CREATING COMPETITIVE ADVANTAGE Flashcards
It is the process of identifying competitors in your industry and researching their different marketing strategies.
competitor analysis / competitive analysis
[Enumeration] 4 information that you can attain from performing a competitive analysis.
- Your business’s strengths and weaknesses
- Market understanding
- Specific industry trends
- Required benchmarks for future growth
While identifying competitors, you may find companies that you didn’t know about or that you didn’t consider part of your competition before. Knowing who your competitors are is the first step to surpassing them.
Market understanding
Studying the competition can also help you see which way the industry as a whole is moving.
Specific industry trends
When doing a competitor analysis, you should include companies that are both larger and smaller than your own.
Required benchmarks for future growth
Two major steps in conducting competitor analysis.
- Identifying Competitors
- Assessing Competitors (Competitor Matrix)
_____________ is the backbone of a strong marketing strategy.
Competitive research
After all, if you can’t identify your competitors and their marketing tactics, you’ll struggle to differentiate yourself and your product from the crowd. Knowing who will compete with you for customers is essential to assessing your opportunities and odds for success.
Identifying Competitors
This type of competition refers to the companies or publishers who sell or market the same products as your business. Your customers will often evaluate both you and your direct competitors before making a purchase decision or converting.
Direct Competitors
Potential competitors are those that aren’t currently in the market but may enter the market in the future. These organizations may be new entrants or existing firms that identify as having a strong potential to compete with you.
Potential Competitors
It is a term that refers to the companies or publishers that don’t sell or market the same products but are in competition with your business digitally.
Indirect competition
These are like potential competitors, but they’re much more ready and likely to enter your market. This might be the larger national company that hasn’t entered your local market yet. Think of them as between potential and direct competition.
Future Competitors
___________ are those who provide an alternative to the services that
you offer that solves the same pain points.
Replacement Competitors
[Enumeration] 5 types of competitors.
- Direct competitors
- Potential competitors
- Indirect competitors
- Future competitors
- Replacement competitors
Once you have identified all your competitors, an important next step is to organize all the information you have collected. This is commonly done by creating a ___________.
competitor matrix
It can be referred to as a competitor data spreadsheet
competitor matrix
The parameters you wish to study are set as column headers with each competitor occupying one row of the spreadsheet. Traits to consider when assessing a competitor can include but are not limited to pricing shipping cost, product quality etc. It should be noted that this matrix contains mostly quantitative information, which is not enough to develop a holistic assessment towards your competitors.
Assessing Competitors (Competitor Matrix)
[Enumeration] 4 steps in assessing competitors.
- Determining Competitors’ Objectives
- Identifying Competitors’ Strategies
- Assessing Competitors’ Strengths and Weaknesses
- Estimating Competitors’ Reactions
Knowledge of a competitor’s objectives facilitates a better prediction of the competitor’s reaction to different competitive moves.
Determining Competitors’ Objectives
A _________ is a plan that outlines how a company will achieve its goals.
business strategy
A ____________ refers to
an organization’s long-term goals and how it plans to reach them. In other words, it shows
the path to achieve the defined vision.
business strategy / strategy
A ________ refers to the specific actions taken to reach
the set goals in line with the strategy.
business tactic / tactic
These are the strategic plans of an organization’s top management.
Corporate Level Strategies
They form the mission and vision statement and have a fundamental
impact on the firm’s long-term performance. They guide decisions around growth, acquisitions, diversification, and investments.
Corporate Level
These are integrated into the corporate vision, but with a focus on a specific business. At this level, the vision and objectives are turned into concrete strategies that inform how a business is going to compete in the market.
Business Level Strategies
These are designed to answer how functional departments like Marketing, HR or R&D can support the defined business and corporate strategies of an organization.
Functional Level Strategies
[Enumeration] 3 levels of business strategies.
- Corporate Level
- Business Level
- Functional Level
_________ is an important tool for assessing how well your business has performed, relative to its goals.
Strategic evaluation
It is the last step in the strategic management process and is often paired with strategy control for the continuous improvement of a business
Strategic evaluation
Strategy evaluation operates at two levels: ________ and ________.
strategic; operational
At the _________ level, the focus is given to the consistency of the strategy with the environment,
strategic
At the ___________ level, how well the organization is pursuing the strategy is assessed.
operational
Within a given industry, there are many instances where multiple companies pursue similar if not identical business strategies, this is called a _____________.
strategic group
The analysis of __________ can reveal gaps in the industry that represent untapped opportunities.
strategic groups
Identifying their advantages allows you to decide if you want to compete or concede
to their superiority in certain areas, and discovering their weaknesses can help you exploit their vulnerabilities.
