Product competitivnes analysis

Product - Product competitiveness analysis Class 4 Definition Comp etitiv eness It basica lly mea sures how far a company is away from its targ et

This preview shows pages 1–2. Sign up to view the full content.

C B Market share Profit share Product competitiveness analysis Class # 4 Definition Competitiveness : It basically measures how far a company is away from its target. 2 possible situations: Dominance : A > B { T A i > T B i i } . All the variables in A are “better” than in B. No dominance : A > C { T A i > T C i i } this is no more true, we cannot compare A and C we have to find some rules in order to interpret the relationship between A and C FIND a COMPETITIVE INDEX or use a REGRESSION MODEL. REGRESSION MODEL e.g.: C = degree of competitiveness C(A)= α T i = σ + α T i +z This mathematical approach is not able to give us any useful information. The parameter α identifies the weight of feature T i . It is misleading because a company can strategically decide to have a small α and so it cannot be considered a competitive disadvantage. (STOCCHETTI’S) SOLUTION 1. Make assumptions on the variables that affect competitiveness 2. Try to understand their

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/09/2010 for the course ECONOMICS CA taught by Professor Stocchetti during the Spring '10 term at UniversitÃ Ca' Foscari.

Page1 / 3

Product - Product competitiveness analysis Class 4 Definition Comp etitiv eness It basica lly mea sures how far a company is away from its targ et

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online