Creating Competitive Advantage Competitive advantage: an ...
10/13/2014 Creating Competitive Advantage Competitive advantage: an advantage over competitors gained by offering consumers greater value than competitors do Competitor analysis: the process of identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid Competitive marketing strategies: strategies that strongly position the company against competitors and give the company the strongest possible strategic advantage Competitor Analysis Identifying Competitors Assessing Competitors Determining Competitors Objectives Identifying Competitors' Strategies Strategic group: a group of firms in an industry following the same or a similar strategy Assessing Competitors Strengths and Weaknesses Benchmarking: the process of comparing the company's products and processes to those of competitors or leading firms in other industries to identify best practices and find ways to improve quality and performance Estimating Competitor's Reactions Selecting Competitors to Attack and Avoid Strong or Weak Competitors Customer value analysis: an analysis conducted to determine the benefits that target customers value and how they rate the relative value of various competitors' offers Close or Distant Competitors Good or Bad Competitors Finding Uncontested Market Spaces
Competitive Strategies
Approaches to Marketing Strategy Approaches to marketing strategy and practice often pass through three stages: Entrepreneurial marketing Formulated marketing Intrepreneurial marketing Basic Competitive Strategies Three winning strategies: Overall cost leadership Differentiation Focus Value disciplines Operational excellence Customer intimacy Product leadership Competitive Positions Market leader: the firm in an industry with the largest market share Market challenger: a runnerup firm that is fighting hard to increase its market share in an industry Market follower: a runnerup firm that wants to hold its share in an industry without rocking the boat Market nicher: a firm that serves small segments that the other firms in an industry overlook or ignore Market Leader Strategies Expanding Total Demand Protecting Market Share Expanding Market Share Market Challenger Strategies
Full frontal attack Indirect attack Market Follower Strategies Follow closely Follow at a distance Market Nicher Strategies By customer, market, quality price, service Multiple niching Balancing Customer and Competitor Orientations Competitorcentered company: a company whose moves are mainly based on competitor's actions and reactions Customercentred company: a company that focuses on customer developments in designing its marketing strategies and delivering superior value to its target customers Marketcentered company: a company that pays balanced attention to both customers and competitors in designing its marketing strategies
Competitive Strategies
Approaches to Marketing Strategy Approaches to marketing strategy and practice often pass through three stages: Entrepreneurial marketing Formulated marketing Intrepreneurial marketing Basic Competitive Strategies Three winning strategies: Overall cost leadership Differentiation Focus Value disciplines Operational excellence Customer intimacy Product leadership Competitive Positions Market leader: the firm in an industry with the largest market share Market challenger: a runnerup firm that is fighting hard to increase its market share in an industry Market follower: a runnerup firm that wants to hold its share in an industry without rocking the boat Market nicher: a firm that serves small segments that the other firms in an industry overlook or ignore Market Leader Strategies Expanding Total Demand Protecting Market Share Expanding Market Share Market Challenger Strategies
Full frontal attack Indirect attack Market Follower Strategies Follow closely Follow at a distance Market Nicher Strategies By customer, market, quality price, service Multiple niching Balancing Customer and Competitor Orientations Competitorcentered company: a company whose moves are mainly based on competitor's actions and reactions Customercentred company: a company that focuses on customer developments in designing its marketing strategies and delivering superior value to its target customers Marketcentered company: a company that pays balanced attention to both customers and competitors in designing its marketing strategies