Assessing Competitors’ Strengths and Weaknesses
The most used in Assessing Competitors’ Strengths and Weaknesses.
SWOT Analysis
Aside from SWOT analysis, a more specific method of identifying a business’ strengths and weaknesses would be utilizing the ___________.
5 P’s
[Enumeration] The 5 P’s of Marketing.
- Product
- Price
- Place
- Promotion
- People
The 5 P’s is also referred to as _________.
marketing mix
He popularized the idea of the marketing mix in the 1950s.
Neil Borden
This P under 5 P’s states that: Marketers need to understand the life cycle of a product, and business executives need to have a plan for dealing with products at every stage of the life cycle.
Product
This P under 5 P’s states that: Marketers must link the price to the product’s real and perceived value, while also considering supply costs, seasonal discounts, competitors’ prices, and retail markup.
Price
A __________ can draw in more customers, but it can also
give the impression that the product is less desirable than it was.
discount
This P under 5 P’s states that: It is the consideration of where the product should be available and how it will be displayed. This takes into consideration the availability of the product, whether it can only be bought in person or delivered online, as well as its presentation.
Place
This P under 5 P’s states that: Its goal is to communicate to consumers that they need this product and that it is priced appropriately.
Promotion
____________ encompasses advertising, public relations, and the overall media strategy for introducing a product.
Promotion
Information from an analysis of the competitor’s objectives, assumptions, strategy, and capabilities can be compiled into a response profile of possible moves that might be made by the competitor. This profile includes both potential offensive and defensive moves.
Estimating Competitors’ Reactions
[Enumeration] 4 factors of Customer Response Profile.
- Objectives
- Strategy
- Assumptions
- Resources and Capabilities
The benchmarks for success that a company strive to accomplish.
Competitor’s objectives
This involves any plan that aligns the company with its overall objective.
Competitor’s strategy
These come from previous findings and experiences from the market.
Competitor’s assumptions
Depending on their current level of success and financial standing. This will aid in predicting their next business venture or counterattack to a business’ provocation.
Competitor’s resources and capabilities
Information from an analysis of the competitor’s objectives, assumptions, strategy, and capabilities can be compiled into a response profile of possible moves that might be made by the competitor.
Customer response profile
This includes slashing prices, introducing new features, launch comparison advertisements which are unfavorable to the competition, or go after parts of the market that the competition has served poorly.
Direct Attack
One way of defending a position is to set up exclusive arrangements with key suppliers in the market. Such exclusive arrangements can block the access of rivals to the best suppliers, sources or partners.
Exclusion
Companies can avoid direct competition but still pursue an offensive attack by going into unoccupied markets or countries that have been ignored completely by the rest of the industry.
End-run
A company can respond to competitor price-cuts or new features by emphasizing after-sales service or warranties, implicitly demonstrating that it stands by the superiority of its products.
Highlighting
The first company into a market can secure relationships with the best suppliers, it can acquire the best locations, and it can target and build relationships with the best customers.
Pre-emption
A strong public campaign demonstrating commitment to the market, confidence in the products, or a willingness to meet the competitor’s challenge.
Advertising
A truly aggressive company with deep pockets can eliminate a rival simply by purchasing it.
Acquisition
[Enumeration] 3 categories in Selecting Competitors to Attack and Avoid.
- Strong or Weak Competitors
- Close or Distant Competitors
- Finding Uncontested Market Spaces
A __________ can be defined a business who is in the same field as you but far behind from the level of achievement your current business has.
Weak competitor
____________ on another hand may be a good grinding stone for sharpening the company’s abilities and may have better returns should the company succeed.
Strong competitors
_____________ include alternatives to your product or service in the broadest sense. They do not share the same primary mission and are marketed differently, but they compete for the same population’s time and resources.
Distant competitors
On the other hand, ____________ are those that heavily resemble the state and market of your own business.
close competitors
Today, most firms operate under intense competition and face immense pressure to gain market share. This situation usually happens when a business operates in a saturated market, also known as ___________.
Red Ocean
A _____________ exists when there is potential for higher profits, as there is now competition or irrelevant competition.
Blue Ocean
One of the key attributes of the _____________ opportunity is the “elbow room” to discuss and elaborate on emerging trends and technologies that are poised to reshape what is possible within a given market segment.
