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Competitive Advantages UI 061019

The document discusses competitive analysis and strategies. It defines competitive analysis as identifying key competitors, assessing their objectives, strategies, strengths, and weaknesses. It also discusses determining competitors' objectives, identifying their strategies, assessing their strengths and weaknesses using tools like benchmarking and competitive profiling matrices. Porter's Five Forces framework and its use to analyze industry competitive forces and shape organizational strategy is explained. Different competitive strategies like overall cost leadership, differentiation, and focus are also outlined.

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Fenty Kurniati
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22 views53 pages

Competitive Advantages UI 061019

The document discusses competitive analysis and strategies. It defines competitive analysis as identifying key competitors, assessing their objectives, strategies, strengths, and weaknesses. It also discusses determining competitors' objectives, identifying their strategies, assessing their strengths and weaknesses using tools like benchmarking and competitive profiling matrices. Porter's Five Forces framework and its use to analyze industry competitive forces and shape organizational strategy is explained. Different competitive strategies like overall cost leadership, differentiation, and focus are also outlined.

Uploaded by

Fenty Kurniati
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Competitive Analysis

by : Dr. Zainal Arifin


Competitive 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

Smartphone
competition in Indonesia
230-year-old
Encyclopedia
Britannica viewed
itself as competing
with your
publishers of
printed
encyclopedias.
Big mistake!
Its real competitors
were software
encyclopedias and
the Internet.
Competition Mapping
Direct - Indirect
Determining competitors’ objectives
Identifying competitors’ strategies
Strategic groups
Assessing competitors’ strengths and
weaknesses
Benchmarking
Estimating competitors’ reactions
Critical Success Factors
Competitive Profile Matrix (CPM)
Furniture and Home Stores Profile Matrix
Social Media Web Profile Matrix
Strong or weak
competitors
Customer value
analysis
Close or distant
competitors
Most companies
compete against
close competitors
“Good” or “Bad”
competitors
Porter's Five Forces Framework
A tool for analyzing competition of a business. It draws
from industrial organization (IO) economics to derive five
forces that determine the competitive intensity and,
therefore, the attractiveness (or lack of it) of an industry in
terms of its profitability.
Using the tool:
We now understand that Porter’s
five forces framework is used to
analyze industry’s competitive forces
and to shape organization’s strategy
according to the results of the
analysis.
But how to use this tool?
We have identified the following
steps:
Step 1. Gather the information on
each of the five forces
Step 2. Analyze the results and
display them on a diagram
Step 3. Formulate strategies based
on the conclusions
Example:
This is Porter’s five forces analysis example for an automotive
industry.
Automotive Business is Attractive or Not?
An advantage over competitors
gained by offering consumers greater value than
competitors offer

Competitive Advantage
“Out-In” vs. “In-Out”
The chart [1] below shows how industry, firm and other effects explain
firm’s performance. From ~30% to ~45% of superior organizational
performance can be explained by firm effects (resource based view) and
~20% by industry effects (I/O view). This indicates that the best approach
is to look into both external and internal factors and combine both views
to achieve and sustain competitive advantage.
Basic Winning Competitive
Strategies: Porter

Overall cost leadership


Lowest production and distribution costs
Differentiation
Creating a highly differentiated product line
and marketing program
Focus
Effort is focused on serving a few market segments
PREMIUM BRANDING “POSITIONING”
HYPERCOMPETITIVE BEHAVIOR
IN THE COST & QUALITY ARENA

46
HYPERCOMPETITIVE BEHAVIOR IN
THE TIMING & KNOW-HOW ARENA

47
HYPERCOMPETITIVE BEHAVIOR IN
THE STRONGHOLD/INVASION ARENA

48
HYPERCOMPETITIVE BEHAVIOR IN
THE DEEP POCKETS ARENA

”Palu Gada “ :
60.000 alat-alat industri
dan mesin dari 300
merk!

49
The dynamics of strategic
maneuvering amongst
competitors

Technology

Advantages cannot be sustained

Building temporary advantages through market disruption


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