1. Competitive Advantage
Chapter : 18
Lec: 10 a

2. Competitor Analysis Competitive Advantage
An advantage over competitors gained by offering consumers greater value than competitors do
e.g. Monal
Competitor Analysis
The process of identifying key competitors; assessing their objectives, strategies, strengths, and weaknesses, and reaction patterns: and selecting which competitors to attack or avoid

3. Monal

4. Competitor Analysis Competitive marketing strategies
Strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage

5. Steps ins Analyzing Competitors
Assessing competitors’ objectives, strategies, strengths and weaknesses, and reaction patterns
Identifying the company’s competitors
Selecting which competitor to attack or avoid

6. Competitor Analysis Identifying Competitors
- similar products and services
- Same customers
- Similar prices
e.g. Coke vs. Pepsi
Competitors Myopia
- latent competitors can also be a threat along with the current competitors
e.g. Kodak – Fujifilm – Digital Cameras
Telegraph department- cell phone/ Internet
Encyclopaedia Britannica – Wikipedia etc.

7. Coke vs. Pepsi

8. Identifying Competitors
Industry point of view
e.g. Oil Industry, Automobile industry, Telecom industry etc.
Market Point of view
e.g. Satisfying the same customer need and build relationship with the same customer

9. Telecom Industry

10. Assessing Competitors
Determining Competitors’ Objectives
- Importance on profitability, market share, service, technology and other goals
e.g. Objective low cost, it will reduce cost
Zong
- New segments
e.g. Pizza Hut diverse menu
Dominos – Only Pizza

11. Assessing Competitors
Identifying Competitors’ Strategies
- Strategic Group: A group of firms in an industry following the same or a similar strategy
e.g. Surf Excel ---Ariel
Lado Soap--- Gayee soap
- A company can jump from one group to another
e.g. Life Bouy to premium sector

12. Competitors

13. Assessing Competitors
Estimating Competitors’ Reactions
- What will our competitors’ do?
- price cuts, promotion, new product
e.g. Telecom wars
e.g. Lawn collections (Gul- Ahmed, Sana Safinaz, Al-Karam)

14. Assessing Competitors
Assessing Competitors’ Strengths and Weaknesses
- What can our competitors’ do?
- gather information about them
- Secondary sources are good for information
- Companies can benchmark themselves
Benchmarking
Comparing company’s products and processes to those of competitors or leading firms in other industries to identify “best practices” and find ways to improve quality and performance

17. Selecting Competitors to Attack and Avoid
Strong or weak competitors
Customer value analysis
Analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors’ offers
e.g. Mac makeup– good quality
Charles & Keith– comfortable and trendy

18. Charles & Keith

19. Strategic Sweet Spot versus Competitors
Competitors’ offerings
Customers’
needs
Competitive environment
Company’s capabilities

20. Selecting Competitors to Attack and Avoid
Close or Distant Competitors
e.g. Nike with Adidas and Reebok instead of Bata
- Banks taking over other banks

21. Selecting Competitors to Attack and Avoid
Good or Bad Competitors
Good: go by the rules of the industry
Bad: Break the rules or make their own rules
Finding Uncontested Market Spaces
- Blue ocean strategy

22. Designing a Competitive Intelligence System
Collecting
Analyzing
Action

23. Competitive Strategies
Approaches to Marketing Strategy
- No one strategy is best for every company
- (Volunteer to Volunteer) V2 V marketing taking a hype
Three stages of marketing strategy
- Entrepreneurial Marketing---your own rules
- Formulated Marketing---established companies follow
- Intrepreneurial Marketing---to get out of formulated marketing and be close to customers

24. Basic Competitive Strategies
3 winning strategies
Overall cost leadership (production & Distribution cost)
e.g. Wal-Mart, Savor
- Differentiation (something different)
e.g. Samsung 3D Television
- Focus (be specific about who you are targeting)