Week 8 Competition and your customer survey Entrepreneurship Week 8 Competition and your customer survey

Your competitors will use one of these 7 strategies Competitive Strategy Your competitors will use one of these 7 strategies Lower costs - High barriers to market entrants – high costs to start a business High switching costs – customers have long contracts New products or services – Special products or services – Alliances - Size – no room for the competition

Competitive Strategies – Restaurant Which of these 7 competitive strategies does McDonalds use? Lower costs - High barriers to market entrants – high costs to start a business High switching costs – customers have long contracts New products or services – Special products or services – Alliances - Size – no room for the competition If you were starting a restaurant in Nizwa, how could you compete against McDonalds?

Competitive Strategies – Restaurant Competitive response to McDonalds Lower costs - Many meals for less than 2 OR New products or services – 3 traditional Omani meals Special products or services – 3 food items for children Alliances - location near Nizwa Souq

Competitive Strategies – restaurant Example Survey to find customer demand Lower costs - Many meals for less than 2 OR New products or services – 3 traditional Omani meals Special products or services – 3 food items for children Alliances - location near Nizwa Souq Possible questions I will offer a lamb kebob and rice meal for 1.800. Do you like that price? I will offer a chicken and rice meal for 1.700. Do you like that price? I will have chocolate milk for children. Is that important to you? I will have baklava. Do you like that? I will have camel milk chocolate. Would you like that? I plan to open the restaurant near the Nizwa Souq. Is that a good location?

Competitive Strategies – children’s clothing store Which of these 7 competitive strategies does Lulu Hypermarket use for clothing? Lower costs - High barriers to market entrants – high costs to start a business High switching costs – customers have long contracts New products or services – Special products or services – Alliances - Size – no room for the competition

Competitive Strategies- Children’s clothing store Competitive responses to Lulu Hypermarket clothing – New products or services – more kinds of children’s clothing, more sizes Special products or services – imported brands Alliances - store location next to ice cream shop

Competitive Strategies – Children’s clothing store Example survey to determine customer demand New products or services – more kinds of children’s clothing, more sizes Special products or services – imported brands Alliances - store location next to ice cream shop Possible questions What size children’s clothing do you usually buy? Do you often buy shoes to match an child’s outfit? Do you like the Carter’s brand for children’s clothing? Do you like the Oshkosh Bgosh brand? What is the most you would spend for a girl’s dress? What store location would be most convenient for you?

Competitive Strategies – Flower Shop A flower shop exists in the Nizwa Mall. Which strategies do you think the store owner probably uses? Lower costs - High barriers to market entrants – high costs to start a business High switching costs – customers have long contracts New products or services – Special products or services – Alliances - Size – no room for the competition

Competitive Strategies – Flower Shop What would be a good Competitive Response? Lower costs - High barriers to market entrants – high costs to start a business High switching costs – customers have long contracts New products or services – Special products or services – Alliances - Size – no room for the competition

Competitive Strategies – Flower Shop What are some possible survey questions to evaluate that competitive response? Lower costs - High barriers to market entrants – high costs to start a business High switching costs – customers have long contracts New products or services – Special products or services – Alliances - Size – no room for the competition

Competitive Strategies What is the competitive strategy for Your business? Lower costs? High barriers to market entrants – high costs to start a business? High switching costs – long contracts for customers? New products or services? Special products or services? Alliances? What questions will you ask to evaluate that strategy? Write at least 5 survey questions to test your strategy