Group 5: Creating Competitive Advantage Flashcards by Keren Keziah Tangarorang

This refers to certain factors that allow a company to produce products and services cheaper and with a higher quality than its rivaling companies.

Competitive Advantage

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To be able to create effective marketing
strategies, a company needs constant analysis of
their existing and potential competitors that
includes their prices, strategies, promotions,
offers, and many more.

Competitor Analysis

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Competitor Analysis

-identifying competitors
-assessing competitors
-selecting competitors to attack and avoid

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plays a major role in keeping your company competitive in
the market

identifying competitors

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Identifying competitors from:

Industry POV
Market POV

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Competitors have the target market but
differ in products/services that they offer.

Market POV

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Competitors have the same product/service
and target market inside the same category

Industry POV

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Types of Competitors

-Direct
-Indirect
-Replacement

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This type of competitor offers the same products/services as your business.

Direct Competitors

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This type of competitor inclined with your category but offers different products/services to solve the same problem.

Indirect Competitors

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This type of competitor offers alternatives products/services from you offer to solve the same problem

Replacement Competitors

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Ways to Identify Competitors

Market research
Keyword research
Analysing google search (product/service + location)
Monitoring social media conversations
Customer feedbacks

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a company can identify its strengths and weaknesses relative to its rivals, and develop strategies to improve its competitive position.

Assessing competitors

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The company wants to
know the relative importance that a
competitor places on current
profitability, market share growth, cash
flow, technological leadership, service
leadership, and other goals.

Competitor’s Objectives

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The company needs to look at all the
dimensions that identify strategic
groups within the industry.

Competitor’s Strategies

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As a first step, companies can gather data on
each competitor’s goals, strategies, and
performance over the past year.

Competitor’s Strengths &
Weaknesses

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The company needs to look at all the dimensions
that identify strategic groups within the industry
company wants to know: What will our
competitors do?

Estimating Competitor’s
Reactions

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The key to gaining competitive
advantage is to examine how a
company’s offer compares to that
of its major competitors in each
customer segment.

Customer Value Analysis

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plays by the rules in the
industry.

Good Competitor

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try to buy shares rather than
earn, take large risks, and play by their own rules.

Bad Competitor

make the competition
irrelevant

Blue-Ocean Strategy

beat the competition

Red-Ocean Strategy

Having identified and evaluated its major
competitors, a company now must design broad
marketing strategies by which it can gain
competitive advantage.

Competitive
Strategies

refers to a unique advantage that a
company has over its competitors, which
enables it to outperform them over a long
period of time.

sustainable competitive advantage

company works hard to achieve the lowest production and distribution costs.

Overall Cost Leadership

The Cost Leadership strategy can be implemented in various ways

1 EFFICIENT OPERATIONS 2 ECONOMIES OF SCALE 3 LOW-COST INPUTS 4 COST-EFFECTIVE MARKETING 5 MINIMAL PRODUCT FEATURES

company concentrates on creating a highly differentiated product line and marketing program so that it comes across as the class leader in the industry.

Differentiation

The Differentiation strategy can be implemented by

1 MARKET RESEARCH 2 INNOVATION AND DEVELOPMENT 3 ESTABLISHING BRAND REPUTATION

A company focuses its effort on serving a few market segments well rather than going after the whole market.

Focus

A company aims to become the lowest-cost producer in a specific market or industry segment.

COST FOCUS

A company aims to differentiate its products or services from competitors in a particular market or industry segment.

DIFFERENTIATION FOCUS

The __________ allows businesses to: Achieve higher profit margins by serving a specific niche or target market with a unique and targeted product or service offering. Develop a deep understanding of the target market's needs and preferences, which can help them create more effective marketing campaigns and build stronger customer relationships. Build a reputation as a specialist in a particular market or industry segment, which can lead to greater customer loyalty and repeat business.

Focus strategy

concept that describes a business strategy that tries to achieve both low cost and differentiation at the same time but fails to excel in either of them.

Middle-of-the-roaders

framework for businesses to gain a competitive advantage in their industry by identifying their core strengths and leveraging them in a way that is most appealing to their target customers.

Treacy and Wiersema's competitive marketing strategies

The company provides superior value by leading its industry in price and convenience.

Operational Excellence

The company provides superior value by offering a continuous stream of leading-edge products or services.

Product Leadership

The company provides superior value by precisely segmenting its markets and tailoring its products or services to exactly match the needs of targeted customers.

Customer Intimacy

a marketing strategy that refers to how a marketing team can differentiate a company from its competitors.

Competitive positioning

a marketing strategy that refers to how a marketing team can differentiate a company from its competitors.

Competitive positioning

DIFFERENT COMPETITIVE POSITIONS

MARKET LEADER Market Challenger Market Follower Market Nicher

Market Leader Strategies

EXPAND TOTAL DEMAND PROTECT THEIR CURRENT MARKET EXPAND MARKET SHARE

Market Challenger Strategies

FULL FRONTAL ATTACK INDIRECT ATTACK

By challenging the market leader and other competitors in an aggressive bid for more market share (market challengers)

FULL FRONTAL ATTACK

By carving out toeholds using tactics that established leaders have trouble responding to or choose to ignore.

INDIRECT ATTACK

Market Nicher Strategies

BY SPECIALIZING IN SERVING ONE TYPE OF NICHE SUCH AS CUSTOMER, MARKET, QUALITYPRICE, SERVICE. MULTIPLE NICHING

A _______ prioritizes the needs and wants of its customers above all else.

customer-oriented company

A _______ prioritizes the needs and wants of its customers above all else.

customer-oriented company

a _________ is primarily focused on beating its rivals, often at the expense of customer satisfaction.

competitor-oriented company

aims to find a balance between customer and competitor orientations.

market-oriented company