Competitor Analysis and Sources of Advantage Chapter Six M arket-Based Management, 4 th edition

6-2 Competitor Analysis and Sources of Advantage Chapter Six –Competitive Strategy –Knowledge as a Competitive Advantage –Competitive Forces that Shape Competitive Position and Profitability Industrial Analysis Competitor Analysis Sources of Competitive Advantage

6-3 Competitive Advantage and Knowledge What is a Competitive Strategies? How does a firm establish a competitive advantage ? Knowledge advantage How does a firm leverage knowledge as a competitive advantage? How does a competitive advantage relate to profit potential? figure 6-3

6-4 Competition and Competitive Position How does a firm maintain a competitive advantage? What forces affect a firm’s competitive position and profitability?

6-5 Industrial Analysis 1.Barriers to Entry 2.Barriers to Exit 3.Customer Buying Power 4.Supplier Selling Power 5.Substitutes 6.Competitive Rivalry Why should a firm conduct an Industry Analysis? to see if the environment attractive or not What are the Industry Forces? How are they (the industry forces) related to profit potential? see the text details What is the Prisoner’s Dilemma?

6-6 Competitive Position How does a firm determine its direct competitors? use perceptual mapping How does a firm acquire knowledge about its competitors (competitor intelligence)? everyone in the firm, search Why is this knowledge important? 知己知彼 百戰百勝

6-7

6-8 Competitor Analysis

6-9 Sources of Competitive Advantage

6-10 Cost Advantages Three Types of Cost Advantage: 1.Variable Cost Advantage 2.Marketing Cost Advantage 3.Operating Cost Advantage How do firms achieve these advantages? –Scale effects –Scope effects –Learning effects

6-11 Profit Impact of Cost Advantage

6-12 Differentiation Advantages Three Types of Differentiation Advantage 1.Product Advantage 2.Service Advantage 3. Reputation Advantage

6-13 Profit Impact of Differentiation Advantage

6-14 The reputation of a consumer product( 左 1) or service( 左 2) can have a bigger impact on price premium than a product advantage

6-15 Marketing Advantages Three Types of Marketing Advantage 1.Channel Advantage 2.Sales Force Advantage 3.Brand Awareness How do firms achieve these advantages? –Marketing Expertise, Training, and Knowledge –Strong Distribution System

6-16 Takeaways / Review Competitive Advantage Competitive and Industrial Analysis Profit Impact of Competitive Advantages Sources of Competitive Advantages

6-17 Marketing Performance Tools Industry Analysis

6-18 Marketing Performance Tools Cost Advantage

6-19 Marketing Performance Tools Differentiation Advantage

6-20 Marketing Performance Tools Marketing Advantage