Competitive EnvironmentEnterprise Strategy/AW/02a

Arj Wignaraja

1. Brand Competitors

Kotler’s Levels of Competitors

2. Industry Competitors

3. Form Competitors

4. Generic Competitors

Kotler’s Levels of Competitors – Example

Full serviceRestaurant

Grocery storeDeli

Prepared meals

Grocerystores

Movie theaters

Video rentals

Burgers

Fast Food

Prepared Food

Food & Entertainment

Information Required for Competitive Analysis

Products & Services

MarketingHuman

ResourcesOperations

Management Profiles

Sociopolitical TechnologyOrganizational

Structure

Competitive Intelligence

CapacityStrategy

Customer Value Analysis

Financial

Recorded Data

• Annual report & accounts

• Press releases• Newspaper articles• Analysts reports• Regulatory reports• Government reports• Presentations /

speeches

Observable Data

• Pricing / price lists• Advertising

campaigns• Promotions• Tenders• Patent applications

Opportunistic Data

• Meetings with suppliers

• Trade shows• Sales force meetings• Seminars /

conferences• Recruiting ex-

employees• Discussion with

shared distributors• Social contacts with

competitors

Sources of Competitor Data

Competitors Could Respond in 4 Different Ways – Kotler

1. The laid-back competitor

2. The selective competitor

3. The tiger competitor

4. The stochastic competitor

High Cost Structures will Intensify Competitor Response

Intensity of competitive

response

High unit costs

High fixed costs

High exit costs

The 4 Elements of National Competitive Advantage – Porter’s Diamond

Firm strategy, structure, and

rivalry

Related & supporting industries

Factor conditions

Demand conditions

Government

Chance

Strategic Implications of Porter’s Diamond

Compete in global

markets

Find a niche market at

home

Is advantage

world class?

Cluster giving competitive advantage

Yes

No

Strategy in Practice: Rise of the Korean Electronics Sector