Lesson 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 analysis
__________ competitors plays a major role in keeping your company competitive in the market.
Identifying
Enumerate the 3 types of competitors
- Direct Competitor
- Indirect competitor
- Replacement competitor
This type of competitor offers the same products/services as your business.
Direct competitor
This type of competitor is inclined with your category but offers different products/services to solve the same problem.
Indirect competitor
This type of competitor offers alternatives products/services from you offer to solve the same problem
Replacement competitor
Enumerate 5 ways to identify competitors
- Market research
- keyword research
- analyzing google search
- monitoring social media conversations
- customer feedbacks
By _____________ competitors, a company can identify its strengths and weaknesses relative to its rivals, and develop strategies to improve its competitive position.
assessing
STRONG OR WEAK COMPETITORS
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.
True or false?
True
CLOSE OR DISTANT COMPETITORS
Most companies will compete with close competitors that resemble them most rather than distant competitors
True or false?
True
GOOD OR BAD COMPETITORS
A company needs and benefits from competition. The existence of competitions results in strategic benefits
_________________ - plays by the rules in the industry.
_________________ - try to buy shares rather than earn, take large risks, and play by their own rules.
Good Competitor, Bad Competitor
FINDING UNCONTESTED MARKET SPACES
Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces.
_____________________ - make the competition irrelevant.
_____________ - beat the competition.
Blue-Ocean Strategy, Red Ocean Strategy
Enumerate the Michael Porter’s 3 basic competitive strategies
- Overall cost leadership
- Differentiation
- Focus
A company works hard to achieve the lowest production and distribution costs.
Overall cost leadership
A 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
A company focuses its effort on serving a few market segments well rather than going after the whole market.
Focus
Enumerate 2 focus strategy
- Cost focus
- Differentiation 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
_________________________________________________________________________________ are a 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 strategies
Enumerate Treacy and Wiersema’s 3 competitive strategies
- Operational Excellence (best performance)
- Product Leadership (best product)
- Customer Intimacy (best service)
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
__________________________ is a marketing strategy that refers to how a marketing team can differentiate a company from its competitors.
Competitive positioning
Enumerate 4 different competitive positions
- Market leader
- Market challenger
- Market follower
- Market nicher
______________ is the firm with the largest market share.
Market Leader
______________ are firms fighting to increase market share.
Market Challengers
_________________ are firms that want to hold on to their market share.
Market Followers
_______________ are firms that serve small market segments not being pursued or overlooked by other firms.
Market Nichers
Enumerate 3 types of company
- Competitor-centered company
- Customer-centered company
- Market-centered company
A __________-centered company is primarily focused on beating its rivals.
competitor
A _____________-centered company is primarily focused on meeting the needs and wants of its customers
customer
A _____________-centered company balances both customer and competitor orientations.
market
