2 - Chapter 3 Understanding the Competitors Objectives and...

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11/30/09 Chapter 3 - Competitor Analysis Chapter Three “There is one rule for industrialists and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible.” - Henry Ford
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11/30/09 Chapter 3 - Competitor Identification Customer-Based Approaches Customer choices – What brand would you buy if your favorite was unavailable? Application associations – What applications? What brands for each application? What product substitutes?
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11/30/09 Chapter 3 - Competitor Identification Strategic Groups Pursue similar competitive strategies Have similar characteristics Have similar assets and competencies
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11/30/09 Chapter 3 - Competitor Analysis Potential Competitors Market expansion Product expansion Backward integration Forward integration Export assets or competencies Retaliatory or defensive strategies
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Unformatted text preview: 11/30/09 Chapter 3 - Understanding the Competitors Objectives and Commitment Image and Positioning Size, Growth & Profitability Current and Past Strategies Strengths and Weaknesses Cost Structure Exit Barriers Organization and Culture Competitor Actions Figure 11/30/09 Chapter 3 - The Value Chain Source: Reprinted with permission ã 1985 Michael Porter Margin Service Operatio ns Outboun d Logistics Inbound Logistics Marketin g & Sales Primary Activities Support Activities Firm Infrastructure Human Resource Management Technology Development Procurement 11/30/09 Chapter 3 - Cola Wars: Coca-Cola vs. PepsiCo Discussion Questions • How do they each define their markets? Same? • What are each company’s strengths? How did the other respond to those? Why? • What are each company’s vulnerabilities? Did the other capitalize on those? Why?...
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2 - Chapter 3 Understanding the Competitors Objectives and...

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