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Dealing with Competition

Rye GutierrezAteneo Graduate School of Business

www.rye-gutierrez.blogspot.com

Top 10 Concepts

Power Point Version

Outline: Dealing with Competition…

Concept 1: Effective marketing strategies involve studying competitors and competitive forces. (who?)

Concept 2: The 5 Competitive Forces

Concept 3: Marketers need to identify competitors' strategies, objectives, strengths and weaknesses. (what?)

Concept 4: A company should identify competitors by using both industry- and market-based analyses.

Outline: Dealing with Competition…

Concept 5: There are four roles that firms can play in a market: the market leader, the market challenger, the market follower, the market nicher. Important to business success (why?)

Concept 6: If you are the market leader, you must continuously innovate to retain and expand position.

Concept 7: If you are the market challenger, you must address areas that the market leader cannot serve.

Outline: Dealing with Competition…

Concept 8: If you are the market follower, you must know how to hold current customers and win a fair share of new ones.

Concept 9: If you are the market nicher, you must be a leader in a small market.

Concept 10: Companies should not overdo emphasis on competitors.

Concept 1:

Marketing strategies = competitors + competitive forces.

Building strong brands require a keen understanding of competition.

Effective marketing strategies involve studying competitors and competitive forces.

The 5 Competitive Forces that determine the long-term attractiveness of a market are:

1. Industry Competitors2. Potential Entrants3. Substitutes4. Buyers 5. Suppliers

Concept 2:

“May the Force be with you.”

Marketers need to identify competitors' strategies, objectives,

strengths and

weaknesses.

Concept 3:

“Know thy neighbor.”

A company should identify competitors by using both industry- and market-based analyses.

Is your competition the opposing brand or the substitute product?

Does the market prefer talking on the phone over chatting?

Concept 4:

Identify Competitors

There are four roles that firms can play in a market:

1. the market leader2. the market challenger3. the market follower4. the market nicher

Concept 5:

“Role Call”

If you are the market leader, you must continuously innovate to retain and expand position.

Unless there is a legal monopoly, vigilance is a must.

Concept 6:

“Follow the Leader.”

If you are the market challenger, you must address areas that the market leader cannot serve.

Market share can also be gained from the followers and nichers.

Concept 7:

Challenger

If you are the market follower, you must know how to hold current customers and win a fair share of new ones.

Preference of many companies because less capital intensive.

Tries to bring distinctive advantages to its target market.

Concept 8:

Market Follower

If you are the market nicher, you must be a leader in a small market.

Can command top dollar because of specialized skills/products.

Strategy is effective for both small and large firms.

Concept 9:

Market Nicher

Companies should maintain a good balance of consumer and competitor monitoring to satisfy the needs of today's global market.

Companies should not overdo emphasis on competitors.

Concept 10:

Balance

Summary: Dealing with Competition is…

1. Necessary2. Focused on consumers and

competitors3. Depends on Market Position4. Involves everybody (who?) 5. Changing

My Conclusion: Dealing with Competition

Overcoming competition requires

attention to competitors

as well as consumers

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Dealing With Competition

Rye GutierrezAteneo Graduate School of Business

www.rye-gutierrez.blogpsot.com

Top 10 Concepts

THE END