FACTORS THAT

INFLUENCE
THE LIKELIHOOD
OF RIVAL’S ATTACK
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CRISTINE JOY F.FERRER

 WHAT IS
COMPETITION
s. We can build these lessons together and I am happy to model, co-teach, observe, and/or provide feedback to help you
succeed!

IN BUSINESS?
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 THE ATTACK IN THE MARKET IS
s. We can build these lessons together and I am happy to model, co-teach, observe, and/or provide feedback to help you
succeed! PRESENT IN ALL FIRMS, AND
COMPETITORS WILL ALWAYS FIND WAYS
TO PENETRATE THE MARKET WITH
THEIR PRODUCT AND SERVICES.
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 THE LIKELIHOOD OF ATTACK CAN E GROUPED INTO
THE FOLLOWING STRATEGIES:

➔ PIONEERING
s. We can build INCENTIVE
these lessons together STRATEGY
and I am happy to model, co-teach, observe, and/or provide feedback to help you
succeed!
➔ ORGANIZATIONAL SIZE STRATEGIES
➔ PRODUCT QUALITY STRATEGIES
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 1. PIONEERING INCENTIVE STRATEGY
s. We can THE PIONEERING
build these INCENTIVES
lessons together STRATEGY
and I am happy to model, COULD
co-teach, observe, and/or provide feedback to help you
succeed! BE CLASSIFIED INTO TWO.

● PIONEER OR FIRST MOVER STRATEGY

● IMITATORS OR SECOND MOVER STRATEGY
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 A. PIONEER OR FIRST MOVER STRATEGY
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THESE FIRMS INITIATE COMPETITIVE ACTION IN ORDER TO BUILD COMPETITIVE

ADVANTAGE IN ORDER TO IMPROVE MARKET POSITION.

THE BENEFIT OF BEING SUCCESSFUL AS INITIATOR OR FIRST MOVER CAN BE

SUBSTANTIAL ESPECIALLY IN PRODUCTS THAT CATER IN FAST-CYCLE MARKETS.
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 THE FIRST MOVERS HAVE THE FOLLOWING
ADVANTAGES:
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succeed!
● CONSUMER’S LOYALTY TO THE PRODUCT IS DEVELOPED.

● SATISFIED CUSTOMER BECAME COMMITTED TO THE PRODUCT.

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 B. IMITATORS OR SECOND MOVER STRATEGY
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Second movers are companies that respond to a first mover's competitive action, often
succeed!
through imitation or a move designed to counter the effects of the (first mover's) action.

The second mover studies the success and failure of the first mover and develops processes
and technologies that may be superior in creating customer value.
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 THE IMITATORS OR SECOND MOVER’S
ADVANTAGES ARE:
● AVOID THE PROBLEMS AND MISTAKES OF THE PIONEERS OR THE FIRST
MOVER.
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succeed!

● DEVELOP TECHNOLOGIES AND EFFICIENCY THAT ARE MORE SUPERIOR.

● CREATE PRODUCTS THAT CREATES CUSTOMER VALUE.

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 2. ORGANIZATIONAL SIZE STRATEGIES
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on competitive
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dynamics.
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 ORGANIZATIONAL SIZE STRATEGIES

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smaller to help you
succeed! competitors. Big companies used to set on their laurels confident that the competitors could
not easily overtake their size.

However, smaller competitors may be more nimble and innovative. Smaller organizations
that are aggressive enough to increase their market niche are more likely to launch
competitive actions. Smaller firms tend to be quicker, nimbler, and flexible competitors.
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 THE COMPETITIVE STRATEGIES OF SMALLER
FIRMS AGAINST ITS BIG RIVALS ARE:
A. Lower
s. We can build investment
these lessons together cost in research
and I am and development.
happy to model, co-teach, observe, and/or provide feedback to help you
succeed!
B. Lower fixed and overhead expenses.
C. Technology and resource base through imitation.
D. Quicker and flexibility in action and response.
E. Lower product price with new features.
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 3. PRODUCT QUALITY STRATEGIES
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succeed!
Quality is the byword in competitive strategy. It is the production of goods
or services with no defects involving a never-ending cycle of continuous
improvement.
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 QUALITY IN DIFFERENT PERSPECTIVES
● In
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together and referstotomodel,
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co-teach, products
observe, and/or that exceed
provide feedback to help you
succeed! customer expectations.
● For corporate perspective, quality is an outcome of how the firm complete the cycle of
the primary and support activities that develops customer satisfaction that gives the firm
the desired return on investments.
● In the eyes of the customer, quality means doing the right things relative to performance
measure that are important to them.
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 QUALITY is the primary reason to stay in the market. It is now the
universal theme in the global industry and the basic condition for
s. We can build these lessons together and I am happy to model, co-teach, observe, and/or provide feedback to help you
succeed!
sustained competitive success.

It is the vehicle for sustained credibility among its customer as it is

the possible options in the development of customer’s patronage and
loyalty.
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 CUSTOMER’S PERCEPTION OF QUALITY
PRODUCTS
A. Performance-
s. We can build these lessonsittogether
refers to its operating
and characteristics.
I am happy to model, co-teach, observe, and/or provide feedback to help you
succeed! B. Product Features- it refers to important special characteristics.
C. Flexibility- it refers to meeting operating specifications over some period in time.
D. Conformance- it refers to matching the pre-established standards.
E. Durability- it refers to the amount of use before it ware out or deteriorate
F. Aesthetics- it refers to how the products looks and feel in the use of the user.
G. Serviceability- It refers to the ease and speed of repair when it is breakdown.
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 TOTAL QUALITY MANAGEMENT (TQM)
TQM is a managerial strategy of innovations that emphasizes the organization’s total commitment to customer’s
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to model, order to sustain
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development of quality
provide products
feedback to help you
succeed! to its customers.

FIRMS THAT IMPLEMENTED TQM STRATEGIES RESULTED IN THE FOLLOWING ADVANTAGES:

A. Increase in customer satisfaction

B. Cut down cost by 20 percent
C. Reduce down time cost in product innovation and processing
D. Increase productivity of workforce
E. Greater incentives for work teams.
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 The quality strategy affects the competitive rivalry and its competitive
advantage.
The following factors will results due to poor quality products:
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succeed!
A. Poor quality products cause decline in sales volume
B. Credibility in the market could not be easily corrected
C. Loss of customer patronage and loyalty.
D. Image building would take time to correct
E. Greater loss in profit margin
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 COMPETITORS IN THE INDUSTRY WILL ALWAYS LOOK AT THE QUALITY OF THE
RIVAL’S PRODUCTS AND THE INNOVATIONS THAT IS BEING INTRODUCED TO
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andCUSTOMER’S SATISFACTION.
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ARE QUALITY CONSCIOUS AS THEY WANT PRODUCTS THAT IS WORTH THEIR
succeed!
HARD EARNED PESO.

THE RACE FOR QUALITY IS THE BYWORD OF RIVAL FIRMS IN THE INDUSTRY AS
THE MARKET LEVEL OF CUSTOMER SATISFACTION BECOMES HIGHER IN THIS
NEW GENERATION. THE DEVELOPMENT OF COMPETITIVE ADVANTAGE RESTED
WITH QUALITY PRODUCTS. NO FIRMS CAN SURVIVE COMPETITION IF THE
QUALITY OF THEIR PRODUCTS REMAINED AT LOW LEVELS.
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THANK
YOU!
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