objectives

©2000 Prentice Hall

ObjectivesObjectivesObjectivesObjectives

Identifying CompetitorsIdentifying Competitors Evaluating CompetitorsEvaluating Competitors Competitive Intelligence SystemsCompetitive Intelligence Systems Competitive StrategiesCompetitive Strategies Customer vs. Competitor OrientationCustomer vs. Competitor Orientation

©2000 Prentice Hall

Industry CompetitionIndustry CompetitionIndustry CompetitionIndustry Competition

Number of Sellers - Degree of Number of Sellers - Degree of DifferentiationDifferentiation

Entry, Mobility, Exit barriersEntry, Mobility, Exit barriers Cost StructureCost Structure Degree of Vertical IntegrationDegree of Vertical Integration Degree of GlobalizationDegree of Globalization

©2000 Prentice Hall

Analyzing CompetitorsAnalyzing CompetitorsAnalyzing CompetitorsAnalyzing Competitors

CompetitorCompetitorActionsActions

ObjectivesObjectives

Strengths &Strengths &WeaknessesWeaknesses

ReactionReactionPatternsPatterns

StrategiesStrategies

©2000 Prentice Hall

Competitor’s Expansion Competitor’s Expansion PlansPlans

Competitor’s Expansion Competitor’s Expansion PlansPlans

Markets

Pro

duct

s

IndividualUsers

Commercial & Industrial Educational

PersonalComputers

HardwareAccessories

Software

Dell

©2000 Prentice Hall

Hypothetical Market Hypothetical Market Structure & StrategiesStructure & StrategiesHypothetical Market Hypothetical Market

Structure & StrategiesStructure & Strategies

40%

Marketleader

30%

Marketchallenger

20%

Marketfollower

Expand MarketDefend Market Share

Expand Market Share

Attack leaderStatus quo

Imitate

10%

Marketnicher

Special-ize

©2000 Prentice Hall

Defense StrategiesDefense StrategiesDefense StrategiesDefense Strategies

AttackerAttacker

(3)(3) PreemptivePreemptivedefensedefense

(4)(4) Counter-Counter-offensiveoffensivedefensedefense Defender

(1)(1)PositionPositiondefensedefense

(5)Mobile

defense

(2) (2) Flank defenseFlank defense

(6) (6) ContractionContractiondefensedefense

©2000 Prentice Hall

Attack StrategiesAttack StrategiesAttack StrategiesAttack Strategies

AttackerDefender

(3) Encirclement attack

(4) Bypass attack

(2) Flank attack

(5) Guerilla attack

(1) Frontal attack

©2000 Prentice Hall

Specific Attack StrategiesSpecific Attack StrategiesSpecific Attack StrategiesSpecific Attack Strategies

Price-discountPrice-discount Cheaper goodsCheaper goods Prestige goodsPrestige goods Product proliferationProduct proliferation Product innovationProduct innovation Improved servicesImproved services Distribution innovationDistribution innovation Manufacturing cost reductionManufacturing cost reduction Intensive advertising promotionIntensive advertising promotion

©2000 Prentice Hall

““Nichemanship”Nichemanship”““Nichemanship”Nichemanship”

End-user specialistEnd-user specialist Vertical-level specialistVertical-level specialist Customer-size specialistCustomer-size specialist Specific-customer specialistSpecific-customer specialist Geographic specialistGeographic specialist Product or product-line specialistProduct or product-line specialist Product-feature specialistProduct-feature specialist Job-shop specialistJob-shop specialist Quality-price specialistQuality-price specialist Service specialistService specialist Channel specialistChannel specialist

©2000 Prentice Hall

BalanceBalanceBalanceBalance

CompetitionCustomer

+ Fighter orientation+ Alert+ Exploit weaknesses- Reactive

+ ID opportunities+ Long-run profit+ Emerging needs & groups