What other brands have adopted a similar strategy

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Unformatted text preview: r its product. What other brands have adopted a similar strategy? WD40 Competitive Strategy Competitive Competitive Positions Positions Market Leader Market Market Challenger Challenger Market Market Follower Follower Market Nicher Option 1: challenge the market leader market High-risk but high-gain Sustainable competitive Sustainable advantage over the leader is key to success is Option 2: challenge firms of the same size, smaller size or challenge regional or local firms regional Full frontal vs. indirect Full attacks attacks Pepsi is an example of market challenger that has chosen to use a full frontal attack Competitive Strategy Competitive Competitive Positions Positions Market Leader Market Market Challenger Challenger Market Market Follower Follower Market Nicher Follow the market Follow leader leader Focus is on improving Focus profit instead of market share market Many advantages: Learn from the market leader’s experience experience Copy or improve on Copy the leader’s offerings the Strong profitability Dial Corporation successfully uses a market follower strategy Competitive Strategy Competitive Competitive Positions Positions Market Leader Market Market Challenger Challenger Market Market Follower Follower Market Nicher Serving market Serving niches means niches means targeting subsegments subsegments Good strategy for Good small firms with limited resources limited Offers high margins Specialization is key By market, customer, By product, or marketing mix lines mix Balancing Customer and Competitor Orientations Companies can become so competitor centered that they lose their customer focus. lose Types of companies: Competitor-centered companies Customer-centered companies Market-centered companies Game playing industry a. Nintendo a. Wii hyperlink Wii hyperlink b. b. Microsoft a. Xbox 360 c. Sony a. Play Station Threat of New Entry the existence of barriers to entry the barriers economies of product differences brand equity switching costs capital requirements access to distribution absolute cost advantages learning curve advantages expected retaliation government policies Competitive Rivalry number of competitors number rate of industry growth intermittent industry overcapacity exit barriers diversity of competitors informational complexity and asymmetry brand equity fixed cost allocation per value added level of advertising expense Supplier Power supplier switching costs relative to supplier firm switching costs degree of differentiation of inputs presence of substitute inputs supplier concentration to firm concentration ratio threat of forward integration by suppliers relative to the threat of backward integration by firms cost of inputs relative to selling price of the product Buyer Power buyer concentration to firm concentration buyer ratio bargaining leverage buyer volume buyer switching costs relative to firm switching costs buyer information availability ability to backward integrate availability of existing substitute products buyer price sensitivity price of total purchase Threat of Substitution buyer propensity to buyer substitute relative price performance of substitutes buyer switching costs perceived level of product differentiation...
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This note was uploaded on 10/09/2012 for the course BA 101 taught by Professor Lee.j.y during the Spring '00 term at 서강대학교.

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