Week 5: Competitor Risk

Question 1

What is a fair process?

Answer 1

leadership becomes widely shared (this is not easy)

Question 2

What are the elements of a fair process?

Answer 2

▪ Consistency of procedure
▪ Transparency
▪ Engagement of those affected
▪ Changeability
▪ Ethical process

Question 3

What is competitor risk?

Answer 3

The risk that competitive forces will prevent you from
achieving a goal. It is often associated with the risk of
declining business revenue or margins due to the actions of a competitor.

Question 4

The strategic square

Answer 4

What sort of attacks should the company be the most worried about, and where will they come from?
- Defensive
- Offensive
- Flanking
- Guerrilla

Question 5

What are winning behaviors

Answer 5

The Five Killer Strategies for Competition

Question 6

Five killer strategies for competition - The Manifesto

Answer 6

• Focus (relentlessly on competitive advantage)
• Strive (for “extreme” competitive advantage)
• Avoid (attacking directly)
• Exploit (your employees’ will to win)
• Know (the legal/social caution zone)

Question 7

Steps to Ethical Decision making

Answer 7

1. Stop and think
2. Clarify goals
3. Determine facts
4. Develop options
5. Consider consequences
6. Choose
7. Monitor and Modify

Question 8

The Fair Process Cycle

Answer 8

1. Seeing & Engaging & Framing
2. Exploring & Eliminating Options
3. Deciding & Explaining & Setting Expectations
4. Acting & Executing
5. Evaluating & Learning & Adapting
   This is consistent through:
   - Communication
   - Clarity
   - Consistency
   - Changeability
   - Culture

Question 9

Examples of competitor risk

Answer 9

▪ Pricing
▪ Innovation
▪ Location
▪ Resources
▪ Promotions
▪ Distribution
▪ Intellectual Property

Question 10

Types of Companies That Benefit From The Four Strategic Moves (strategic square attacks)

Answer 10

▪ Number 1 companies come down the mountain to
stop competitive attacks, i.e., leaders are fighting
a defensive marketing war

▪ Number 2 companies go through the mountain,
i.e., they are fighting an offensive marketing war.

▪ Smaller national companies go around the
mountain, i.e., they are fighting a flanking
marketing war.

▪ Small regional/local companies go under the
mountain, i.e., they are fighting a guerrilla
marketing war.

Question 11

The Manifesto of the Five Killer Strategies

Answer 11

Re-learn the fundamental behaviors of
winning

Question 12

Five Killer Strategies for Competition - Strategies

Answer 12

▪ Devastate (rivals’ profit sanctuaries)
▪ Imitate (copy best practices)
▪ Deceive (hide how well you’re doing; mislead the competition about your strategies)
▪ Unleash (massive and overwhelming force)
▪ Raise (competitors’ costs)

Question 13

Who should use Defensive Strategies

Answer 13

Only Market Leaders