ENS 243 : TECHNOPRENEURSHIP
CREATING COMPETITIVE
ADVANTAGE
GROUP 4
TABLE OF CONTENT
01 INTRODUCTION
02 COMPETITOR ANALYSIS
03 COMPETITIVE ANALYSIS
04 BALANCING CUSTOMER AND
COMPETITOR ORIENTATIONS
COMPETITIVE ADVANTAGE
It is an advantage over competitors It is the process of identifying key
gained by offering consumers grated competitors; assessing their
value than competitors offer. objectives, strategies, strengths,
and weaknesses, and reaction
pattern; and selecting which
competitors to attack or avoid
CREATING COMPETITIVE ADVANTAGE
COMPETITOR COMPETITIVE BALANCING CUSTOMER
AND COMPETITOR
ANALYSIS STRATEGIES ORIENTATIONS
COMPETITOR ANALYSIS
It is the process of
COMPETITORS CAN INCLUDE:
identifying, assessing, and
selecting key competitors. All firms making the same
product or class of products
It uses this information as a All firms making products
point of comparison to identify that supply the same service
your company's strengths and All forms competing for the
weaknesses relative to each same consumer
competitor
STEPS:
STEPS IN ANALYZING COMPETITORS
2. Assessing competitors'
objectives, strategies, 3. Selecting which
1. Identifying the strengths and weaknesses, competitors to attack or
company's competitor and reaction patterns avoid
AVOID "Computer Myopia" Steps in Assessing Competitors: Steps:
When a company becomes so Determining Competitor's objectives Identify strong or weak
focused on its direct competitors that Identifying competitor's strategies competitors
it misses less obvious challengers,
allows niche companies to exist in Assessing competitor's strengths and weaknesses - Customer value analysis
the marketplace unchallenged, or Estimating competitor's reaction
underestimates new entrants to the Close or distant competitors
field. - Most companies compete
Types of Benchmarking:
against close competitors
Methods: Process - searching for the best way to
perform a process "Good" or "Bad" competitors
Industry point of
Internal - enables users to compare similar - The existence of
view activities within their own organization competitors offers several
Market point of view Competitive - organization is compared to strategic benefits
direct competitors or those who are selling
to the same customer base
Functional or Generic - enables users to
compare themselves to organizations that are
recognized as the best, whether they are in
the same industry or not
COMPETITIVE STRATEGIES
a set of policies and procedures that
a business uses to gain a competitive
advantage in the market.
3 STAGES OF APPROCHES TO
MARKETING STRATEGY
Entrepreneurial thinking
Formulated thinking
Entrepreneurial marketing
COMPETITIVE STRATEGIES MICHAEL PORTER'S FOUR BASIC
COMPETITIVE POSITIONING
STRATEGIES
OVERALL COST
LEADERSHIP
Lowest production and distribution
cost
DIFFERENTIATION
Creating a highly differentiated
product line and marketing program
COST FOCUS
GOALS: Effort is focused on serving a few
market segment
DIFFERENTIATION
FOCUS
Focus remains on features rather
than cost
COMPETITIVE STRATEGIES
Treachy and Wiersema's Basic Competitive
Strategies: Value Disciplines
PRODUCT LEADERSHIP
OPERATIONAL EXCELLENCE
Superior value via price and Superior value via product
convernience innovation
CUSTOMER INTIMACY
Superior value by means of building
strong relationships with buyer and
satisfying needs
COMPETITIVE STRATEGIES
COMPETITIVE POSITIONS
MARKET LEADER
MARKET CHALLENGER
MARKET FOLLOWER
MARKET NICHER
COMPETITIVE POSITIONS
MARKET LEADER
Expanding the total demand
Protecting market share
Expanding Market share
MARKET CHALLENGER
Challenge the market leader
Challenge firms of the same size or
smaller regional and local firms
Full frontal vs. indirect attacks
COMPETITIVE POSITIONS
MARKET FOLLOWER
Follow the market leader
Learn from the market leader's experience
Copy or improve on the leader's actions
MARKET NICHER
Serving market niches means targeting sub-
segments
Good strategy for small firms with limited
resources
Earns high margins rather than high volume
BALANCING CUSTOMER AND COMPETITOR
ORIENTATIONS
Companies can become so competitor centered that
they lose their customer focus
Types of Companies:
1. Competitor-Centered companies
2. Customer-Centered companies
3. Market-Centered companies
TYPES OF COMPANIES
COMPETITOR- CUSTOMER- MARKET-
CENTERED CENTERED CENTERED
COMPANIES COMPANIES COMPANIES
A competitor centered These companies focus on A company paying balanced
company is one that what customers need and or equal attention to its
spends most of its time how they want to interact customers as well as its
tracking competitors' with the business - not competitors in planning
moves and market shares the products, its its marketing strategies.
and trying to find features, or revenue Nowadays companies must
strategies to counter model. be market-centered,
them. This approach has observing both their
some pluses and customers and their
minuses. competitors.
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