1.formulation of competitive strategies
TRANSCRIPT
What sets an organization apart -- competitive edge
Controlling or having something others do not have
Doing something better than other organizations
Doing something other organizations cannot do
Competitive strategies are designed to exploit an
organization’s competitive advantage Implies there are other competitors also trying to
develop competitive advantage & attract customers Competitive advantage can be eroded easily (& often
quickly) by rival’s actions
When organizations battle for some desired object or outcome
▪ Customers
▪ Market share
▪ Survey rankings
▪ Needed resources
Hyper-competition ▪ A situation of intense and continually increasing levels of
competition in today’s business environment
(1) Industry perspective
Identifies competitors as firms that are making the same products or providing the same service
Describes industries according to number of sellers & the similarities or differences in the products or services
▪ The number of sellers & level of product-service differences will affect how intensely competitive the industry is
Supply Side
(2) Marketing perspective
Competitors are firms that satisfy the same customer needs
How similar are the benefits that customers derive from the products and services that other firms offer?
Intensity of competition depends on
▪ How well the customer need is understood or defined
▪ How well different firms are able to meet that need
Demand Side
Industry
Same
Product-Service
Market
Customer
Needs
(3) Strategic Group Perspective
Competitors are firms that follow similar strategies
Strategic group is a set of firms competing within an industry that have similar strategies & resources
A single industry could have a few or several strategic groups depending on what strategic factors are important to different group of customers
Strategic Group Perspective (cont’d)
Firms in same strategic group have two or more competitive characteristics in common
▪ Sell in same price/quality range
▪ Cover same geographic areas
▪ Be vertically integrated to the same degree
▪ Have comparable product line breadth
▪ Emphasize same types of distribution channels
▪ Offer buyers similar services
▪ Use identical technological approaches
• Group of firms pursuing same or similar strategy with similar resources – Although McDonald's and Subway are both
in the fast food business, they don’t really take into account what the other is doing before formulating their strategies...
– On the other hand, Burger King and McDonald's have a lot in common – both have a similar strategy of serving low priced fast food to the average family
Possible strategic dimensions for identifying strategic groups Price
Quality
Geographic scope
Product line breadth-depth
R&D expenditures
Product characteristics
The purposeful and coordinated monitoring of your competitor(s)
QUESTIONS Where do they add customer value? Do they offer higher quality, lower price, better service, or excellent credit terms? Which customers are your competitors most interested in? Do they seek your best customers, the ones you don’t want, or do they go for everyone? What is their cost base and liquidity? How much cash and working capital do they have? Are their suppliers better than yours? Are they less exposed with their suppliers than your firm? What do they intend to do in the future? Do they have a your market segments targeted? Are they committed to growth? How will their activity affect your strategies? Should you adjust your plans and operations? Do either of you have a competitive advantage in the marketplace? How much better than your competitor do you have to be to attract customers? Will new competitors emerge over the next few years? Who is a potential new entrant? If you were a customer, would you choose your product over those offered by others? What irritates your current customers?
Every firm has resources & work processes Systems to do whatever it’s in business to do
But not every firm is able to Effectively exploit its resources & capabilities
Obtain resources & capabilities it needs
Some firms are able to “pull it together” & develop
distinctive capabilities, others don’t Competitive advantage implies gaining the edge on
others – using resources & capabilities As firms strive for sustainable CA, stage for competition
is set - intense, moderate or low
What is competitive strategy? • Consists of business approaches to
– Attract customers by fulfilling their expectations
– Withstand competitive pressures
– Strengthen market position
Exploits competitive advantage by ▪ finding ways to use resources & capabilities to set firm
apart from competitors
Anjali Mukerjee’s Health Total (AMHT)is an 8-year old, Rs. 3 crore company in the market for health/fitness programmes. The company offers two related product lines: 3 health programmes and 9 health foods in the form of snacks.
The brand aims at delivering 2 major promises: health and beauty through health. It has thus positioned itself on a ‘health and beauty through nutrition’ platform, distinguishing itself from other fitness programmes such as Talwalkars, VLCC, etc. It caters to Sec A1,A, and B customers through 4 centres in Mumbai and 2 in New Delhi.
In addition to the new products it is planning for delivering beauty through the health route, the company sees opportunities in preventive health care and is aiming at growth through collaboration in this area, expanding its presence into at least the top 10 Indian cities.
