MKT004

ANALYZING COMPETITION AND

CREATING PRODUCT MODULE 15
STRATEGIES
Learning Target :

• Describe the forces which govern industry

competition

• Distinguish the basic strategies for product

competitiveness
What is Analyzing Competition?

— is a critical process for businesses and

organizations to understand their market position,
identify strengths and weaknesses, and make
informed strategic decisions.

— It involves evaluating the competitors operating in

the same industry or market, assessing their
offerings, performance, and strategies.
The Five forces (according to Michael Porter)

1. The Threat of New Entrants.

2. The Threat of Substitution.
3. The Bargaining Power of Suppliers.
4. The Bargaining Power of Customers.
5. Rivalry Between Current Competitors.
Seven major Barriers to Entry

■ Economic of scale
■ Product differentiation
■ Capital requirements
■ Switching cost
■ Access to distribution channels
■ Cost disadvantages independent of scale
■ Government policy
Strategic Options Marketing Mix Strategy
 Five Basic Strategies for Competing
through Products:

1) Competing through product proliferation

2) Competing through value
3) Competing through design,
4) Competing through innovation
5) Competing through services
SUMMARY
> Importance of Porter's Five Forces model:
• can help you to analyze the attractiveness of a particular
industry,
• evaluate investment options, and
• assess the competitive environment in your market
> Purpose of creating product strategy is to acts as a guide to
allow users to know what tasks they should complete in order
to achieve the business goals.