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Chapter 18 - Creating Competitive Advantage

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Chapter 18 - Creating Competitive Advantage

Uploaded by

nquochuy10a6
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 23

HELLO!

I am Tran Tri Dung


Founder & CEO Công ty Cổ phần WMS
Giảng viên Chuyên ngành Marketing

Copyright © 2020 by WMS


1
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18.
Creating
Competitive
Advantage

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Contents

▸ Competitor Analysis
▸ Competitive Strategies
▸ Balancing Customer and Competitor
Orientations

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Creating Competitive
Advantage

▸ Competitive advantages require delivering


more value and satisfaction to target
consumers than competitors do
▸ Require to analyze their competitors and
develop value-based strategies for profitable
customer relationships

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Competitor Analysis

▸ Competitor analysis is the process of identifying,


assessing, and selecting key competitors
▸ Designing a Competitive Intelligence System

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Identifying Competitors

Competitors can include:


▸ All firms making the same product or class of products
▸ All firms making products that supply the same service
▸ All firms competing for the same consumer dollars

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Assessing Competitors
Competitor’s objectives Competitor’s strategies Competitor’s strengths
and weaknesses
 Profitability  Strategic group offers
 Market share growth the strongest  What can our
competition competitors do?
 Technological leadership
 Benchmarking
 Cash flow

Estimating competitor’s
reactions
 What will our
competitors do?

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Assessing Competitors

Customer value analysis determines the benefits that target


customers’ value and how customers rate the relative value of
various competitors’ offers
▸ Identification of major attributes that customers value and
the importance of these values
▸ Assessment of the company’s and competitors’ performance
on the valued attributes

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Assessing Competitors

Brand imageries
1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00

Brand A Brand B Brand C

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Selecting Competitors to
Attack and Avoid

 Good or bad competitors


 “Close” or “distant” competitors
 Strong or weak competitors
 Finding uncontested market spaces

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Competitive Strategies

Approaches to Marketing Strategy:

Entrepreneurial marketing

Formulated marketing

Intrepreneurial marketing

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Competitive Strategies

Basic Competitive Strategies


▸ Michael Porter’s four basic competitive
positioning strategies

Overall cost
Differentiation
leadership

Middle of the
Focus
road

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Competitive Strategies

Basic Competitive Strategies


▸ Michael Treacy and Fred Wiersema suggest companies can
gain leadership positions by delivering superior value to
their customers in three strategies or “value disciplines”

Operational Customer Product


excellence intimacy leadership

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Competitive Positions

Market Market
Market leader Market nicher
challenger follower
strategies strategies
strategies strategies

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Market Leader Strategies

▸ Protect their current market


▸ Expand total demand (new users, new uses,
more usage of its products)
▸ Expand market share

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Market Challenger Strategies

▸ Challenge the leader with an aggressive bid for


more market share
▸ Play along with competitors and not rock the boat

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Market Challenger Strategies

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Market Follower Strategies

▸ Second mover advantage occurs when a market


follower observes what has made the leader
successful and improves on it
▸ Challenges firms its own size or smaller

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Market Nicher Strategies

 Ideal market niche is big enough to be profitable


with high growth potential and has little interest
from competitors
 Key to market niching is specialization

Market Customer Product

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Balancing Customer and
Competitor Orientations

Companies need to continuously adapt strategies to changes


in the competitive environment
 Competitor-centered company
 Customer-centered company
 Market-centered company

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THANKS!
Any questions?
You can find me at https://trantridung.vn/

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