Chp 5 Flashcards
Categories of competition (going from closest to farthest)
1) Product form
2) Product category
3) Generic
4) Budget dollar
Product form (direct) competition
Products that look the same, your rivals. A short-term problem as they have the same objectives
Product category (direct) competition
Sell similar products, but there’s a good degree of differentiation. Share shelf space, logistics, suppliers, also your rivals and short-term problems.
Generic (indirect) competition
Different product targeting same customers and customer needs. More of a long-term problem
Budget dollar (indirect) competition
Competing in a similar industry and competing for the same customer dollar
What do direct competitors (inner circle) share in common?
Tactics to differentiate against direct competitors to gain small amounts of market share like mailing coupons at a certain time
Competitors
Firms operating in the same market, offering similar products, and targeting similar customers
Competitive rivalry
The ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position
Competitive behaviour
The set of competitive actions and responses a firm takes to build or defend its competitive advantages and to improve its market positions
Multimarket competition
Occurs when firms compete against each other in several product or geographic markets
Competitive dynamics
The total set of competitive actions and responses taken by all firms competing within a market
Competitor analysis
- Market commonality
- Resource similarity
Market commonality (market segments)
The number of markets in which firms compete against each other
Resource similarity
The extent to which the firm’s tangible and intangible resources compare favourably to a competitor’s in terms of type and amount
High market commonality + high resource similarity
Direct and mutually acknowledged competitors, similar portfolios
