Embed Size (px)
Citation preview
Marketing Management
Competitive Threats
Paul Dishman, Ph.D.Department of Business Management
Marriott School of Management
Brigham Young University
Lecture 20
Paul Dishman, Ph.D.
Marketing Management
Western Approach to Strategy
• Find Strengths to Match Opportunities
• “The most profitable match of company strengths with opportunities presented by the marketplace which would provide long-term advantage.”
Paul Dishman, Ph.D.
Marketing Management
Porter’s Model
• Competitive Advantage: Creating and Sustaining Superior Performance, Michael E. Porter, Free Press, 1985
Paul Dishman, Ph.D.
Marketing Management
Porter’s Model
Competitive Advantage
CompetitiveScope
BroadTarget
Lower Cost
NarrowTarget
Differentiation
1. Cost Leadership 2. Differentiation
3A. Cost Focus 3B. DifferentiationFocus
Paul Dishman, Ph.D.
Marketing Management
Kotler Model
• Market Leader
• Market Challenger
• Market Follower
• Market Nicher
Kotler, 1996
Paul Dishman, Ph.D.
Marketing Management
Market Leader Strategies
• Expanding the Total Market– New Users– New Uses– More Usage
• Protecting Market Share
Paul Dishman, Ph.D.
Marketing Management
Protecting Market Share
• Position Defense
• Flanking Defense
• Preemptive Defense
• Counteroffensive Defense
• Contraction Defense
Paul Dishman, Ph.D.
Marketing Management
Position Defense
X X X X X X X
O O O O O O O
X X
Paul Dishman, Ph.D.
Marketing Management
Flanking Defense
X X X X X X X
O O O O O O O
X X
Paul Dishman, Ph.D.
Marketing Management
Preemptive Defense
X X X X X X X
O O O O O O O
X X$
<- Distributors
Paul Dishman, Ph.D.
Marketing Management
Counteroffensive Defense
X X X X X X X
O O O O O O O
X X
Paul Dishman, Ph.D.
Marketing Management
Contraction Defense
Paul Dishman, Ph.D.
Marketing Management
Market Challenger Strategies
• Frontal Attack
• Flanking Attack
• Encirclement Attack
• Bypass
• Guerrilla Attack
Paul Dishman, Ph.D.
Marketing Management
O O O O O O O
Frontal Attack (Pepsi to Coke)
X X X X X X X
X X
Paul Dishman, Ph.D.
Marketing Management
Flanking Attack
X X X X X X X
O O O O O O O
X X
O O O
Paul Dishman, Ph.D.
Marketing Management
X X X X X X X
O O O O O O O
X X
O O O
Encirclement Attack
Paul Dishman, Ph.D.
Marketing Management
Bypass (Canon)
X X X X X X X
O O O O O O O
Xerox X
O O O O
O
Paul Dishman, Ph.D.
Marketing Management
Guerrilla Attack (Formula 409)
Paul Dishman, Ph.D.
Marketing Management
Market Follower Strategies
• Cloner- Imitator- Adapter
Paul Dishman, Ph.D.
Marketing Management
Market Nicher Strategies
• Low Volume, High Margin
• Specialization– End-Use– Vertical-Level– Customer-size– Specific-customer– Geographic– Product or feature– Quality-price– Service
Paul Dishman, Ph.D.
Marketing Management
Treacy & Wiersema Model
• The Discipline of Market Leaders: Choose Your Customers, Narrow Your Focus, Dominate Your Market, Michael Treacy & Fred Wiersema, Addison-Wesley, 1995
Paul Dishman, Ph.D.
Marketing Management
Treacy & Wiersema Model
• Operational Excellence
• Product Leadership
• Customer Intimacy
