Objectives Identifying Competitors Evaluating Competitors

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Presentation transcript:

Objectives Identifying Competitors Evaluating Competitors Competitive Intelligence Systems Competitive Strategies Customer vs. Competitor Orientation

Industry Competition Number of Sellers - Degree of Differentiation Entry, Mobility, Exit barriers Cost Structure Degree of Vertical Integration Degree of Globalization

Analyzing Competitors Objectives Competitor Actions Strategies Strengths & Weaknesses Reaction Patterns

Competitor’s Expansion Plans Markets Products Individual Users Commercial & Industrial Educational Personal Computers Hardware Accessories Software Dell

Hypothetical Market Structure & Strategies 10% Market nicher 40% Market leader 30% Market challenger 20% Market follower Expand Market Attack leader Special- ize Imitate Defend Market Share Status quo Expand Market Share

Defense Strategies (2) Flank defense Attacker Defender (3) Preemptive (4) Counter- offensive (1) Position defense (6) Contraction defense (5) Mobile defense

Attack Strategies (4) Bypass attack (2) Flank attack Attacker Defender (1) Frontal attack (5) Guerilla attack (3) Encirclement attack

Specific Attack Strategies Price-discount Cheaper goods Prestige goods Product proliferation Product innovation Improved services Distribution innovation Manufacturing cost reduction Intensive advertising promotion

“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

Balance Customer Competition + ID opportunities + Fighter orientation + Long-run profit + Alert + Emerging needs & groups + Exploit weaknesses - Reactive