Chapter 11 competitive dynamics

Chapter 11 Competitive Dynamics

By: Richelle Anne Mae D. Sayenga

5 key points.

#LeadFollowAndChallengeTheMarket #MarketsChange #WhereAreYou #FindANiche #Innovate

#LeadFollowAndChallengeTheMarket

• Lead the market – A market leader has the largest market share, usually leads in price changes, product introductions etc. To simply put it, “You become the first product that comes to mind”.

#LeadFollowAndChallengeTheMarket

• Follow the market – A firm must become flexible. A firm must also consider current trends in the market. In that way, they are able to identify demand, and study and find ways on how remain as market leaders.

#LeadFollowAndChallengeTheMarket

• Challenge the market – After knowing the trends, a firm must then find ways to innovate with regards to adopting to changes in market trends. The main goal here is to eventually “Beat The Market”

#MarketsChange• Firms reformulate their market strategies several times.• Products, customer preference and brands change over time.

Marketers must also respond accordingly.• Differentiate and focus less on the abstract goal, of rising above

competitive clutter and focus more on “openings left/overlooked by value players’ business models.

#WhereAreYou• Do research. Know your market share, your customers, and most

importantly, your competitors.• Defend your market. • While trying to expand total market size, the firm must also be ACTIVE in

defending its business models.• Marketers need to protect areas where their business model give other

companies room to maneuver.

• Find your customers• Every market has the potential to attract buyers who are unaware of the

product, are resisting because of uncertainty about the product.

#FindANiche

• An alternative to being a “Market Follower” is becoming a leader in a small segment of a market.• Other firms normally avoid competition with large forms by targeting

small markets which are of no interest to the larger firms.

#Innovate

• Never stop doing research. • Know the needs of your customers.• Find ways to improve, not only on your product/service, but also ways

that customer’s lives can potentially improve when they use your product or acquire your services.• Innovate to “Beat the Market”

Important things to remember.

• Know where you are in the market• Know you customers and your competitors.• Establish your market share and protect it.• Continuously drive for innovation. • In innovation, it is important to consider the changes and benefits that your

product can provide to your customers.

• “Beat the Market”

Chapter 11 Competitive Dynamics

By: Richelle Anne Mae D. Sayenga