Industry Perspective
_____________ refers to viewing competitors within the same industry.
Industry point of view
_____________ refers to competitors trying to satisfy the same customer need or build relationships with the same customer group
Market point of view
A ____________ is a set of policies and procedures that a business uses to gain a competitive advantage in the market. It’s the process of identifying and executing actions that allow a business to improve its competitive position.
competitive strategy
A _____________ is a small part of the marketing strategy, and it includes marketing schedules and activities that the company has to undertake.
marketing plan
________________, on the other hand, is much wider in scope and has a longer period. It includes many plans and activities to reach the overall picture of the company
Marketing strategy
It is the type when businesses and companies support social causes to raise funds or spread awareness and receive marketing benefits like customers and brand loyalty in return. It is a type of marketing strategy that involves a partnership between a for-profit company and a non-profit organization to promote a social or environmental cause while also achieving business objectives.
Cause Marketing
It is a type of marketing strategy that focuses on building long-term relationships with customers by creating personalized experiences and maintaining regular communication.
Relationship Marketing
It is based on the principle of making a good impression on customers. If the customers have good experience with the company’s product/service, they will refer it to their friends and relatives and do the same in return.
Word of Mouth Marketing
It also goes by the name of digital marketing, it’s a marketing strategy where businesses and companies target customers based on their interests and previous interaction with the brand.
Paid Marketing
It is a technique that businesses employ when they have to deal with a diverse population. It means devising a different marketing plan for different customer segments based on their attitude, behavior, beliefs, views, and needs.
Diversity Marketing
It is a marketing type when retailers employ different methods like discounts and coupons to increase sales. The purpose is to encourage and motivate customers to purchase more and more products.
Transactional Marketing
It also goes by the name of internet marketing strategy. It means that the company or business would use the internet for marketing its product and services.
E-marketing
It is a very intelligent form of marketing strategy where businesses and companies advertise their product/service or brand without showing that they’re marketing it.
Undercover Marketing
It also goes by the name of traditional marketing. It means businesses and companies employ traditional channels for marketing. Like, TV, radio, print media, billboards, pamphlets, and newspaper ads.
Offline Marketing
[Enumeration] 9 Types of Marketing Strategies.
- Cause Marketing
- Relationship Marketing
- Word of Mouth Marketing
- Paid Marketing
- Diversity Marketing
- Transactional Marketing
- E-marketing
- Undercover Marketing
- Offline Marketing
[Enumeration] 3 Approaches in Marketing Strategy.
- Entrepreneurial Marketing
- Formulated Marketing
- Intrapreneurial Marketing
This approach to marketing is focused on creating and developing new and innovative products, services, and marketing strategies. This is often associated with small and startup businesses that seek to disrupt established industries or create entirely new markets.
Entrepreneurial Marketing
________________, also known as traditional marketing, is
a more structured and systematic approach to marketing that involves the use of market
research, data analysis, and established marketing techniques to develop and implement
marketing strategies.
Formulated Marketing
It is a hybrid approach that combines elements of entrepreneurial and formulated marketing. This approach is often used by larger organizations that seek to foster a culture of innovation and creativity within their existing structures.
Intrapreneurial Marketing
This is a framework developed by to help businesses choose the most effective competitive strategy based on their strengths and the competitive landscape of their industry.
Porter’s Generic Competitive Strategies
Who developed Porter’s Generic Competitive Strategies?
Michael Porter
[Enumeration] 4 Strategies under Porter’s Generic Competitive Strategies.
- Cost Leadership Strategy
- Differentiation Strategy
- Cost Focus Strategy
- Differentiation Focus Strategy
This strategy focuses on becoming the low-cost producer in the industry. By reducing costs in all aspects of the business, the company can offer products or services at lower prices than its competitors, making it more attractive to price-sensitive customers.
Cost Leadership Strategy
This strategy focuses on creating a unique product or service that sets the company apart from its competitors. By offering something different and of higher quality, the company can attract customers who are willing to pay a premium price.
Differentiation Strategy
It involves targeting a narrow segment of the market with a low-cost product or service. The company seeks to achieve a competitive advantage by offering a product or service at a lower cost than competitors, while still maintaining a reasonable level of quality.
Cost Focus Strategy
It involves targeting a narrow segment of the market with a unique and differentiated product or service. The company seeks to differentiate itself from competitors through factors such as product design, quality, branding, or customer service.
Differentiation Focus Strategy
The term “_______________” refers to the method through which a business establishes its place in the market relative to its rivals.
Competitive Positioning
[Enumeration] 4 broad positions that brands typically take in the market.
- Market Leaders
- Market Challengers
- Market Followers
- Market Nichers
This could be a product, brand, company, organization, group name which has the highest percentage of total sales revenue of a particular market. This dominates the market by influencing the customer loyalty towards it, distribution, pricing, etc.
