DEALING WITH COMPETITION

OPENING CASE
 Strong Brands – Competitor tracking
 Global competitor – Sales growth

 Online competitor – Cost effective distribution

 Private labels – Low-price alternative

 Brand extensions – Move to new category.

 Telecom service providers – 70 – 80% growth

 More choice and competition

 More diversified tariff plans – Life time validity, free

talk time with new connections, Unlimited SMS etc.
 To gain Leadership and high Market share.
COMPETITIVE FORCES
 Threat of intense segment rivalry
 Threat of new entrants

 Threat of substitute products

 Threat of buyer’s growing bargaining power

 Threat of supplier’s growing bargaining power

ANALYZING COMPETITORS
 Strategies
 Strategic group
 Objectives
 Size, History, mgmt, financial situation.
 Profits, Sales, market share, cash flow, technological
leadership and Service leadership etc.
 Expansion Plan

 Strengths and Weaknesses

 Customer’s rating of competitors on KSFs.
 Share of Market, Mind and heart.
COMPETITIVE STRATEGIES
 Market Leader – 40%
 Market Challenger – 30%

 Market Follower – 20%

 Market Nichers – 10%

MARKET LEADER
 Expanding STRATEGIES
the total market
 New Customers
 Market-penetration strategy
 New-market segment
 Geographical expansion strategy
 More usage – amount, level or frequency
 Defending Market share
 Creative , anticipative and responsive marketers
 Position Defense
 Flank defense
 Preemptive defense
 Counteroffensive defense
 Mobile defense
 Contraction defense

 Expanding Market share

MARKET CHALLENGER STRATEGIES
 Defining strategic objectives and opponents
 General attack strategy
 Frontal attack
 Flank attack
 Encirclement attack
 Bypass attack
 Guerrilla attack
MARKET FOLLOWER STRATEGIES
 Counterfeiter
 Cloner

 Imitator

 Adapter

 Market nicher strategies

 Unique market, high profit margins etc.