Importance Of Being Competitive

The Importance of Being

CompetitiveBy: Roger HicksJuly 2009

[email protected]

Prepared for Portland Chapter of PDMA

Roger Hicks, July 2009 The Importance of Being Competitive 2

Objectives

Competitive Analysis and the Product Life Cycle

Questions to PonderWords of Caution


Competitive Analysis and The Product Lifecycle

Situation Assessm

ent

Product Developm

ent

Product Introduct

ion

Ongoing Operation

s

Company Objectives

Market Characteristic

s

Roger Hicks, July 2009 The Importance of Being Competitive

Gathering Information for the Assessment

PublicCompany provided materialsMedia reportsRegulatory filingsCustomer Interviews

PrivateSales channel feedbackPartners and value chain playersIndustry analysis reportsFirst hand testing and tear-downs

4

MORE COMMON

LESS COMMON

MORE COMMON

LESS COMMON


Summarizing the Situation

5

Competitor A

Competitor B

Competitor C

Your Company

Brand Position

Target Customers

Marketing Initiatives

Product Strength

Channel Strength

Supplier Strengths

Financial Situation


Situation Assessment Mistakes

Not appreciating the strengths of existing competitive positions

Reliance on intuition and qualitative information

Poor dissemination of market and competitor intelligence


How Fair Do You Need to Be?

Is it OK to cheat?Where do you draw the line on ethics of

using information about competitors

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Developing the Solution

Factor 1 Factor 4 Factor 5 … Factor nFactor 2 Factor 3

Low

High

Valu

e

Competitor A

Competitor B

Competitor C

Each competitor has a distinctive customer value curve based on its’ choice of the key strategic factors to focus on to

achieve successNote: based on principles from “Blue Ocean Strategy”


Competing on Total Value

Included Features and Performance

Integration into a total

solution

Encouragement of Loyalty

and Good Will

Company Value

Experience Value

Basic Value

Less might be more

How the pieces go together adds value

that’s hard to measure directly

Benefits of a reinforcing system of developing and selling

product

What is the extra value of a superior understanding of all the

competitive factors?Potential Value

Them US


Product Development Mistakes

Thinking the competition did their homework and matched market needs with product features.

Discounting the importance of a new approach from an unimportant competitor. The innovators dilemma

Thinking competitors will have a poor response to your product and marketing efforts.


How Many Features Do You Need?

Is Less Really More?How can it be OK to include features and

capability the customers did not ask for?

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Product Introduction Battles

How To Define SuccessProduct comparisonsSuccess storiesAmount of pre-emption and retaliationChannel enthusiasmMarket share growthMinimal damage control from leaksPositive sales feedback from the front linesForecast accuracyLeadership positions

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Product Introduction Mistakes

Thinking the competition is not ready to defend their market position.

Trusting the secrecy agreements.

Not eating your own dog food.


When Is the Product Ready?

Is It Smart to Launch an Unfinished Product?What good can come from introducing a

product that falls short of objectives?

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Ongoing Operations

Win / Loss AnalysisWhere is the sweet spotWhere is the weak linkAre desirable market positions being

defended Measuring Marketing Programs

Level and type of pre-sales activityCustomer survey trendsFinancial impacts

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Ongoing Operations Mistakes

Reacting to all the competitor counter-attacks

Spending resources with no clear payback or strengthening of competitive positions

Waiting


What is the best response to competitive attacks?

Is it good to engage with competitors or be a leader and direct your attention to customers?

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Final Thoughts

Do Your Homework Expect the Unexpected Race to Be Second Be Skeptical Keep Them Guessing

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Thank You !

Importance Of Being Competitive

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