Chapter5 Dealing with
the competition
Locating Advantages
Introduc-
tion
Slides
Case
Questions
Readings
BACK
2
Strategic Objectives
Market Opportunity Analysis
Environ-
ment
Analysis
Consumer
Behavior
Analysis
Competition
Analysis
Market
Analysis
Market Segmentation
Targeting and Positioning
3
Kotler on Marketing
Poor firms ignore their competitors;
Average firms copy their competitors;
Winning firms lead their competitors.
Introduction
Coke and Pepsi
1.Identifying Competitors
2.Analyzing Competitors
3.Competitive Strategies
6
Industrial Competition
1,Identifying Competitors
Market Competition
7
Kodak,Fuji and Lucky in Digital Era
–Will Kodak Still Be the Leader of Image
Industry in New Era?
8
Industrial Competition,
--Industry attractiveness analysis
Number of Sellers & Degree of
Differentiation
Entry,Mobility,Exit barriers
Cost Structure
Degree of Vertical Integration
Degree of Globalization
9
Barriers and Profitability
Low,stable
returnsLow
High,stable
returnsHigh
Low
Low,risky
returns
High,risky
returns
High
En
try
Bar
rie
rs
Exit barriers
10
Market Concept of Competition
Competitor Map – Eastman Kodak
11
2,Analyzing Competitors
Competitor
Analysis
Objectives
Strengths
Weaknesses
Reaction
Patterns
Strategies
12
High
LowHigh
Low
Qu
ali
ty
Vertical Integration
Strategic Groups
Group A?Narrow line
Lower mfg,cost
Very high service?High price
Group D?Broad line
Medium mfg,cost
Low service?Low price
Group C?Moderate line
Medium mfg,cost
Medium service?Medium priceGroup B
Full line?Low mfg,cost
Good service?Medium price
13
Objectives,Competitor’s Expansion Plans
Markets
Pr
od
uc
ts
Individual
Users
Commercial
& Industrial Educational
Personal
Computers
Hardware
Accessories
Software
Dell
14
Strengths and Weaknesses
–Dominant（主宰型）
–Strong（强大型）
–Favorable（优势型）
–Tenable（防守型）
–Weak（虚弱型）
–Nonviable（难以生存型）
15
–Three Variables to Monitor,When Analyzing
Competitors
Share of market
Share of mind
Share of heart
Market Share Mind Share Heart Share
2000 2001 2002 2000 2001 2002 2000 2001 2002
Competitor A 50% 47% 44% 60% 58% 54% 45% 42% 39%
Competitor B 30 34 37 30 31 35 44 47 53
Competitor C 20 19 19 10 11 11 11 11 8
16
Share of
Market
Share of
Mind
Share of
Heart
Companies that make steady gains in mind share
and heart share will inevitably make gains in
market share and profitability.
