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Published byCatrin Klara Weiss Modified over 6 years ago
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Induce your competitors not to invest in those products, markets and services where you expect to invest the most … that is the fundamental rule of strategy. Bruce Henderson, Founder of BCG There is nothing more exhilarating than to be shot at without result. Winston Churchill
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Five Forces Determining Segment Structural Attractiveness
Potential Entrants (Threat of Mobility) Suppliers (Supplier power) Industry Competitors (Segment rivalry) Buyers (Buyer power) Substitutes (Threats of substitutes)
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Barriers and Profitability
Entry Barriers Exit barriers High, stable returns High Low High, risky returns High Low, stable returns Low Low, risky returns
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Industry Competition Number of Sellers - Degree of Differentiation
Entry, Mobility, Exit barriers Cost Structure Degree of Vertical Integration Degree of Globalization
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Analyzing Competitors
Objectives Competitor Actions Strategies Strengths & Weaknesses Reaction Patterns
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Competitor’s Expansion Plans
Markets Products Individual Users Commercial & Industrial Educational Personal Computers Hardware Accessories Software Dell
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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
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Defense Strategies (2) Flank defense Attacker Defender (3) Preemptive
(4) Counter- offensive (1) Position defense (6) Contraction defense (5) Mobile defense
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Attack Strategies (4) Bypass attack (2) Flank attack
Attacker Defender (1) Frontal attack (5) Guerilla attack (3) Encirclement attack
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Specific Attack Strategies
Price-discount Cheaper goods Prestige goods Product proliferation Product innovation Improved services Distribution innovation Manufacturing cost reduction Intensive advertising promotion
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“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
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Balance Customer Competition + ID opportunities + Fighter orientation
+ Long-run profit + Alert + Emerging needs & groups + Exploit weaknesses - Reactive
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