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Strategies for Competing in Markets

The document discusses strategies for dealing with competition, including how to identify competitors, analyze their strengths and weaknesses, and compete effectively as a market leader, challenger, follower, or nicher. It provides frameworks for assessing industry structure and competitors, and strategies market participants can employ around pricing, products, services, and other areas.

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Iqbal Kabir
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116 views20 pages

Strategies for Competing in Markets

The document discusses strategies for dealing with competition, including how to identify competitors, analyze their strengths and weaknesses, and compete effectively as a market leader, challenger, follower, or nicher. It provides frameworks for assessing industry structure and competitors, and strategies market participants can employ around pricing, products, services, and other areas.

Uploaded by

Iqbal Kabir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

11

Dealing with Competition


Chapter Questions

 How do marketers identify primary competitors?


 How should we analyze competitors’ strategies,
objectives, strengths and weaknesses?
 How can market leaders expand the total market and
defend market share?
 How should market challengers attack market leaders?
 How can market followers or nichers compete
effectively?

2
Five Forces Determining Segment
Structural Attractiveness

3
Identifying Competitors

Competitor Myopia

4
Industry Concept of Competition

 Number of sellers and degree of differentiation


 Entry, mobility, and exit barriers
 Cost structure
 Degree of vertical integration
 Degree of globalization

5
Number of sellers and degree of
differentiation

Pure
Pure Monopoly
Monopoly

Oligopoly
Oligopoly

Monopolistic
Monopolistic Competition
Competition

Pure
Pure Competition
Competition

6
• Market Concept of Competition

Competitor Map

7
Analyzing Competitors

 Strategies
 Objectives
 Strengths and Weaknesses

8
Customer Ratings of Competitors on Key
Success Factors

Customer Product Product Technical Selling


Awareness Quality Availability Assistance Staff
Competitor A E E P P G
Competitor B G G E G E
Competitor C F P G F F

Note : E - Excellent; G - Good; F – Fair; P - Poor

9
Considering Variables in Analyzing Competitors

Share of market

Share of mind

Share of heart
10
Market Share, Mind Share, and Heart Share

11
Selecting Competitors

 Strong versus Weak


 Close versus Distant
 Good versus Bad

12
Hypothetical Market Structure

10% 20% 30% 40%


Market Market Market Market
Nichers Follower Challenger Leader

13
Expanding the Total Market by
Market Leader

New customers

More usage

14
Six Types of Defense Strategies

15
Other Competitive Strategies

Market
Challengers

Market Market
Followers Nichers

16
Market Challenger Strategies

 Define the strategic objective and opponents


 Choose a general attack strategy
 Choose a specific attack strategy

17
General Attack Strategies

Frontal Attack Flank Attack

Encirclement
Bypass Attack
Attack

Guerrilla Warfare
18
Specific Attack Strategies

 Price discounts  Product innovation


 Lower-priced goods  Improved services
 Value-priced goods  Distribution innovation
 Prestige goods  Manufacturing-cost
 Product proliferation reduction
 Intensive advertising
promotion

19
Market Follower Strategies

Counterfeiter

Cloner

Imitator

Adapter

20

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