Analysis of Competition &

Market Strategies

Creating Competitive
Advantage
Competitive advantages require
delivering more value and
satisfaction to target consumers
than competitors do
Competitive marketing strategies are
how companies analyze their
competitors and develop valuebased strategies for profitable
customer relationships

Competitor Analysis
Competitor analysis is the process of
identifying, assessing, and selecting key
competitors

Competitor Analysis
Identifying Competitors

Competitors can include:

All firms making the same
product or class of products
All firms making products that
supply the same service
All firms competing for the
same consumer

Five Forces Determining Segment

Structural Attractiveness

Industry Concept of
Competition
Number of sellers and degree of
differentiation
Entry, mobility, and exit barriers
Cost structure
Degree of vertical integration
Degree of globalization

A Competitors
Expansion Plans

Customer Ratings of Competitors on

Key Success Factors

Strengths and Weaknesses

Share of market
Share of mind

Share of heart

Competitor Analysis
Selecting Competitors to Attack and Avoid

Strong or weak
competitors
Close or distant
competitors
Good or bad competitors

Hypothetical Market Structure

10%
20%
Market Market
Nichers Follower

30%
Market
Challenger

40%
Market
Leader

Competitive Strategies
Competitive Positions

Market follower
leader strategies
challenger
strategies
strategies

Competitive Strategies
Competitive Positions

Market leader is the firm with the

largest market share and leads the
market price changes, product
innovations, distribution coverage, and
promotion spending
Market challengers are firms fighting to
increase market share
Market followers are firms that want to
hold onto their market share
Market nichers are firms that serve
small market segments not being
pursued by other firms

Competitive Strategies
Market Leader Strategies
Expanding Total Demand

Expand total demand by

developing:
New users
New uses
More usage of its products

Six Types of
Defense Strategies

Market Challenger
Strategies
Define the strategic objective and
opponents
Choose a general attack strategy
Choose a specific attack strategy

General Attack Strategies

Frontal Attack

Flank Attack

Encirclement
Attack

Bypass Attack

Guerrilla Warfare

Pepsi buys Gatorade in a

Bypass Strategy

Specific Attack Strategies

Price discounts
Lower-priced
goods
Value-priced
goods
Prestige goods
Product
proliferation
Product
innovation

Improved
services
Distribution
innovation
Manufacturingcost reduction
Intensive
advertising
promotion

Market Follower Strategies

Counterfeiter
Cloner
Imitator
Adapter

Niche Specialist Roles

End-User Specialist
Vertical-Level
Specialist
Customer-Size
Specialist
Specific-Customer
Specialist
Geographic
Specialist

Product-Line
Specialist
Job-Shop Specialist
Quality-Price
Specialist
Service-Specialist
Channel Specialist

Balancing Orientations

CompetitorCentered

CustomerCentered