?2000 Prentice Hall
Objectives
? Identifying Competitors
? Evaluating Competitors
? Competitive Intelligence Systems
? Competitive Strategies
? Customer vs,Competitor Orientation
?2000 Prentice Hall
Industry Competition
? Number of Sellers - Degree of
Differentiation
? Entry,Mobility,Exit barriers
? Cost Structure
? Degree of Vertical Integration
? Degree of Globalization
?2000 Prentice Hall
Analyzing Competitors
Competitor
Actions
Objectives
Strengths &
Weaknesses
Reaction
Patterns
Strategies
?2000 Prentice Hall
Competitor’s Expansion
Plans
Markets
Pr
oduct
s
Individual
Users
Commercial
& Industrial Educational
Personal
Computers
Hardware
Accessories
Software
Dell
?2000 Prentice Hall
Hypothetical Market
Structure & Strategies
40%
Market
leader
30%
Market
challenger
20%
Market
follower
Expand Market
Defend Market Share
Expand Market Share
Attack leader
Status quo
Imitate
10%
Market
nicher
Special-
ize
?2000 Prentice Hall
Defense Strategies
Attacker
(3) Preemptive defense
(4) Counter-
offensive
defense Defender
(1) Position
defense
(5) Mobile
defense
(2) Flank defense
(6) Contraction defense
?2000 Prentice Hall
Attack Strategies
Attacker Defender
(3) Encirclement attack
(4) Bypass attack
(2) Flank attack
(5) Guerilla attack
(1) Frontal attack
?2000 Prentice Hall
Specific Attack Strategies
? Price-discount
? Cheaper goods
? Prestige goods
? Product proliferation
? Product innovation
? Improved services
? Distribution innovation
? Manufacturing cost reduction
? Intensive advertising promotion
?2000 Prentice Hall
,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
?2000 Prentice Hall
Balance
Competition Customer
+ Fighter orientation
+ Alert
+ Exploit weaknesses
- Reactive
+ ID opportunities
+ Long-run profit
+ Emerging needs & groups