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