Dealing With Competition

Chapter 9

Competitive Forces

Industry Concept of Competition

• Number of sellers and degree of differentiation• Pure Monopoly• Oligopoly• Monopolistic competition• Pure Competition

• Entry, mobility, and exit barriers• Cost structure• Degree of vertical integration• Degree of globalization

Market Concept of Competition

• Marketing Myopia• Competitors Map

Analyzing Competitors

• Strategies• Objective• Strengths and Weaknesses

• Share of Market • Share of Mind • Share of Heart

• Selecting Competitors• Strong Vs Weak• Close Vs Distant• Good Vs Bad

Hypothetical Market Structure

10%MarketNichers

20%Market

Follower

30%Market

Challenger

40%MarketLeader

Competitive Strategies for Market Leaders

Expanding the total market

•New Customers•More Usage

Defending the Market Share•Continuous Innovation•Responsive Marketer•Anticipative Marketer•Creative marketer

Expanding market Share

Competitive Strategies for Market Leaders

• Six types of Defense Strategies

Other Competitive StrategiesMarket Challenger Strategies

DefenderAttacker

4. Bypass Attack2 Flank Attack

1 Frontal Attack

3 Encirclement attack

5 Guerrilla attack

Specific Attack Strategies

• Price discounts• Lower-priced goods• Value-priced goods• Prestige goods• Product proliferation

• Product innovation• Improved services• Distribution innovation• Manufacturing-cost

reduction• Intensive advertising

promotion

Market Follower Strategies

Counterfeiter

Cloner

Imitator

Adapter

Market–Nicher Strategies

• Creating Niches• Expanding Niches• Protecting Niches