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Competitive Strategies

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40 views3 pages

Competitive Strategies

marketing assignment

Uploaded by

np mari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Competitive Strategies:

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Subhash C. Jain, a renowned scholar in marketing, offers a comprehensive
framework for understanding competitive strategies, which is aligned with the
perspectives of other reputable scholars like Michael Porter, Bruce Henderson,
and Derek Abell. Let's explore these different viewpoints:
Subhash C. Jain:
Jain emphasizes the importance of understanding the "three Cs":
 Customer: Defining the customer base, their needs, and wants.
Understanding what drives them, their buying behavior, and their desired
value proposition.
 Competition: Identifying key competitors, analyzing their strengths,
weaknesses, and current strategies. Predicting their future moves and
reactions to your actions.
 Company: Assessing the company’s resources, capabilities, and
vulnerabilities. Identifying the areas where the company has a competitive
edge and can create sustainable competitive advantage.
He further suggests several key principles for developing competitive
strategies:
 Emphasis on long-term implications: Strategies should not be short-
term tactics but rather long-term commitments that consider the changing
environment.
 Proper use of corporate inputs: Strategic decisions should incorporate
input from the company's culture, key stakeholders, and available
resources to ensure alignment.
 Recognizing varying product roles: Different products within the
portfolio may have different roles (e.g., stars, cash cows, question marks,
dogs).
 Importance of strategic intelligence: Gather information about the
competition, current and potential, to avoid being caught off-guard.
 Strategic use of marketing mix variables: The marketing mix
(product, price, promotion, place, and people) should be strategically
aligned with the chosen competitive strategy.
Michael Porter:
Porter introduced the Five Forces Model, which analyzes the competitive
landscape of an industry and helps determine the potential for profitability:
1. Threat of New Entrants: How easily can new competitors enter the
industry? Factors like economies of scale, government regulations, and
brand loyalty can create barriers.
2. Bargaining Power of Suppliers: How much control do suppliers have
over the industry? Factors like the availability of substitute materials and
the importance of the product to suppliers influence their power.
3. Bargaining Power of Buyers: How much control do buyers have over
the industry? Factors like the availability of substitute products, the
importance of the product to buyers, and the concentration of buyers
influence their power.
4. Threat of Substitutes: How likely are customers to switch to alternative
products or services? The more substitutes available, the more
competitive the industry.
5. Intensity of Rivalry: How aggressive is the competition within the
industry? Factors like market growth, exit barriers, and the concentration
of competitors influence rivalry.
Bruce Henderson:
Henderson developed the BCG Matrix (Boston Consulting Group), a tool for
analyzing a company’s product portfolio based on market growth rate and
relative market share. The matrix categorizes products into four quadrants:
 Stars: High market share in a high-growth market. Require heavy
investment to maintain their share.
 Cash Cows: High market share in a low-growth market. Generate
significant cash flow that can be used to fund other products.
 Question Marks: Low market share in a high-growth market. Require
considerable investment to achieve market dominance.
 Dogs: Low market share in a low-growth market. Typically generate little
cash flow and might be considered for divestment.
Derek Abell:
Abell proposed defining a business by three measures:
1. Scope: The breadth of the business (e.g., what market segments are
served).
2. Differentiation across segments: How are products/services
differentiated within different customer segments.
3. Differentiation across competitors: How are products/services
differentiated from those of competitors.
These measures help understand the company's strategic position and guide the
development of competitive strategies.
Synthesizing the Viewpoints
All of these scholars emphasize the importance of:
 Understanding the market: Knowing your customers, competitors, and
the overall industry dynamics.
 Developing a clear strategy: Defining your business, your competitive
advantage, and your objectives.
 Strategic use of resources: Allocating resources effectively to support
your chosen strategy and achieve your goals.
In Zimbabwe:
Given the challenges faced by businesses in Zimbabwe, a strong emphasis
on understanding the local market, fostering local partnerships, and
utilizing resources efficiently is paramount. Companies need to carefully
tailor their strategies to the specific needs and conditions of the Zimbabwean
market.

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