PPT Dealing With Comp
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Transcript of PPT Dealing With Comp
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DEALING WITH COMPETITION
Rye GutierrezAteneo Graduate School of Business
Top 10 Concepts
Outline: Dealing with your market’s competition…
1. Identifying competitive forces are comprised of threat of: intense segment rivalry, threat of new entrants, threat of substitute products, threat of buyers’ growing bargaining power, threat of suppliers’ growing bargaining power.
2. Identifying competitors must be based from both an industry and market point of view
3. Competitor analysis is done by understanding their strengths and weaknesses.
4. Another guage of competitor analysis is: share of market, share of mind, and share of heart.
1. A
Outline: Dealing with your market’s competition…
5. In any market, there are four distinct characters: the leader, challenger, follower and nicher.
6. The leader is the undisputed principal company in the market that commands majority of the market share. Unless the leader has a legal monopoly, it must always be on its toes.
7. The challenger believes the leader is not invincible.
8. The follower doesn’t like to rock the boat.
9. The nicher finds his own way.
10. Balancing between customer and competitor is the smart way to go for companies
Concept 1: Identifying competitive forces
Comprised of :1. Threat of Intense
segment rivalry,
2. Threat of new entrants,
3. Threat of substitute products,
4. Threat of buyers’ growing bargaining power,
5. Threat of suppliers’ growing bargaining power.
Concept 2:Identifying competitors
Must be based from both an industry and market point of view
Industry
Market
Concept 3: Competitor Analysis
is done by understanding
their strengths
and weaknesses.
Concept 4: Another guage of competitor analysis
1. Share of Market, competitor’s share of target
market
2. Share of Mind, company name recall
3. Share of Heart.
customer preference
Concept 5: Company order in the Industry Totem Pole
In any market, there are four distinct characters: the leader, the challenger, the follower and
the nicher.
Concept 6: The Leader
Is dominant Looks for ways
to get ahead of the pack
At all times tries to increase its lead.
Concept 7: The Challenger
Attacks the leader because of large market share
Can also attack contemporaries and/or lower companies to gain their market share
Concept 8: The Follower
Doesn’t want to rock the boat.
Content with Market Share
Is there “for the ride.”
Concept 9: The Nicher
Serves small market segments not attacked by larger firms
Can command premium price due to specialized skills.
Concept 10: Balance
Balancing between customer and competitor is the smart way to go for companies