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Competitive Strategy Models Explained

This document discusses several strategic models including Porter's 5 forces model for analyzing industry competition, the 7-S model for organizational design, and competitive strategies for market leaders and followers. It also covers concepts like brands, brand positioning, and the role of brands in simplifying decisions for consumers and protecting goodwill.

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0% found this document useful (0 votes)
34 views9 pages

Competitive Strategy Models Explained

This document discusses several strategic models including Porter's 5 forces model for analyzing industry competition, the 7-S model for organizational design, and competitive strategies for market leaders and followers. It also covers concepts like brands, brand positioning, and the role of brands in simplifying decisions for consumers and protecting goodwill.

Uploaded by

llllallll
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Strategy Models

All battles are won or lost long before the actual


battle.

- Art of War
Competitive Forces
Porter’s 5-Forces Model for long run
attractiveness of a market segment
– Threat of industry rivalry
– Threat of new entrants
– Threat of substitute products
– Buyer’s bargaining power
– Supplier’s bargaining power
Industry Competition
• Number of Sellers
• Entry and Exit Barriers
• Cost Structure
• Degree of Vertical Integration
• Degree of Globalization
Competitive Strategies
• For Market Leaders
– Expand the total market
• Get new users
– Increase Usage
• Packaging/Increase frequency of use
– Defend Market Share
• Continuous Innovation
– Expand Market Share
• Predatory Pricing
Competitive Strategies
• For Market Followers
– Counterfeiter
• Black Market
– Cloner
• Coolgate
– Imitator
• Roadies
– Adaptor
• Internet Exporer
7-S Model
Brands
• Brand is a name/symbol intended to identify and differentiate
the goods or services of one seller from competitors
• Role of Brands
– Simplify decision making and reduce risk for consumers
– Offers legal protection to company’s products and
goodwill
– Intangible asset
• Types
– Company, Product, Person, Service, Institution
• Brands as words
Brand Positioning
• Product Differentiation
– Quality, Product attributes
• Personnel Differentiation
• Channel Differentiation
• Image Differentiation
– Create value proposition
– Communicated mainly through advertising

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