Share of the
target Market
Name the first company
that comes to mind
in the industry
Name the company
from whom you prefer
to buy the product
17
Reaction Patterns
The Selective
Competitor
The Stochastic
Competitor
The Laid-back
Competitor The Tiger
Competitor
18
Designing The Competitive Intelligence System
Four Main Steps
– Setting Up the System
– Collecting the Data
– Evaluating and Analyzing the Data
– Disseminating Information and Responding
Benchmarking
19
–Classes of Competitors
Strong vs,Weak
Close vs,Distant
“Good” vs.,Bad”
20
40%
Market
leader
30%
Market
challenger
20%
Market
follower
Expand Market
Defend Market Share
Expand Market Share
Attack leader Imitate
10%
Market
nicher
Special-
ize
3,Designing Competitive Strategies
21
Market-Leader Strategies
–Expanding the Total Market
New Users
– Market-penetration strategy
– New-market segment strategy
– Geographical-expansion strategy
New Uses
More Usage
–Defending
Market Share
22
Defense Strategies
Attacker
(3) Preemptivedefense
(4) Counter
offensive
defense Defender
(1)Position
defense
(5)Mobile
defense
(2) Flank defense
(6) Contractiondefense
23
Case Study,Procter & Gamble(P263)
Customer knowledge
Long-term outlook
Product innovation
Quality strategy
Line-extension strategy
Brand-extension strategy
Multibrand strategy
24
Heavy advertising & media pioneer
Aggressive sales force
Effective sales promotion
Competitive toughness
Manufacturing efficiency & cost cutting
Brand-management system
Case Study,Procter & Gamble
25
Attack Strategies
Attacker Defender
(3) Encirclement attack
(4) Bypass attack
(2) Flank attack
(5) Guerilla attack
(1) Frontal attack
26
Specific Attack Strategies
Price-discount
Cheaper goods
Prestige goods
Product proliferation
Product innovation
Improved services
Distribution innovation
Manufacturing cost reduction
Intensive advertising promotion
27
“Nichemanship”
End-user specialist
Vertical-level specialist
Customer-size specialist
Specific-customer specialist
Geographic specialist
Product or product-line specialist
Product-feature specialist
Job-shop specialist
Quality-price specialist
Service specialist
Channel specialist
Case
VCD War
29
思考练习,
1、试述,五种力量模型,的意义和分析要点。
2、什么叫产业集中度？它有什么意义？
3、什么是价值链？它对企业营销有什么意义？
4、什么叫战略集团？
30
阅读任务,
1、教材第二篇第 3－ 6章，第 92－ 255页。
2、菲利普 ·科特勒,,营销管理,
（第九版）第二篇第 8章。
回总目录
31
生产与制造 市场营销 服务 利润技术标准提供商设备制造商手机制造商电信运营商应用服务商移动通信用户
32
Selecting Competitors
–Customer Value Analysis (CVA)
Identify the major attributes customers value.
Assess the quantitative importance of the different attributes.
Assess the companies’ and competitors’ performances on the
different customer values against their rated importance.
Examine how customers in a specific segment rate the
company’s performance against a specific major competitor on
an attribute-by-attribute basis.
Monitor customer values over time.
the competition
Locating Advantages
Introduc-
tion
Slides
Case
Questions
Readings
BACK
2
Strategic Objectives
Market Opportunity Analysis
Environ-
ment
Analysis
Consumer
Behavior
Analysis
Competition
Analysis
Market
Analysis
Market Segmentation
Targeting and Positioning
3
Kotler on Marketing
Poor firms ignore their competitors;
Average firms copy their competitors;
Winning firms lead their competitors.
Introduction
Coke and Pepsi
1.Identifying Competitors
2.Analyzing Competitors
3.Competitive Strategies
6
Industrial Competition
1,Identifying Competitors
Market Competition
7
Kodak,Fuji and Lucky in Digital Era
–Will Kodak Still Be the Leader of Image
Industry in New Era?
8
Industrial Competition,
--Industry attractiveness analysis
Number of Sellers & Degree of
Differentiation
Entry,Mobility,Exit barriers
Cost Structure
Degree of Vertical Integration
Degree of Globalization
9
Barriers and Profitability
Low,stable
returnsLow
High,stable
returnsHigh
Low
Low,risky
returns
High,risky
returns
High
En
try
Bar
rie
rs
Exit barriers
10
Market Concept of Competition
Competitor Map – Eastman Kodak
11
2,Analyzing Competitors
Competitor
Analysis
Objectives
Strengths
Weaknesses
Reaction
Patterns
Strategies
12
High
LowHigh
Low
Qu
ali
ty
Vertical Integration
Strategic Groups
Group A?Narrow line
Lower mfg,cost
Very high service?High price
Group D?Broad line
Medium mfg,cost
Low service?Low price
Group C?Moderate line
Medium mfg,cost
Medium service?Medium priceGroup B
Full line?Low mfg,cost
Good service?Medium price
13
Objectives,Competitor’s Expansion Plans
Markets
Pr
od
uc
ts
Individual
Users
Commercial
& Industrial Educational
Personal
Computers
Hardware
Accessories
Software
Dell
14
Strengths and Weaknesses
–Dominant（主宰型）
–Strong（强大型）
–Favorable（优势型）
–Tenable（防守型）
–Weak（虚弱型）
–Nonviable（难以生存型）
15
–Three Variables to Monitor,When Analyzing
Competitors
Share of market
Share of mind
Share of heart
Market Share Mind Share Heart Share
2000 2001 2002 2000 2001 2002 2000 2001 2002
Competitor A 50% 47% 44% 60% 58% 54% 45% 42% 39%
Competitor B 30 34 37 30 31 35 44 47 53
Competitor C 20 19 19 10 11 11 11 11 8
16
Share of
Market
Share of
Mind
Share of
Heart
Companies that make steady gains in mind share
and heart share will inevitably make gains in
market share and profitability.
