#12 Competitor-Orientation Flashcards
1
Q
What are Porter’s 5 Forces?
A
- Intense segment rivalry
- New entrants
- Availability of substitutes
- Buyer’s growing bargaining power
- Supplier’s growing bargaining power
2
Q
What is the industry concept of competition?
A
- Number of sellers, degree of differentiation
- Entry, mobility, exit barriers
- Cost structure
- Degree of vertical integration
- Degree of globalization
3
Q
What is the market concept of competition?
A
- Direct competition
- Indirect competition
- Market concept - fulfil the same needs although it may not be the same
4
Q
Identifying competitors’ strategies
A
- Strategic group - a group of firms in an industry that is following the same/similar strategy in a given target market
- Inter vs Intra-Group Rivalry
- overlapping customer segments?
- customers may not perceive differences
- expansion into new strategy segment
5
Q
Assessing competitors’ strengths and weaknesses
A
- Critical success factors
- Customer Value Analysis
- Market Share (Heart and Mind)
- Review any Assumptions held by Competitors
6
Q
Understanding reactions and choosing battles
A
Reaction Patterns
- Tiger
- Laid Back
- Selective
- Stochastic
Which to Attack/Avoid
- Strong vs weak
- Close vs distant
- Good vs bad
7
Q
Competitive Positions (3 Generic Positions)
A
- Cost Leadership
- Differentiation
- Focus
8
Q
Market-Leader Strategies
A
- Expand Total Market
- Expand Market Share
- Defend Market Share
- Position defense
- Flank defense
- Preemptive defense
- Counteroffensive defense
- Mobile defense
- Strategic withdrawal
9
Q
Market-Challenger Strategies
A
Attack Strategies
- Frontal Attack
- Flank Attack
- Encirclement Attack
- Bypass Attack (Leapfrog)
- Guerilla Attack
10
Q
Market-Follower
A
Why?
- Lack resources
- Not capable of being a challenger
- Leadership requires a lot of expenses
Strategies
- Counterfeiting
- Imitating
- Cloning
- Adapting
11
Q
Market-Nicher
A
Win by margins and not profits
