor analysis
1. Who are our competitors?
2. What are their strengths and
weaknesses?
3. What are their strategic
objectives and thrust?
4. What are their strategies?
5. What are their response
patterns?
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
•Deduce competitor
strategies
• Target segments
• Differential advantages
• Competitive scope
• Cost leadership
Competitor analysis
1. Who are our competitors?
2. What are their strengths and
weaknesses?
3. What are their strategic
objectives and thrust?
4. What are their strategies?
5. What are their response
patterns?
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
•Estimate competitor
response patterns
• Retaliatory
• Complacent
• Hemmed-in
• Selective
• Unpredictable
Competitor identification
The competitive arena
Product form competitors
• Technically similar products
Product substitutes
• Technically dissimilar products
Generic competitors
• Products that solve the problem or
eliminate it in a dissimilar way
Potential new entrants
• With technically similar products
• With technically dissimilar products
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Company capability profiles
Key success factor
Our company
Competitor 1
Competitor 2
Innovativeness
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
Financial strength
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
Technical assistance to
customers
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
Product quality
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
Well-qualified workforce
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
Access to international
distribution channels
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Creating a differential advantage
Product
Distribution
Differential
advantage
Price
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill
Promotion
Cost drivers
Economies of scale
Learning
Capacity utilisation
Linkages
Interrelationships
Costs
Integration
Timing
Policy decisions
Location
Institutional factors
D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill