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

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

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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

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