week 5 Flashcards
what is comptitive analysis
ide key competitors
assessing objective , stratefies , strength and weakness and reaction pattern and selecting which competitors to attack or avoid
what are commpetiitve marketing stratgies
strategies that strongly postion company against competitors and give it greatest possible competiive advantage
reactions patterns are how copetitors react to new competition what are the two options, i.e they can be
avoidant /agressive
this shows us what to attakc or avoid
before starting w competitive analyssi why is it useful to assess overall elvel of market commpetition
competitive strategies and advantage have hgigher significance in higly compemtitive marekts
threat of new entrat
how easy/difficult for new entrants to join/operate in the market
in threat of new entrants waht are the barrier to ntry 7
econ of sclae
product diffrentioation
capital requirements
switiching costs for customers
access to distriution channels
proprietary informatino and industry kowledge
government restrictions
woth econ of scale why is it hard
company w massive suply and distributio networks are harder to replicate - they can keep prices down and standardise quality
why is product diff a barier
harder toenter as lotal consuemrs and strong branding
why is accesing distribution a bi batrier
harder to sell
substitutes
what product are interchanable and or replaceable
what are hte types of substitues
perfect/direct
imperfect/indirect
what are the types of competition
price
performance
whatr are perefct . direct substititues give me an exmaple
pepsi and coke
easilly interchangeblae
miperfect substitutes
less direct competiton in mkt
perfom similat function but still signigfxant diff
e.g. contact lenses and lgasses
gaming pc and gamin laptop
high bargaing pwoer - 6 points
small number of large volume buyes
high csonuermm involvement (cautiouos decisoin makking and search for alternatives)
high proice sensitivity
low switiching cost for consumers
backwward inegratino
supply greater thna demand
low bargaining power - 3 points
no substitutes
demand > supply
high switching costs
what does having high braginai gpwoer allow
more influce market
if got small numebr of larg vol biyers what can i do
dictate terms
why is high conumer invovelment allow hihg buyer power
more expensive , the more ivlved and take time to looka tall optin - so less suceptible to quick amrekting tools
give example of low switiching cost
easy to switch , if dont loose beenfits but if been rakcing up loyalty [pinnts the momoent you switch loose benefits - hose are high switching csots
what is ackward itnegration
ic an make product myself
so whatever offered shiould be better time wise , csutomer serive wise etc
bargian pwoer of supleir - hig
small numer of suppluers serving large pool of industry comp
no subsitties for suppliers product
high csots of swithcing suppliers
industry is not an impomrtant custoemr of the suppluer group
supplieres products are essential to teh industry competitors products
forward integratino
nowhy does small number of suppliers serving alrge pool of indutry commpetior shelp give em high power
supplier can picka nd choose customer
why does no sub for suppleri product hep
all indsutry competitors want that suppleurs
hgigh switiching costs helps how
hard to switch so suppleurs can yuo that to negotioat for their benefit
industry not important customer of suppliers group
if supleur serving many inddsutrys and yuo small 0 you not a prioruty as if you drop em theyll b fine 0 loose bargaingf powetr
supplier got more power so comp higher as we competing doe suppliers
what is forwas integration
suplperi an o waht you doing and can put you out of mkt as they got rh beeenfit of producing compeoint
so whatever you are offercing can be overcome by me
alwasy increase cop in the market
rivalry inficators
compeiton for demand
comp for resources
level of indusry growth
price elasticy/sensitivity and price wars
advertising wars
lack of product differentiation
hgih exit barriers
what should you looka t lvel of indutry groeth with
threat of new entrants
explain why you should look at lvel of industry growth with threat of new entrants
if in growing matket but threat of ne entrants low then overall rivalty lower casue mor possilities for growth and notlikelt new entrant come in and take mkt share
but if in growing mkt and threat hgi - competiive as we may haev opps but all companies coming in sweeping theses opps , suppleir and peopel
price elasticy
cosuerms value cheaper product - price wats - tell tale sign of rival
what is a ell tale sign of rivalry
price wats
lack of product diferntiation
hig cop as easy to enter market
= lack of customer loyalty
lack of loyalty = shift easily
high exot barriers
needing hig invesment w also be mkt w high entry barrier
if operatin loss may not be able to leave as leaving more damagin so jeep oeratin in loss hopin to fix issues
if more eexpensive to elave , keeping unprotiable peopl ein rasies compeiton as they need to survive so do everything they can to survive now
