competition new

7/31/2019 Competition New

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Competition

Porters model-the threat of intensesegment rivalry

Threat of new entrants

Threat of substitute products

Threat of buyers bargaining power

Threat of suppliers growing bargainingpower.


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Identifying the competitors

Number of sellers and degree ofdifferentiation-monopoly,oligopoly,monopolistic

competition and pure competition.

Analyzing competitors-strategies,objectives, strengths and weaknesses


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Competitive strategy for marketleaders

Expanding the total market-newcustomers, more usage.

Defending the market share-premiumperformance, extensive and efficientdealership system, superior service ,full-line strategy and good financing.

Expanding the market share.


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Six types of defense strategies

Position defense- occupying the mostdesirable market space in the mind of theconsumer.

Flank defense-market leader erectsoutposts to protect a weak front or aninvasion base for counter attack.

Preemptive defense-more aggressivemaneuver is to attack before the enemystarts its offence.


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Counter offensive defense-the leader is toinvade the attacker s main territory so that

they will have to pull back to defend the

territory.

Mobile defense-leader moves to newterritories that can serve as future centers

for defense and offense through marketbroadening and market diversification.


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Market challenger strategies

They are in second ,third and lower ranks in an industry.

It can attack the market leader.

It can attack firms of its own size.

It can attack small local and regional firms.

Different types of attack-

frontal attack on product,advertising,price anddistribution; the principle of force says that the greaterthe manpower the side will win.cutting price visa vis the

opponent.


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Flank attack-attack on enemys weak

points, on the basis of geographic andsegmental by identifying the weak spots ofthe opponents. To serve uncoveredmarket needs.

encirclement attackto capture a wideslice of enemy teritory.Bypass attack-bypassing the enemy and attacking easer

markets, guerrilla warfare-waging small,intermittent attacks to demoralise theopponent like selective price cuts ,intense

promotional .


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Market challenger strategies

Choosing a specific attack strategy-pricediscount, lower price goods, valuedpriced goods and services, prestige

goods, product innovation, productproliferation, distribution innovation,manufacturingcost reduction ,intensive

advertising promotion.


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Market follower strategies

Counterfeiter-they duplicate the leaders productand package and sell it on the black market.

Cloner-emulates the leaders products, name

and packaging with slight variation Imitator-copies some things from the leader but

maintains differentiation in packaging,advertising ,pricing or location.

Adapter-improves the product of the leader, andsells it in different markets.


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Market nicher strategies-leader in a smallmarket or niche.

competition new

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