Five Forces Determining Segment Structural Attractiveness

Analysis of Competition & Market StrategiesCompetitive advantages require delivering more value and satisfaction to target consumers than competitors doCompetitive marketing strategies are how companies analyze their competitors and develop value-based strategies for profitable customer relationshipsCreating Competitive Advantage2Competitor analysis is the process of identifying, assessing, and selecting key competitorsCompetitor Analysis

3Competitor AnalysisCompetitors can include:All firms making the same product or class of productsAll firms making products that supply the same serviceAll firms competing for the same consumer

Identifying Competitors

4Five Forces Determining Segment Structural Attractiveness

5Industry Concept of CompetitionNumber of sellers and degree of differentiationEntry, mobility, and exit barriersCost structureDegree of vertical integrationDegree of globalization6A Competitors Expansion Plans

7Customer Ratings of Competitors on Key Success Factors

8Strengths and WeaknessesShare of marketShare of mindShare of heart9Competitor AnalysisStrong or weak competitorsClose or distant competitorsGood or bad competitorsSelecting Competitors to Attack and Avoid

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Hypothetical Market Structure10%MarketNichers20%MarketFollower30%MarketChallenger40%MarketLeader11Competitive StrategiesCompetitive Positions

12Competitive StrategiesMarket leader is the firm with the largest market share and leads the market price changes, product innovations, distribution coverage, and promotion spendingMarket challengers are firms fighting to increase market shareMarket followers are firms that want to hold onto their market share Market nichers are firms that serve small market segments not being pursued by other firms

Competitive Positions

13Competitive StrategiesExpand total demand by developing:New usersNew usesMore usage of its products

Market Leader StrategiesExpanding Total Demand

14Six Types of Defense Strategies

15Market Challenger StrategiesDefine the strategic objective and opponentsChoose a general attack strategyChoose a specific attack strategy16General Attack StrategiesFrontal AttackEncirclement AttackBypass AttackFlank AttackGuerrilla Warfare17Pepsi buys Gatorade in a Bypass Strategy

18Specific Attack StrategiesPrice discountsLower-priced goodsValue-priced goodsPrestige goodsProduct proliferationProduct innovationImproved servicesDistribution innovationManufacturing-cost reductionIntensive advertising promotion19Market Follower StrategiesCounterfeiterClonerImitatorAdapter20Niche Specialist RolesEnd-User SpecialistVertical-Level SpecialistCustomer-Size SpecialistSpecific-Customer SpecialistGeographic SpecialistProduct-Line SpecialistJob-Shop SpecialistQuality-Price SpecialistService-SpecialistChannel Specialist21Balancing OrientationsCompetitor-CenteredCustomer-Centered22