Group 5: Creating Competitive Advantage Flashcards
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
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
Competitor Analysis
-identifying competitors
-assessing competitors
-selecting competitors to attack and avoid
plays a major role in keeping your company competitive in
the market
identifying competitors
Identifying competitors from:
- Industry POV
- Market POV
Competitors have the target market but
differ in products/services that they offer.
Market POV
Competitors have the same product/service
and target market inside the same category
Industry POV
Types of Competitors
-Direct
-Indirect
-Replacement
This type of competitor offers the same products/services as your business.
Direct Competitors
This type of competitor inclined with your category but offers different products/services to solve the same problem.
Indirect Competitors
This type of competitor offers alternatives products/services from you offer to solve the same problem
Replacement Competitors
Ways to Identify Competitors
- Market research
- Keyword research
- Analysing google search (product/service + location)
- Monitoring social media conversations
- Customer feedbacks
a company can identify its strengths and weaknesses relative to its rivals, and develop strategies to improve its competitive position.
Assessing competitors
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
The company needs to look at all the
dimensions that identify strategic
groups within the industry.
Competitor’s Strategies
As a first step, companies can gather data on
each competitor’s goals, strategies, and
performance over the past year.
Competitor’s Strengths &
Weaknesses
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
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
plays by the rules in the
industry.
Good Competitor
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
