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Chapter8DealingwithMarketingManagmentTenthEdition1ObjectivesIdentifyingCompetitorsEvaluatingCompetitorsCompetitiveIntelligenceSystemsCompetitiveStrategiesCustomervs.CompetitorOrientation2Induceyourcompetitorsnottoinvestinthoseproducts,marketsandserviceswhereyouexpecttoinvestthemost…thatisthefundamentalruleofstrategy.

BruceHenderson,FounderofBCGThereisnothingmoreexhilaratingthantobeshotatwithoutresult.

WinstonChurchill3FiveForcesDeterminingSegmentStructuralAttractivenessPotentialEntrants(ThreatofMobility)Buyers(Buyerpower)Substitutes(Threatsofsubstitutes)Suppliers(Supplierpower)IndustryCompetitors(Segmentrivalry)4BarriersandProfitabilityLow,stablereturnsLowHigh,stablereturnsHighLowLow,riskyreturnsHigh,riskyreturnsHighEntryBarriersExitbarriers5IndustryCompetitionNumberofSellers-DegreeofDifferentiationEntry,Mobility,ExitbarriersCostStructureDegreeofVerticalIntegrationDegreeofGlobalization6HighLowHighLowQualityVerticalIntegrationStrategicGroupsintheMajorApplianceIndustryGroupANarrowlineLowermfg.costVeryhighserviceHighpriceGroupDBroadlineMediummfg.costLowserviceLowpriceGroupCModeratelineMediummfg.costMediumserviceMediumpriceGroupBFulllineLowmfg.costGoodserviceMediumprice7AnalyzingCompetitorsCompetitorActionsObjectivesStrengths&WeaknessesReactionPatternsStrategies8Competitor’sExpansionPlansMarketsProductsIndividualUsersCommercial&IndustrialEducationalPersonalComputersHardwareAccessoriesSoftwareDell9HypotheticalMarketStructure&Strategies40%Marketleader30%Marketchallenger20%MarketfollowerExpandMarketDefendMarketShareExpandMarketShareAttackleaderStatusquoImitate10%MarketnicherSpecial-ize10DefenseStrategiesAttacker(3) Preemptive defense(4) Counter- offensive defenseDefender(1)Positiondefense(5)Mobiledefense(2)Flankdefense(6)Contractiondefense11OptimalMarketShareProfitabilityMarketshare0%25%50%75%100%Optimalmarketshare12AttackStrategiesAttackerDefender(3)Encirclementattack(4)Bypassattack(2)Flankattack(5)Guerillaattack(1)Frontalattack13SpecificAttackStrategiesPrice-discountCheapergoodsPrestigegoodsProductproliferationProductinnovationImprovedservicesDistributioninnovationManufacturingcostreductionIntensiveadvertisingpromotion14“Nichemanship”End-userspecialistVertical-levelspecialistCustomer-sizespecialistSpecific-customerspecialistGeographicspecialistProductorproduct-linespecialistProduct-featurespecialistJob-shopspecialistQuality-pricespecialistServicespecialistChannelspecialist15BalanceCompetitionCustomer+Fighterorientation+Alert+Exploitweaknesses-Reactive+IDopportunities+Long-runprofit+Emergingneeds&g

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