Group 5: Creating Competitive Advantage Flashcards
Steps in analyzing competitors
-identifying competitors
-assessing competitors
-selecting competitors to attack and avoid
Types of Competitors
Direct Competitors
Indirect Competitors
Potential Competitors
Future Competitors
Replacement Competitors
Competitors that offer the same product/services to your customers
Direct competitors
Businesses that are in the same category, but they sell
different products and services than you or target a different market.
Indirect competitors
Competitors who do the same thing that you and
target the same kinds of customers but aren’t selling in your market area and
aren’t likely to do so.
Potential competitors
Competitors that are ready
and likely to enter your market.
Future competitors
Competitors who provide an alternative to the services
that your product is trying to solve.
replacement competitors
Refers to competitors within the same industry.
INDUSTRY POINT OF VIEW
Refers competitors as companies that are trying to satisfy the same
customer need or build relationships with the same customer group.
MARKET POINT OF VIEW
Steps in assessing competitors
- Determining competitors’ objectives
- Identifying competitors’ strategies
- Assessing competitors’
strengths and weaknesses - Estimating competitors’ reactions
Approaches to marketing strategy
Entrepreneurial Marketing
Formulated marketing
Intrapreneurial marketing
The proactive identification and exploitation of
opportunities for acquiring and retaining profitable customers through innovative approaches to risk
management, resource leveraging, and value creation.
Entrepreneurial Marketing
The development of formal marketing
strategies. This involves considering advertising, employing dozens of salespeople,
and carrying on sophisticated marketing research that relies on self analysis and
consumer monitoring.
Formulated marketing
It introduces the concept of Intrapreneurship
pertaining to a system that allows an employee to act like an entrepreneur within
a company or other organization.
Intrapreneurial marketing
BASIC COMPETITIVE STRATEGIES
Cost leadership
Differentiation strategy
Focus strategy
A competitive strategy wherein the firm works hard to
achieve the lowest production and distribution costs and can therefore ask the
lowest prices. Low costs let the company price lower than its competitors and win
a large market share.
Cost leadership strategy
A strategy wherein the 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 strategy
A strategy where the company focuses its effort on serving a few
market segments well rather than going after the whole market.
Focus strategy
Two marketing consultants, _________, offer a more
customer-centered classification of competitive marketing strategies. They suggest that
companies gain leadership positions by delivering superior value to their customers.
Michael Treacy and Fred Wiersema
Marketing strategies that focuses on delivering
superior customer value to gain competitive advantage.
Value disciplines
Value disciplines:
Operational excellence
Customer intimacy
Product leadership
Discipline that focuses on providing customers
with reliable products or services at competitive prices and delivered with minimal
difficulty or inconvenience.
Operational excellence
A strategy that provides superior value by precisely segmenting its
markets and tailoring its products or services to exactly match the needs of targeted
customers. It specializes in satisfying unique customer needs through a close relationship
with and intimate knowledge of the customer.
Customer intimacy
A strategy that provides superior value by offering customers
leading-edge products and services that consistently enhance the customer’s
use or application of the product.
Product leadership
A marketing
strategy that refers to how a marketing
team can differentiate a company from its
competitors.
Competitive positioning
Brands that are first-to-market
Pioneer brands
The leader of the
market where the brand exists
Market leader
A Competitor that wants to aggressively steal market share from
the market leader, and invests time and money into finding differentiators and creating
marketing programs that enable the brand to exploit opportunities whenever they arise.
Market Challenger
Market Challenger Strategies
Frontal Attack
Flanking Attack
Encirclement Attack
Bypass Attack
Guerrilla warfare
The challenger attempts to match the market leader’s efforts across
the full range of products, attacking the leader’s strengths rather than its weaknesses.
Frontal Attack
The market challenger concentrates on the leader’s weaknesses
rather than its strengths.
Flanking Attack
Involves attacking from several directions at once. This strategy requires the market challenger to have more resources than the defender,
so it usually only works well when entering a foreign market.
Encirclement Attack
The market challenger attempts to bypass the market leader entirely
and targets new markets.This might mean entering foreign markets that the competitor has not yet targeted, or it
might mean using new technologies to approach new customer groups.
Bypass Attack
A competitor that effectively
rides on the market leader’s coattails while positioning its brand just far enough away
from the market leader to be different.
Market Follower
Types of market follower
Counterfeiter
Cloner
Imitator
Adaptor
Followers that manufacture a slightly different copy of the
original product and sell it in the market as original. It usually falls under the
category of stealing and thieving and happens in the black market.
Counterfeiter
Followers create
the same, but slightly subtle and different product. However, it also means that you take
advantage of the top brands and offering the same product as theirs.
Cloner
They take
advantage of the marketing and branding work of the market leader and offer the same
product as theirs at a lower price.
Imitator
Follows the strategy of white-collared market followers, adopting the best quality features of each others’ brands and bring a new style
to the market.
Adaptor
Typically smaller players and smaller
companies that can’t effectively compete against the market leader but can succeed
in a specific area and with a specific audience by focusing on a specific differentiator
aligned with the niche.
Market Nicher
