9 Chapter
9 Chapter
9 Chapter
SUMMARY by
Chapter
Technological
is a bypass strategy practiced in high-tech industries. The challenger patiently researches and develops the next technology and launches an attack, shifting the battleground to its
costumers which often lowers costs and can manipulate prices and costs in different parts of the value chain.
is the art of learning from companies that perform certain tasks leapfrogging Benchmarking better than other companies.
Identifying Competitors
Entry, Mobility, And Exit Barriers Cost Structure Degree Of Vertical Integration Degree Of Globalization
territory, where it has Industry Concept Number Of Sellers And Degree Of Differentiation an advantage.
Marketing Concept According to marketing approach, competitors are companies that satisfy the same customer need. The market concept of competition reveals a broader set of actual and potential competitors. By mapping the buyer's steps in obtaining and using the product a company's direct and indirect competitors can be identified.
Trends
Selecting Competitors:
Strong versus Weak: Weak require fewer resources per share point gained. The firm should also compete with strong competitors to keep up with the best.
Three Important Variables for analyzing competitors Share of market - The competitor's share of the target market. Share of mind - The percentage of customers who named the competitor in responding to the statement, "Name the first company that comes to mind in this industry." Share of heart - The percentage of customers who named the competitor in responding to the statement, "Name the company from which you would prefer to buy the product." Companies that make steady gains in mind share and heart share will inevitably make gains in market share and profitability.
Close versus Distant: Most companies compete with competitors who resemble them the most
"Good" versus "Bad": should support its good competitors (Play by the rules) and attack its bad competitors.
The nicher achieves high margin, whereas the mass marketer achieves high volume. Nichers some things from the have three tasks: creating niches, expanding niches, and protecting niches. Because niches can weaken, the firm must continually create new ones therefore multiple niching is leader but maintains preferable to single niching. The key idea in successful nichemanship is specialization. Here are some possible niche roles: differentiation in End-user specialist: The firm specializes in serving one type of end-use customer. terms of packaging, Customer-size specialist: The firm concentrates on selling to small, medium-sized, or large customers. advertising, pricing, Geographic specialist: The firm sells only in a certain locality, region, or area of the or location. world. Product-feature specialist: The firm specializes in producing a certain type of Adapter - takes the product or product feature leader's products and Quality-price specialist: The firm operates at the low- or high-quality ends of the market adapts or improves Channel specialist: The firm specializes in serving only one channel of distribution
them.