Chapter 19: Analyzing Competitors and Creating a Competitive Advantage Flashcards
Define Competitive Behavior.
The activities of rival companies with respect to each other; this can take five forms - conflict, competition, co-eixstence, cooperation and collusion.
Describe a Competitive Scope.
The breadth of a company’s competitive challenge, for example broad or narrow.
What is Competitor Audit?
A precise analysis of competitor strenghts and weaknesses, objectives and strategies.
Define Core Competences.
The principal distnctive capabilities prossessed by am company - what it is really good at.
Define a Counter-Offensive Defence.
A counter-attack that takes the form of a head-on counter-attack, and attack on the attacker’s cash cow or an encirclement of the attacker.
Describe Differential Advantage.
A clear performance differential ovet the competition on factors that are important to target customers.
What is Differentiation Strategy?
The selection fo one or more customer choice criteria and positioning the offering accordingly to achieve superior customer value.
Define Divest.
To improve short-term cash yield by droppung or selling off a product.
Describe Entry Barriers.
Act to prevent new companies from entering a market: for example, a high level of required investment.
What is an Encirclement Attack?
Attacking the defender from all sides: i.e. every market segment is hit with every combination of product features.
Define the Experience Curve.
The combines effect of economies of scale and learning as cumulative output increases.
Define the Guerrilla Attack.
Making life uncomfortable for stronger rival through, for example, unpredictable price discounts, sales promotions or heavy advertising in a few selected regions.
Define a Harvest Objective.
The immprovement of profit margins to improve cash flow even if the longer-term result is falling sales.
Describe the Hold Objective.
A strategy of defending a product in order to maintain market share.
Define an Industry.
A group of companies that market products that are close substitutes for each other.
