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Strategies for Dealing with Competition

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Strategies for Dealing with Competition Dr rushdy wady Objectives Identifying Competitors Evaluating Competitors Competitive Intelligence Systems Competitive ... – PowerPoint PPT presentation

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Title: Strategies for Dealing with Competition


1
Strategies for Dealing with Competition
  • Dr rushdy wady

2
Objectives
  • Identifying Competitors
  • Evaluating Competitors
  • Competitive Intelligence Systems
  • Competitive Strategies
  • Customer vs. Competitor Orientation

3
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
4
Five Forces Determining Segment Structural
Attractiveness
5
Barriers and Profitability
Low, risky returns
6
Industry Competition
  • Number of Sellers - Degree of Differentiation
  • Entry, Mobility, Exit barriers
  • Cost Structure
  • Degree of Vertical Integration
  • Degree of Globalization

7
Strategic Groups in the Major Appliance Industry
  • Group A
  • Narrow line
  • Lower mfg. cost
  • Very high service
  • High price
  • Group C
  • Moderate line
  • Medium mfg. cost
  • Medium service
  • Medium price
  • Group B
  • Full line
  • Low mfg. cost
  • Good service
  • Medium price
  • Group D
  • Broad line
  • Medium mfg. cost
  • Low service
  • Low price

8
Analyzing Competitors
9
Competitors Expansion Plans
Markets
Products
10
Hypothetical Market Structure Strategies
Expand Market
Attack leader
Special- ize
Imitate
Defend Market Share
Status quo
Expand Market Share
11
Market Leader Strategies
12
Expanding the Total Market
  • New Users
  • New Uses
  • More Usage

13
Protecting Market Share
  • Innovation
  • Fortification
  • Confrontation
  • Harrassment

14
Expanding Market Share
  • Product Innovation
  • Market Segment Innovation
  • Distribution Innovation
  • Promotion Innovation

15
Defensive Strategies
  • Flanking
  • Preemptive
  • Counteroffensive
  • Mobile
  • Contraction

16
Defense Strategies
Attacker
Defender
(1) Position defense
(6) Contraction defense
17
Optimal Market Share
18
Market Challenger Strategies
19
Market Challenger Strategies
  • Direct Attack
  • Backdoor Attack
  • Guppy Attack

20
Attack Strategies
  • Frontal Attack
  • Flank Attack
  • Encirclement Attack
  • Guerilla Attack
  • Bypass Strategy

21
Attack Strategies
22
Specific Attack Strategies
  • Price-discount
  • Cheaper goods
  • Prestige goods
  • Product proliferation
  • Product innovation
  • Improved services
  • Distribution innovation
  • Manufacturing cost reduction
  • Intensive advertising promotion

23
Market Follower Strategies
24
Market Follower Strategies
  • Strategy of Conscious Parallelism
  • Found Where
  • Homogeneous Product
  • High Capital Intensity
  • Low Differentiation Options
  • High Price Sensitivity
  • Highly Competitive Industry

25
Market Follower Strategies
  • Strategic Considerations
  • Segment, Segment, Segment
  • Use R D Efficiently
  • Think Small
  • Have an Energetic CEO Who is Everywhere at Once

26
Market Nicher Strategies
27
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

28
Balance
Customer
Competition
ID opportunities
Fighter orientation
Long-run profit
Alert
Emerging needs groups
Exploit weaknesses
- Reactive
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