Lecture 7.pptasddddddddddddddddddddsaddd
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Lecture 7.pptasddddddddddddddddddddsaddd
- 2. Competitive Strategies Competitive Positions • Market leader strategy • Market challenger strategy • Market follower strategy • Market nicher strategy 18-32
- 3. Competitive Strategies Competitive Positions Market leader is the firm with the largest market share and leads the market price changes, product innovations, distribution coverage, and promotion spending Market challengers are firms fighting to increase market share Market followers are firms that want to hold onto their market share Market nichers are firms that serve small market segments not being pursued by other firms 18-33
- 4. Competitive Strategies Market Leader Strategies • Expand total demand • Protect their current market • Expand market share 18-34
- 5. Competitive Strategies Market Leader Strategies Expanding Total Demand Expand total demand by developing: • New users • New uses • More usage of its products 18-35
- 6. Competitive Strategies Market Leader Strategies Protecting Market Share Protect current market by: • Fixing or preventing weaknesses that provide opportunities to competitors • Maintaining consistent prices that provide value • Keeping strong customer relationships • Continuous innovation 18-36
- 7. Competitive Strategies Market Leader Strategies Expanding Market Share Expand market share by: • Increasing market share in served markets, thus increasing profitability • Producing high-quality products • Creating good service experiences • Building close customer relationships 18-37
- 8. Competitive Strategies Market Challenger Strategies Challenge the leader with an aggressive bid for more market share Play along with competitors and not rock the boat 18-38
- 9. Competitive Strategies Market Challenger 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 18-39
- 10. Competitive Strategies 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 • Marketing mix 18-40
- 11. 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 18-41
- 12. Balancing Customer and Competitor Orientations Competitor-centered company spends most of its time tracking competitor’s moves and market shares and trying to find ways to counter them • Advantage is that the company is a fighter • Disadvantage is that the company is reactive 18-42
- 13. Balancing Customer and Competitor Orientations Customer-centered company spends most of its time focusing on customer developments in designing strategies Provides a better position than competitor- centered company to identify opportunities and build customer relationships 18-43
- 14. Balancing Customer and Competitor Orientations Market-centered company spends most of its time focusing on both competitor and customer developments in designing strategies 18-44
- 15. The End