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MKM5995

Week 3

Analysis of markets, competition,Global market environment.

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Creating Sustainable CompetitiveAdvantage

Examples of SCA For many years, Singapore Airlines were riding on itsSCA of having the best in-flight service

As more airlines improved their service andnarrowed the gap, SIA sought other competitiveadvantages among which are The most modern fleet

Outstanding Service on the Ground

A super entertainment system in its cabins

Comfort in its First Class cabins at an unparallel level

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Competitor Analysis

Identifying your competition

Industry (refer to week 2)

Pure competition

Monopoly

Monopolistic

Oligopoly

Market

Competitors are identified as those serving similar customerneeds (refer Marketing Myopia, Levitt, 1960)

Strategic groups

Competitors are identified as those using similar strategies,

resources and customers

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Porters Five Forces Determining market attractiveness

Using Porters Five Competitive Forces (covered last week)

http://www.youtube.com/watch?v=mYF2_FBCvXw

http://www.youtube.com/watch?v=mYF2_FBCvXwhttp://www.youtube.com/watch?v=mYF2_FBCvXw

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Example of Competition (Rivalry)

Coke vs Pepsi

A man suffering from extreme thirst in

the desert, sees a supposedly Cokebottle in front of him. Then when he

takes it out, its a Pepsi bottle. Despite

being extremely thirsty, he still did not

drink a drop of the Pepsi.

http://www.youtube.com/watch?v=tgox_4o_OrI

http://www.youtube.com/watch?v=tgox_4o_OrIhttp://www.youtube.com/watch?v=tgox_4o_OrI

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Understanding your competitors

Strengths and Weaknesses

Share of market Share of mind

Share of heart

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Porters generic strategies creatingcompetitor advantage

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Six types of defense strategy

Defender

Flank Preemptive

Counteroffensive

Mobile Contraction

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Competitor-centred companies

Example: Cola Wars

> When coke became the official drink of the cricket world cup

(India), Pepsi launched the hugely successful Nothing official

about it? Campaign? Linked to the competitive situation (and ofcourse, to daily Indian life as well)!

Balancing customer and competitor orientations

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Customer-centred companies

Jeff Bezos, founder of Amazon.com,

strongly favors a customer-centeredorientation: Amazon.com

strategy has been going to obsess over

customers and not competitors. They

want to watch their competitors, learn

from them, see the things that they

were doing for customers and copythose things as much as they can. But

they never planned to obsess over

them.

http://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspx http://blogs.hbr.org/hbsfaculty/2010/04/inside-best-buys-customer-cent.html

http://www-935.ibm.com/services/us/imc/pdf/g510-4027-the-customer-centric-store.pdf

Providing excellent customer service

http://www.youtube.com/

watch?v=yXiH9EMZmIA

http://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://blogs.hbr.org/hbsfaculty/2010/04/inside-best-buys-customer-cent.htmlhttp://www-935.ibm.com/services/us/imc/pdf/g510-4027-the-customer-centric-store.pdfhttp://www.youtube.com/watch?v=yXiH9EMZmIAhttp://www.youtube.com/watch?v=yXiH9EMZmIAhttp://www.youtube.com/watch?v=yXiH9EMZmIAhttp://www.youtube.com/watch?v=yXiH9EMZmIAhttp://www-935.ibm.com/services/us/imc/pdf/g510-4027-the-customer-centric-store.pdfhttp://www-935.ibm.com/services/us/imc/pdf/g510-4027-the-customer-centric-store.pdfhttp://www-935.ibm.com/services/us/imc/pdf/g510-4027-the-customer-centric-store.pdfhttp://www-935.ibm.com/services/us/imc/pdf/g510-4027-the-customer-centric-store.pdfhttp://www-935.ibm.com/services/us/imc/pdf/g510-4027-the-customer-centric-store.pdfhttp://www-935.ibm.com/services/us/imc/pdf/g510-4027-the-customer-centric-store.pdfhttp://www-935.ibm.com/services/us/imc/pdf/g510-4027-the-customer-centric-store.pdfhttp://www-935.ibm.com/services/us/imc/pdf/g510-4027-the-customer-centric-store.pdfhttp://www-935.ibm.com/services/us/imc/pdf/g510-4027-the-customer-centric-store.pdfhttp://www-935.ibm.com/services/us/imc/pdf/g510-4027-the-customer-centric-store.pdfhttp://www-935.ibm.com/services/us/imc/pdf/g510-4027-the-customer-centric-store.pdfhttp://www-935.ibm.com/services/us/imc/pdf/g510-4027-the-customer-centric-store.pdfhttp://www-935.ibm.com/services/us/imc/pdf/g510-4027-the-customer-centric-store.pdfhttp://blogs.hbr.org/hbsfaculty/2010/04/inside-best-buys-customer-cent.htmlhttp://blogs.hbr.org/hbsfaculty/2010/04/inside-best-buys-customer-cent.htmlhttp://blogs.hbr.org/hbsfaculty/2010/04/inside-best-buys-customer-cent.htmlhttp://blogs.hbr.org/hbsfaculty/2010/04/inside-best-buys-customer-cent.htmlhttp://blogs.hbr.org/hbsfaculty/2010/04/inside-best-buys-customer-cent.htmlhttp://blogs.hbr.org/hbsfaculty/2010/04/inside-best-buys-customer-cent.htmlhttp://blogs.hbr.org/hbsfaculty/2010/04/inside-best-buys-customer-cent.htmlhttp://blogs.hbr.org/hbsfaculty/2010/04/inside-best-buys-customer-cent.htmlhttp://blogs.hbr.org/hbsfaculty/2010/04/inside-best-buys-customer-cent.htmlhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspxhttp://www.destinationcrm.com/Articles/CRM-News/Daily-News/7-Qualities-of-a-Customer-Centric-Business--47191.aspx

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Balancing customer and competitororientations

A wonderful example of balancing customer &

competitor orientation was once displayed by

Walmart, as it would place its store next to wherever

K-mart is. What happened next is history now, but

the balancing act played by Walmart was

commendable. Its a lesson for marketers to not

overdo their focus on competitors. Companies aremore likely to be hurt by emerging consumer needs

and new competitors than by existing competitors

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Global Challenges

What is a global firm?

A global firm is one that operates in more than

one country and captures R&D, production,

logistical, marketing, and financial advantages

in its costs and reputation that are not

available to purely domestic competitors.

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Major decisions in internationalmarketingDeciding whether to

go abroad

Deciding which marketto enter

Deciding on the

marketing program

Deciding how to enter

the market

Deciding on the

marketing organisation

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Regional free trade zones

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Cultural Dimensions

Individualism vs Collectivism

Masculine vs Feminine

High vs Low Power Distance

Weak vs Strong uncertainty avoidance

Link for explanation: http://geert-hofstede.com/dimensions.html

http://geert-hofstede.com/dimensions.htmlhttp://geert-hofstede.com/dimensions.htmlhttp://geert-hofstede.com/dimensions.htmlhttp://geert-hofstede.com/dimensions.htmlhttp://geert-hofstede.com/dimensions.html

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