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Competitor Analysis Class MBA PT

The document discusses analyzing competitors through competitive analysis. It describes identifying competitors, assessing their objectives, strategies, strengths and weaknesses. The steps in analyzing competitors are outlined, including determining competitors' objectives and strategies. Competitive strategies like those from Porter on cost leadership, differentiation and focus are covered. The document also discusses competitive positions as market leaders, challengers, followers or nichers and balancing customer and competitor orientations.

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227 views21 pages

Competitor Analysis Class MBA PT

The document discusses analyzing competitors through competitive analysis. It describes identifying competitors, assessing their objectives, strategies, strengths and weaknesses. The steps in analyzing competitors are outlined, including determining competitors' objectives and strategies. Competitive strategies like those from Porter on cost leadership, differentiation and focus are covered. The document also discusses competitive positions as market leaders, challengers, followers or nichers and balancing customer and competitor orientations.

Uploaded by

mail2joe7
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Competitor Analysis

Objectives

Learn how to understand competitors as


well as customers via competitor
analysis.
Learn the fundamentals of competitive
marketing strategies based on creating
value for customers.
Realize the need for balancing customer
and competitor organizations in order to
become a truly market-centered
organization.
18- 2
Intel

Has dominated the Heavy focus on


chip industry product and
Success is directly advertising innovation
related to Intel’s and R&D investments
competitive Changing market
strategy needs have
Strategy focuses challenged Intel to
on superior value adapt
and product Intel is capitalizing on
leadership the Internet now
18- 3
Definition

Competitive Advantage
An advantage
over competitors
gained by offering
consumers greater
value than
competitors offer.

18- 4
Definition

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.

18- 5
S teps in Ana lyz ing Competitors

18- 6
Competitor Analysis

Steps in the Firms face a wide


range of competition
Process:
Be careful to avoid
Identifying “competitor myopia”
Competitors Methods of
Assessing identifying
Competitors competitors:
Selecting  Industry point-of-view
Competitors to  Market point-of-view
 Competitor maps
Attack or Avoid
can help
18- 7
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.
18- 8
Competitor Analysis
Determining
Steps in the competitors’ objectives
Process: Identifying competitors’
strategies
Identifying  Strategic groups
Competitors Assessing competitors’
Assessing strengths and
Competitors weaknesses
 Benchmarking
Selecting
Estimating competitors’
Competitors to reactions
Attack or Avoid

18- 9
Competitor Analysis
Strong or weak
Steps in the competitors
Process:  Customer value analysis
Close or distant
Identifying competitors
Competitors  Most companies compete
against close competitors
Assessing
Competitors “Good” or “Bad”
competitors
Selecting  The existence of
Competitors to competitors offers several
strategic benefits
Attack or Avoid

18- 10
Competitive Strategies
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 18- 13


Competitive Strategies

Basic Competitive Strategies:


Value Disciplines
 Operational excellence
 Superior value via price and convenience
 Customer intimacy
 Superior value by means of building
strong relationships with buyers and
satisfying needs
 Product leadership
 Superior value via product innovation

18- 12
Hypothetical
Market Structure

18- 13
Competitive Strategy
Expanding the total
Competitive demand
Positions  Finding new users
 Discovering and
promoting new product
Market Leader uses
 Encouraging greater
Market product usage
Challenger Protecting market share
 Many considerations
Market  Continuous innovation
Follower Expanding market share
 Profitability rises with
Market Nicher market share

18- 14
Competitive Strategy

WD-40 has a knack


for developing new
uses for its product.
What other brands
have adopted a
similar strategy?

WD40

18- 15
Competitive Strategy
Option 1: challenge the
Competitive market leader
Positions  High-risk but high-gain
 Sustainable competitive
Market Leader advantage over the leader
is key to success
Market Option 2: challenge firms
Challenger of the same size, smaller
size or challenge
Market regional or local firms
Follower Full frontal vs. indirect
attacks
Market Nicher
18- 16
Pepsi is an
example of
market
challenger
that has
chosen to use
a full frontal
attack

18- 17
Competitive Strategy

Competitive Follow the market


leader
Positions
 Focus is on improving
profit instead of
Market Leader market share
Market  Many advantages:
Challenger  Learn from the
market leader’s
Market experience
Follower  Copy or improve on
the leader’s offerings
Market Nicher  Strong profitability

18- 18
Dial Corporation
successfully
uses a market
follower strategy

18- 19
Competitive Strategy

Competitive Serving market


niches means
Positions targeting
subsegments
Market Leader Good strategy for
Market small firms with
limited resources
Challenger Offers high margins
Market Specialization is key
Follower  By market, customer,
product, or marketing
Market Nicher mix lines
18- 20
Ba la ncing C ustome r a nd
Competitor Orientations

Companies can become so


competitor centered that they
lose their customer focus.
Types of companies:
Competitor-centered companies
Customer-centered companies
Market-centered companies

18- 21

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