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Presentation on Competitor Advantages Presented To:
Presented By:


The Friends Group MBA 1st Morning

Group members
Muhammad Haroon 10607 Farhan Adeel 10580 Farman Ali 10609 Muhammad Haroon 10618

Creating Competitive Advantages
Competitor Analysis Competitive Strategies Balancing Customer and Competitor Orientation

Competitive Advantages
Defination An advantage over competitors gained by

offering consumer greater value either through, Lower price or by Providing more benefits that Justify higher prices


Competitor Analysis
• The process of identifying key competitor • Assessing their objectives Strategies, strength & weaknesses & Reaction patterns • Selecting which competitors to attack or avoid

Identifying competitors
• Companies identifying their competitors • Similar services • Same customer

Competitor Myopia
• • • • Short sightedness of any organization They focus only one product Companies must avoid it Customer want satisfaction

• Major competitors are


Assessing competitor
 Determining competitor objectives Monitoring various segments

New technology
 Growth share

Identifying Competitors’ Strategy
• • • • Features Product Quality Pricing policy Sales force strategy

Assessing competitor strength & weakness
• What can our competitor do? • Gathering data • Bench marking

Bench marking
• The process of comparing the companies product and processes to those of competitors leading firms in other industry way to improve quality and performance • Powerful tool for increasing a company’s competitiveness.

Estimating Competitors’ Reactions
• • • • What will our competitor do? Competitor objectives Competitor Strategies Competitor Strength & weakness

Selecting competitor to attack & avoid
Strong or weak competitors
• • • • • Focus on several competitors Aim shots at weak competitors They have fewer resources Customer value analysis They should compete with strong competitors

Close or Distant Competitors • Compete with close competitor rather than distant competitors • They should compete with distant competitors not close • Wall mart & k mart

 Good or Bad Competitors • Should support good competitors • Attack bad competitors • Good competitors play industry’s rules • Good competitor play by rules • Bad competitor break the rules

Designing a competitive intelligence system
• • • • • Company must design intelligence system Collect secondary data Each and every information Validity and reliability Weaknesses and strength

Competitive Strategies
Approaches to Marketing Strategy
Define different strategies

Large formal strategies

Entrepreneurial Marketing Formulated Marketing Intrepreneurial Marketing

Entrepreneurial Marketing
Knock on every door to gain attention. No need of Advertisement. Example : Milk Made

Formulated Marketing
Small Companies. Involvement of sales people. Example : SHAN & NATIONAL

Intrepreneurial Marketing
Large & small companies. Customer Centered Approach.

Basic Competitive Strategies Six main Strategies
Over all Cost Leadership Differentiation Focus Operational Excellence Customer Intimacy Product Leadership

Over All Cost Leadership
Here the company show hard work to decrease the production & distribution cost. Low cost & low price then its competitor & win a large market share.

 Here the company concentrate on creating a highly differentiated product line & marketing program.

Example: Nokia

 Here the company focuses its effort on serving a few market segments well rather than going after the whole market.

Example : Ferrari & Auston Martin

Operational Excellence
Companies provides superior value Reduce cost Customer wants quality product & reliable goods cheaply& easily Example :

Customer Intimacy
Company provides superior value by precisely segments. It Builds detailed customer Database. Example : Rolex watches

Product Leadership
 Here company provides superior goods with best quality &in low price. it aims to make its own & competing products obsolete. Example :

Competitive Position
• • • • Market Leader Market Challenger Market Follower Market Nicher

Market leader strategies
• Expend total market • Protect market share • Expend market share

Expend total market
 Expend market by • Developing new users • Discovering and promoting new uses • Convincing people for more usage

Protecting market share
• • • • What to do for market position Avoid weakness Fulfill value promise Constant price Strong customer relationship

Expanding Market Share
Increasing sales • Improve profitability • Close customer relationship • Giving high quality product & services •

Market Challenger Strategies
To Keep Market share

Market Challenger Strategies
To Put small companies out of business How to attack on competitor?

Market Follower Strategies

Good product coppied by leader Copy of the leader Keep your customer in mind

Market Nicher Strategies
Specialize in serving customer

Why niching is profitable Specific customers

Market Nicher Strategies

Balancing Customer and Competitor Orientations

competitor customer

Competitor Centered Company
Definition: “A company whose moves are mainly based on competitor actions and reactions”. Track competitor Find his strategies Find his weakness

Customer Centered Company
 Defination: “A company that focuses on customer developments in designing its marketing strategies and on delivering superior value to its target customers”.  Focus on Customer Development  Customer need  Superior value

Market Centered Company
Defination: “A company that pays balanced attention to both customers and competitors in designing its marketing strategies”. Watch both customer and competitors

Customer centered

Competitor centered

No No


Product orientation

Customer orientation

Competitor orientation

Market orientation