Chapter 4: Competitor Analysis and RBV: Seeking Sustainable Competitive Analysis Flashcards
competitor analysis
the process of identifying key competitors; assessing their objectives, strategies, strengths and weaknesses and future strategies; and selecting which competitors to attack or avoid.
identifying competitors: Strategic groups
follow similar combinations of strategies, exhibit similar characteristics and aim at similar customer segments.
・Extent of product diversity and geographic coverage
・Extent of branding and marketing activities
・pricing policy/ actions
assessing competitor’s objectives
what are they trying to achieve?
why are the trying to achieve it?
assessing objectives allows us to understand
・intensity of rivalry
・areas of expansion
・expand or not product portfolio
・investment priorities
competitors’ strategies
what target markets are they pursuing? (hardest)
how are they operating?
what marketing mix are they adopting?
competitors’ R & Cs
assessing R & C profile allows us to understand:
ability to conceive- design- produce ability to respond to demand ability to market ability to finance ability to manage
how to assess R & C of competitors
new product success rate product availability promotional expenditures marketing channels financial reports hiring practices
projecting
competitors’ future strategies
how to envision their future strategies? ・past strategies/actions and successes/ failure ・recent acquisitions/ mergers/ alliances ・corporate espionage ・peripheral vision/ scenario building
strategic thrust
・market penetration or expansion
・product development
・market development
・enter new markets
Issues of concern
1. Close or distant competitors strategic group 2. Weak or strong competitors key success factors (KSF) customer value analysis (CVA)
KSF
key success factors
KSF are those functions, activities or business practices, defined by the market and as viewed by the customer, that are critical for success in the market place.
market leader strategies
1. protect/ defend current market share ・constant innovation/ quality products ・strong customer relationships ・minimising weaknesses ・maintaining consistent prices that provide value ・creating good service experience
- Expand total demand/ market share
・new users
market challenger strategies
- challenge the market leader
- challenge firms of the same size, smaller size or regional or local firms
attack strategies
・frontal/ flank/ encirclement/ bypass/ guerilla
market follower strategies
innovative immitation
counterfeiter
cloner
imitator
adapter
market nicher strategies
niche specialties examples: ・specific customer or customer size ・geographic areas ・product/ product line or product feature ・service channel
