to Marketing
Presentation on Competitor Advantages Presented To: Miss
Sadia
Presented By:
The Friends Group MBA 1st Morning
Group members Muhammad Haroon 10607 Farhan Adeel 10580 Farman Ali 10609 Muhammad Haroon 10618
Creating Competitive Advantages Competitor Analysis Competitive Strategies Balancing Customer and Competitor Orientation
Competitive Advantages Defination An advantage over competitors gained by
offering consumer greater value either Lower price or by Providing through, more benefits that Justify higher prices
Example
Competitor Analysis • The process of identifying key competitor • Assessing their objectives Strategies, strength & weaknesses & Reaction patterns • Selecting which competitors to attack or avoid
Identifying competitors • Companies identifying their competitors • Similar services • Same customer
Competitor Myopia • • • •
Short sightedness of any organization They focus only one product Companies must avoid it Customer want satisfaction
examples • Major competitors are
Sony
Assessing competitor Determining competitor objectives Monitoring various segments
New technology Growth share
Identifying Competitors’ Strategy • • • •
Features Product Quality Pricing policy Sales force strategy
Assessing competitor strength & weakness • What can our competitor do? • Gathering data • Bench marking
Bench marking • The process of comparing the companies product and processes to those of competitors leading firms in other industry way to improve quality and performance • Powerful tool for increasing a company’s competitiveness.
Estimating Competitors’ Reactions • • • •
What will our competitor do? Competitor objectives Competitor Strategies Competitor Strength & weakness
Selecting competitor to attack & avoid Strong or weak competitors • • • • •
Focus on several competitors Aim shots at weak competitors They have fewer resources Customer value analysis They should compete with strong competitors
Close or Distant Competitors • Compete with close competitor rather than distant competitors • They should compete with distant competitors not close • Wall mart & k mart
Good or Bad Competitors • Should support good competitors • Attack bad competitors • Good competitors play industry’s rules • Good competitor play by rules • Bad competitor break the rules
Designing a competitive intelligence system • • • • •
Company must design intelligence system Collect secondary data Each and every information Validity and reliability Weaknesses and strength
Competitive Strategies Approaches to Marketing Strategy Define different strategies
Large formal strategies HONDA
TOYOTA
STAGES OF MAREKET APPROACHES Entrepreneurial Marketing Formulated Marketing Intrepreneurial Marketing
Entrepreneurial Marketing Knock on every door to gain attention. No need of Advertisement. Example : Milk Made
Formulated Marketing Small Companies. Involvement of sales people. Example : SHAN & NATIONAL
Intrepreneurial Marketing Large & small companies. Customer Centered Approach.
Basic Competitive Strategies Six main Strategies Over all Cost Leadership Differentiation Focus Operational Excellence Customer Intimacy Product Leadership
Over All Cost Leadership Here the company show hard work to decrease the production & distribution cost. Low cost & low price then its competitor & win a large market share.
Differentiation Here the company concentrate on creating a highly differentiated product line & marketing program.
Example: Nokia
Focus Here the company focuses its effort on serving a few market segments well rather than going after the whole market.
Example : Ferrari & Auston Martin
Operational Excellence Companies provides superior value Reduce cost Customer wants quality product & reliable goods cheaply& easily Example :
Customer Intimacy Company provides superior value by precisely segments. It Builds detailed customer Database. Example : Rolex watches
Product Leadership Here company provides superior goods with best quality &in low price. it aims to make its own & competing products obsolete. Example :
Competitive Position • • • •
Market Leader Market Challenger Market Follower Market Nicher
Market leader strategies • Expend total market • Protect market share • Expend market share
Expend total market Expend market by • Developing new users • Discovering and promoting new uses • Convincing people for more usage
Protecting market share • • • •
What to do for market position Avoid weakness Fulfill value promise Constant price Strong customer relationship
Expanding Market Share Increasing sales • Improve profitability • Close customer relationship • Giving high quality product & services •
Market Challenger Strategies To Keep Market share
Market Challenger Strategies To Put small companies out of business How to attack on competitor?
Market Follower Strategies
Good product coppied by leader Copy of the leader Keep your customer in mind
Market Nicher Strategies Specialize in serving customer
Market Nicher Strategies
Why niching is profitable Specific customers
Balancing Customer and Competitor Orientations
competitor customer
Competitor Centered Company Definition:
“A company whose moves are mainly based on competitor actions and reactions”. Track competitor Find his strategies Find his weakness
Customer Centered Company Defination: “A company that focuses on customer developments in designing its marketing strategies and on delivering superior value to its target customers”. Focus on Customer Development Customer need Superior value
Market Centered Company Defination: “A company that pays balanced attention to both customers and competitors in designing its marketing strategies”. Watch both customer and competitors
Competitor centered
Customer centered No
Yes
No
Yes
Product orientation
Customer orientation
Competitor orientation
Market orientation
Questions?
Thanks
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