Dealing with Competition
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Transcript of Dealing with Competition
Identifying competitors
Industry Market
Numbers of sellers and degree of product differentiation
Presence or absence of entry , mobility and exit barriers
Cost structure
Competitors as companies that satisfy the same customer need
Analyzing competitors Objectives
Each competitor pursues some mix of objectives : current profitability, market share growht, cash flow, technological leadership, and sevice leadership.
Analyzing competitors Strenghts and weaknesses
A company needs to gather information about each competitors strenght and weaknesses
Competitive strategies Market leaders strategies Market challenger strategies Market follower strategies Market nicher strategies
10%Market nicher
20%Marketfollower
30%Market
challenger
40%Marketleaders
Market challenger strategies Lower priced or discounted products Improved products and services Wider variety of offerings
Market nicher strategies
Smaller firms normally avoid competing with larger firms by targeting small markets of little or no interest to the larger firms