Top 10 Concepts

Dealing with Competition

Power Point Version

Rye Gutierrez
Ateneo Graduate School of Business

www.rye-gutierrez.blogspot.com 1
Outline:
Dealing with Competition…
Concept 1: Effective marketing strategies involve
studying competitors and competitive forces.
(who?)

Concept 2: The 5 Competitive Forces

Concept 3: Marketers need to identify competitors'

strategies, objectives, strengths and weaknesses.
(what?)

Concept 4: A company should identify competitors

by using both industry- and market-based analyses.
 Outline:
Dealing with Competition…

Concept 5: There are four roles that firms can play

in a market: the market leader, the market
challenger, the market follower, the market nicher.
Important to business success (why?)

Concept 6: If you are the market leader, you must

continuously innovate to retain and expand
position.
Concept 7: If you are the market challenger, you
must address areas that the market leader cannot
serve.
 Outline:
Dealing with Competition…

Concept 8: If you are the market follower,

you must know how to hold current
customers and win a fair share of new ones.

Concept 9: If you are the market nicher, you

must be a leader in a small market.
Concept 10: Companies should not overdo
emphasis on competitors.
Concept 1:
Marketingstrategies =
competitors + competitive forces.

 Building strong brands require a

keen understanding of
competition.

 Effective marketing strategies

involve studying competitors
and competitive forces.
Concept 2:

“May the Force be with you.”

The 5 Competitive Forces that determine the
long-term attractiveness of a market are:

 Industry Competitors
 Potential Entrants
 Substitutes
 Buyers
 Suppliers
Concept 3:

“Know thy neighbor.”

Marketers need to
identify competitors'
strategies, objectives,

strengths and

weaknesses.
Concept 4:

Identify Competitors
 A company should identify
competitors by using both
industry- and market-based
analyses.
 Is your competition the opposing
brand or the substitute product?
 Does the market prefer talking
on the phone over chatting?
Concept 5:

“Role Call”
There are four roles that firms can play in
a market:
2. the market leader
3. the market challenger
4. the market follower
5. the market nicher
Concept 6:

“Follow the Leader.”

 If you are the market
leader, you must
continuously innovate to
retain and expand
position.
 Unless there is a legal
monopoly, vigilance is a
must.
Concept 7:

Challenger
 If you are the market
challenger, you must
address areas that the
market leader cannot
serve.
 Market share can also
be gained from the
followers and nichers.
Concept 8:

Market Follower
 If you are the market follower,
you must know how to hold
current customers and win a fair
share of new ones.
 Preference of many companies
because less capital intensive.
 Tries to bring distinctive
advantages to its target market.
Concept 9:

Market Nicher
 If you are the market nicher,
you must be a leader in a small
market.
 Can command top dollar
because of specialized
skills/products.
 Strategy is effective for
both small and large firms.
Concept 10:

Balance
 Companies should maintain
a good balance of consumer
and competitor monitoring to
satisfy the needs of today's
global market.

 Companies should not

overdo emphasis on
competitors.
Summary:
Dealing with Competition is…

1. Necessary
2. Focused on consumers and
competitors
3. Depends on Market Position
4. Involves everybody (who?)
5. Changing
My Conclusion:
Dealing with Competition

Overcoming competition requires

attention to competitors

as well as consumers
Top 10 Concepts

Dealing With Competition

THE END

Rye Gutierrez
Ateneo Graduate School of Business

www.rye-gutierrez.blogpsot.com 17