dealing with the competition.pptVIP

Objectives Identifying Competitors Evaluating Competitors Competitive Intelligence Systems Competitive Strategies Customer vs. Competitor Orientation Five Forces Determining Segment Structural Attractiveness Barriers and Profitability Industry Competition Number of Sellers - Degree of Differentiation Entry, Mobility, Exit barriers Cost Structure Degree of Vertical Integration Degree of Globalization Strategic Groups in the Major Appliance Industry Analyzing Competitors Competitor’s Expansion Plans Hypothetical Market Structure Strategies Defense Strategies Optimal Market Share Attack Strategies Specific Attack Strategies Price-discount Cheaper goods Prestige goods Product proliferation Product innovation Improved services Distribution innovation Manufacturing cost reduction Intensive advertising promotion “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 Balance Review Identifying Competitors Evaluating Competitors Competitive Intelligence Systems Competitive Strategies Customer vs. Competitor Orientation * ?2000 Prentice Hall * 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 Potential Entrants (Threat of Mobility) Buyers (Buyer power) Substitutes (Threats of substitutes) Suppliers (Supplier power) Industry Competitors (Segment rivalry) Low, stable returns Low High, stable returns High Low Low, risky returns High, risky returns High Entry Barriers Exit barriers High Low High Low Quality Vertical Integration Group A Narrow line Lower mfg. cost Very high