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

2. 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

3. 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?

4. 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

5. 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 Do you like that price?
I will offer a chicken and rice meal for 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?

6. 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

7. 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

8. 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?

9. 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

10. 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

11. 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

12. 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