Competition And Competitive Strategies

Question 1

What are the LOs

Answer 1

Examine how to identify competitors to monitor

consider competitive forces in an industry using porters 5 forces model

understand the concepts and tools of competitor benchmarking and how to learn from competitors

discuss the planning of non aggresive competitor strategies as a way of sustaining competitive advantage

Question 2

what are the 3 types of competitors

Answer 2

direct competitors
indirect competitors
substitutes or new entrants

Question 3

what are porters 5 forces (add detail to each one)

Answer 3

threat of entry. scale and experience, access to supply or distribution channels, expected retaliation, legislation or government action, product differention, gaps in the market

threat of substitues. the price/performance ratio, costs of switching, perceieved level of product differentiation, quality depreciation

power of buyers. concentrated buyers, low switching costs, buyer competition threat, standardized products, price sensitivity

power of suppliers. concentrated suppliers, high switching costs, supplier competition threat, differentiated products.

copetition rivalry. competitor balance, industry growth rate, high industry stake, high fixed costs, high exit barriers, low differentiation

Question 4

what is competitve benchmarking, and how do you predict competitors future strategies

Answer 4

1. assess competitors current and future objs
2. assess competitors current strategy
3. assess competitors resource profile

Question 5

how do you learn from competitors 3 ways

Answer 5

analyse successfull competitors, why are they successful, copy and improve on them

analyse unsucessful competitors, why are they not sucessful, avoid and overcome these pitfalls

look to other industries and markets, how can you adapt and use, adopt and adapt best practise

Question 6

what are the 2 market leader strategies (explain)

Answer 6

protect/defend current market share,
constant innovation
strong customer relationships
minimizing weknesses
maintaining consistent prices that proide value
creating good service experience

expand total demand/makret share,
new users new uses and more usage

Question 7

what are the 5 market challenger strategies

Answer 7

frontal attack, lower prices, better quality products, aggressive advertising, greater quality service

flank attack, find where copetitors are underperfoming and cater to that area, challenger can identify the segment taht competitors left out and target that area

encireclement attack, doing frontal and flank at the same time

bypass attack, developing new products, diversifying into unrelated products, expanding into new geographical markets

guerrilla marketing, gaining small victories that can over time give you a huge impact on you to increase your market share