Competition

Competitive Forces Segment rivalry New entrants Substitute products Customer bargaining power Supplier bargaining power

Who is the competitor? Identifying competition is critical Entry barriers Exit barriers Industry classification Market classification

Are all customers equal? Vulnerable High Let them go Maybe dissatisfied and unhappy. Try to retain They are happy, but you may not want them Loyal and happy. Retain Low Low High Valuable

Identifying Competition Share of market – actual market share Share of mind – top of mind recall for brand/company Share of heart – preference for brand/company

Which competitors to focus on? Strong vs weak Close vs distant Good vs bad

Defense Strategies Position defense Flank defense Premptive defense Counteroffensive defense Mobile defense Contraction defense

Offence Strategies Frontal attack Flank attack Encirclement attack Bypass attack Guerilla attack

Customer and Competitor Orientations Customer focused Alert to market situations. Product/service innovation Has to be nimble in the market Meeting needs profitably Mostly reactive. Cannot satisfy all customers May have to compromise company goals