Share of the
target Market
Name the first company
that comes to mind
in the industry
Name the company
from whom you prefer
to buy the product
17
Reaction Patterns
The Selective
Competitor
The Stochastic
Competitor
The Laid-back
Competitor The Tiger
Competitor
18
Designing The Competitive Intelligence System
Four Main Steps
– Setting Up the System
– Collecting the Data
– Evaluating and Analyzing the Data
– Disseminating Information and Responding
Benchmarking
19
–Classes of Competitors
Strong vs,Weak
Close vs,Distant
“Good” vs.,Bad”
20
40%
Market
leader
30%
Market
challenger
20%
Market
follower
Expand Market
Defend Market Share
Expand Market Share
Attack leader Imitate
10%
Market
nicher
Special-
ize
3,Designing Competitive Strategies
21
Market-Leader Strategies
–Expanding the Total Market
New Users
– Market-penetration strategy
– New-market segment strategy
– Geographical-expansion strategy
New Uses
More Usage
–Defending
Market Share
22
Defense Strategies
Attacker
(3) Preemptivedefense
(4) Counter
offensive
defense Defender
(1)Position
defense
(5)Mobile
defense
(2) Flank defense
(6) Contractiondefense
23
Case Study,Procter & Gamble(P263)
Customer knowledge
Long-term outlook
Product innovation
Quality strategy
Line-extension strategy
Brand-extension strategy
Multibrand strategy
24
Heavy advertising & media pioneer
Aggressive sales force
Effective sales promotion
Competitive toughness
Manufacturing efficiency & cost cutting
Brand-management system
Case Study,Procter & Gamble
25
Attack Strategies
Attacker Defender
(3) Encirclement attack
(4) Bypass attack
(2) Flank attack
(5) Guerilla attack
(1) Frontal attack
26
Specific Attack Strategies
Price-discount
Cheaper goods
Prestige goods
Product proliferation
Product innovation
Improved services
Distribution innovation
Manufacturing cost reduction
Intensive advertising promotion
27
“Nichemanship”
End-user specialist
Vertical-level specialist
Customer-size specialist
Specific-customer specialist
Geographic specialist
Product or product-line specialist
Product-feature specialist
Job-shop specialist
Quality-price specialist
Service specialist
Channel specialist
Case
VCD War
29
思考练习,
1、试述,五种力量模型,的意义和分析要点。
2、什么叫产业集中度？它有什么意义？
3、什么是价值链？它对企业营销有什么意义？
4、什么叫战略集团？
30
阅读任务,
1、教材第二篇第 3－ 6章，第 92－ 255页。
2、菲利普 ·科特勒,,营销管理,
（第九版）第二篇第 8章。
回总目录
31
生产与制造 市场营销 服务 利润技术标准提供商设备制造商手机制造商电信运营商应用服务商移动通信用户
32
Selecting Competitors
–Customer Value Analysis (CVA)
Identify the major attributes customers value.
Assess the quantitative importance of the different attributes.
Assess the companies’ and competitors’ performances on the
different customer values against their rated importance.
Examine how customers in a specific segment rate the
company’s performance against a specific major competitor on
an attribute-by-attribute basis.
Monitor customer values over time.