Market Leader
A _____________ is a firm that has a market share below that of the market leader, but enough of a presence that it can exert upward pressure in its effort to gain more control.
market challenger
[Enumeration] 4 Types of Market Challenger Strategies
- Frontal Attack
- Flanking Attack
- Encirclement Attack
- Bypass Attack
Instead of focusing on the market leader’s shortcomings, the challenger looks to equal the leader’s efforts across the board. The challenger attempts to attack the leader’s strengths than its weaknesses.
Frontal Attack
A ____________ is a market challenger strategy in which the challenger identifies gaps in the market or weaknesses in the leader’s product offerings and marketing strategy and then creates a new product or service that fills those gaps.
flanking attack
It is a market challenger strategy in which the challenger targets the leader on multiple fronts simultaneously, using a combination of different tactics to weaken the leader’s market position.
Encirclement Attack
It is a market challenger strategy in which the challenger seeks to bypass the leader’s existing distribution channels or market segments by creating new channels or segments that are not currently being served.
Bypass Attack
A _____________ is a business or organization that adopts a strategy of observing the actions of its competitors in a particular market and then imitating or copying them.
market follower
[Enumeration] 4 Types of Market Follower.
- Counterfeiter
- Cloner
- Imitator
- Adaptor
A ___________ is someone who creates a replica of a product or item, with the intention of passing it off as the original.
counterfeiter
A __________ is someone who copies a product or service but does not necessarily attempt to pass it off as the original.
cloner
___________ is someone who copies a product or service, but adds their own unique twist or flavor.
Imitator
_______________ is someone who takes an existing product or service and modifies it to meet the needs of a different market or audience.
Adaptor
A _____________ is a business strategy that focuses on serving a small, specialized segment of the market.
market nicher
[Enumeration] 4 Types of Balancing Customer and Competitor Orientations
- Market Orientation
- Product Orientation
- Customer Orientation
- Competitor Orientation
This company focuses on understanding and meeting the needs and wants of customers in a particular market. This involves gathering information about customers, competitors, and the market as a whole, and using this information to develop products, services, and marketing strategies that align with customer demand.
Market Orientation
This company focuses on developing and improving its products, often without a strong consideration for the needs or wants of customers. The goal is to create the best possible product and assume that customers will want it.
Product Orientation
This company places the customer at the center of its operations, focusing on understanding and meeting the needs and wants of customers through products, services, and marketing strategies. The goal is to create customer loyalty and satisfaction.
Customer Orientation
This company focuses on analyzing and understanding the strategies and actions of competitors in the market. This involves gathering information about competitors’ products, pricing, marketing, and other tactics, and using this information to develop competitive strategies.
Competitor Orientation
_______________ refers to the focus on understanding and meeting the needs and expectations of customers, while ______________ refers to the focus on monitoring and analyzing the strategies and actions of competitors in the market.
customer orientation; competitor orientation
[Enumeration] 2 Company Highlights.
- Company Profile
- Key Competitive Advantage
This includes information such as company name, background, history, and overview of the company’s key personnel.
Company Profile
It is a unique attribute or feature of a product, service, or organization that sets it apart from its competitors and gives it an edge in the market.
Key Competitive Advantage
[Enumeration] 3 Types under Market Information
- Target Market
- Market Share
- Market Strategy
This refers to a specific group of consumers that a company aims
to serve with its products or services.
Target Market
This refers to the percentage of total sales or revenue in a particular market that is captured by a specific company or brand.
Market Share
It is a plan or approach that a company develops to promote and sell its products or services to target customers.
Marketing Strategy
[Enumeration] 3 Categories under Product Information.
- Products & Services
- Pricing
- Distribution Channels
These are the offerings provided by a company to meet the needs and wants of customers.
Products & Services
This refers to the process of setting a value or monetary worth for a product or service that a company offers to customers.
Pricing
These refer to the various paths or routes through which a company’s products or services are made available to customers.
Distribution channels
[Enumeration] Meaning of SWOTT Analysis.
- Strengths
- Weaknesses
- Opportunities
- Threats
- Trends
This refers to the internal capabilities, resources, and advantages that a company has over its competitors.
Strengths
This refers to the internal factors that may hinder the company’s performance and competitive position.
Weaknesses
This refers to external factors that could positively impact the company’s performance and growth.
Opportunities
This refers to external factors that could negatively impact the company’s performance and competitive position.
Threats
This refers to the broader societal, economic, and industry-wide changes that may affect the company’s future growth and success.
Trends
