Professional Documents
Culture Documents
Chapter 18
Creating Competitive Advantage
PEARSON
Objective Outline
Competitor Analysis
1 Discuss the need to understand competitors as well as
customers through competitor analysis.
Competitive Strategies
2 Explain the fundamentals of competitive marketing
strategies based on creating value for customers.
Objective Outline
Market
Service
share
leadership
growth
Technologic
Cash flow
al leadership
Identifying Competitors Strategies
A strategic group is a group of firms in an industry
following the same or a similar strategy in a given target
market.
Although competition is most intense within a strategic
group, there is also rivalry among groups.
It must always fulfill its value promise and work tirelessly to keep
strong relationships with valued customers.
Its prices must remain consistent with the value that customers see
in the brand.
But the best defense is a good offense, and the best response is
continuous innovation.
Expanding Market Share
It appears that profitability increases as a business gains
share relative to competitors in its served market.
And it has achieved this high share in its served market
because it does other things right, such as producing high-
quality products, creating outstanding service experiences,
and building close customer relationships.
Market Challenger Strategies
They can challenge the market leader and other
competitors in an aggressive bid for more market share
(market challengers). Or they can play along with
competitors and not rock the boat (market followers).
Although it might seem that the market leader has the
most going for it, challengers often have what some
strategists call a second-mover advantage.
The challenger observes what has made the market leader
successful and improves on it.
Market Follower Strategies
Competitor-
Customer-centered
Market-centered
centered company
company
company
A company whose moves are mainly based on competitors
actions
A company that focuses on customer developments in
and reactions.
OnAthe
company
designing its that
positive pays
marketing
side, thebalanced attention
strategies
company toa both
and delivering
develops customers
superior
fighter
and competitors
value target in
to itswatches
orientation, designing
customers.
for its marketing
weaknesses in its ownstrategies.
position, and
searches
Its a better position to identify
out competitors; new opportunities and set
weaknesses.
Onlong-run strategies
the negative side,that
the make sense.
company becomes too reactive.
The End