The market for health/fitness and beauty programmes straddles the health care and the beauty industries, and is highly fragmented in structure. The health-and-fitness market may be segmented as below in terms of consumer perceptions:
Health programmes such as AMHT
National level fitness programmes such as Rama Bans, VLCC, Talwalkar’s
Smaller local players in different parts of the country, of which there are scores Though there is a fair amount of overlap between ‘health programmes’ and ’beauty programmes’,
some programmes such as Shahnaz Hussain’s and Jamuna Pai’s have been able to acquire a distinct consumer perception as ‘exclusively beauty oriented programmes’. The health/fitness and beauty programmes attract a lot of indirect competition from yoga and meditation pragrammes like Siddh Samadhi Yoga & from Ayurvedic Centres, gyms, and the like. This unstructured and fragmented nature of the market makes it difficult to guess its size and growth
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Value Chain Analysis Identifying Resources and Capabilities That Can Add Value
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Value Chain Analysis Identifying Resources and Capabilities That Can Add Value
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Value Chain Analysis Identifying Resources and Capabilities That Can Add Value
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Value Chain Analysis Identifying Resources and Capabilities That Can Add Value
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Value Chain Analysis Identifying Resources and Capabilities That Can Add Value
• Competitive advantage will arise through: – Providing buyer value comparable to competitors
by performing value chain activities more efficiently – cost based advantage
and / or
– Performing value chain activities in unique ways that create greater buyer value than competitors and hence command a premium price – differentiation based advantage
Competitive advantage arises from one of two sources:
Performing the same activities as competitors, but at a lower cost
Performing a different set of activities or activities that are perceived as unique in the industry, and charging a premium
Another important factor is the scope of the product-market (broad or narrow)
Mix of these factors provide basis for
Cost leadership strategy (low-cost strategy)
Differentiation strategy
Focus strategy
Market Scope
Competitive Advantage
Low Cost Differentiation
Broad
Narrow
Cost Leadership Differentiation
Focus (Low Cost)
Focus (Differentiation)
Differentiation of products and selling them at a premium
price
Producing products at a lower price than
competitors
Targeting the whole market with the chosen strategy
Targeting a specific segment of the market
Differentiation:
Deliver unique & superior value in terms
of product quality, features, service
Cost:
Design, produce & market more
efficiently than competitors
Determine your Competitive Scope: Number & Nature of segments you will compete in
Strategy focus: organize value adding activities to be the lowest cost producer of a product in an industry Low cost implies OVERALL LOW COST
Also, product quality cannot be ignored
Champion frugality Strict attention to production controls Rigorous use of budgets Limited market segmentation Emphasis on productivity improvements Distinctive capabilities found in
manufacturing & materials management
A cost leader does not try to be an industry innovator
The overriding goal is- increased efficiency & lower costs relative to rivals
All functional strategies & capabilities are directed at efficiency
Will seek to minimize costs in marketing, R&D & production Every strategic decision is aimed at keeping cost as low as
possible Doesn’t have deep & wide product lines Market products aimed at “average” customer Little product differentiation: Little or no product frills
or differences
– Price competition is vigorous
– Product is standardized or readily available from many suppliers
– There are few ways to achieve differentiation that have value
– Most buyers use product in same ways
– Buyers incur low switching costs
– Buyers are large and have significant bargaining power
Higher profits resulting from charging prices below that of competitors, because unit costs are lower Even at same price more efficient cost leader generates
greater profitability
Increase in market share and sales by reducing the price below that charged by competitors (assuming price elasticity of demand)
Is a barrier to entry for competitors trying to enter
the industry
Analysis of the value chain identifies where cost savings can be made in the various parts and links
With a cost leadership strategy, the value chain must be organized to: Reduce per unit costs by copying, rather than original
design, using cheaper resources, producing basic products, reducing labor costs and increasing labor productivity
Achieve economies of scale by high-volume sales
Using high-volume purchasing to get discounts
Locating where costs are low
Cost Leadership
1. Economies of scale through utilization of excess
capacity
2. Automation / utilization of robotics in manufacturing processes
3. Development of efficient distribution networks
4. Implementation of TQM (Total Quality Management) initiatives
• Being overly aggressive in cutting price • Low cost methods are easily imitated by rivals • Becoming too fixated on reducing costs
and ignoring
– Buyer interest in additional features (tastes)
– Declining buyer sensitivity to price
– Changes in how the product is used
• Technological breakthroughs open up cost reductions for rivals
Differentiation strategy focuses on changing customer perception about a product, i.e., that the product is superior to other products Based on actual superiority (superior features) or perceived superiority
Offer products/services that create value to customers
Offer products/services not easily matched or easily copied by rivals
Not spending more to differentiate the firm’s products or service than the price premium that can be charged
• Unique taste -- KFC
• Special features – Nissan Micra
• Superior service -- FedEx, Aquaguard
• Spare parts availability -- Maruti
• More for your money -- McDonald’s, Wal-Mart
• Quality manufacture -- Honda , Toyota
• Technological leadership -- 3M Corporation, Intel, Apple
• Top-of-the-line image -- Ralph Lauren, Chanel
Every strategic decision & action is directed at setting the firm apart from competitors
All functional strategies & capabilities are aimed at isolating & understanding specific market segments & developing product features that are valued by customers
Has broad and wide product lines -- many different models, features, price ranges, etc.
Has many market segments & product features
Controls costs but not as rigorous as the cost leader to preserve source of differentiation
Competitive capabilities tend to be in
marketing and research & development
Will have significant expenditures in R&D & production….
Because you want to make high quality/highly desirable product
Will have significant expenditures in
marketing…
Because you need to create maximum awareness & brand equity
• When there are many ways to differentiate a product and appeal to customers
• Buyer needs and uses are diverse • Few rivals are following a similar type of
differentiation approach • Technological change is fast-paced
and competition is focused on evolving product features
Products will get a premium price
Demand for products is less price elastic than that for competitor’s products
Builds Brand Loyalty
It is an additional barrier to entry for
competitors to enter the industry
… as you develop greater brand equity —through increased product quality & awareness ….
You develop greater brand loyalty….
The greater the loyalty.. the less the price sensitivity
Analysis of value chain identifies the parts through which superior products can be created and customer perception may be changed
With differentiation strategy, the value chain must be organized to: Create products that are superior to competitors’ products
in design, technology, performance, etc. Offer superior after-sales service Have superior distribution channels Create a strong brand name Create distinctive or superior packaging
Differentiation
1. Developing innovative products/services to
broad range of customers 2. Significant investments in R&D 3. Capability to generate a series of successful
new products over time
Difficulty in maintaining long-term distinction in customers’ eyes
Agile competitors can quickly imitate
Expense of maintaining premium
pricing– requires greater marketing costs
• Trying to differentiate on a feature buyers do not perceive as valuable
• Not understanding what customers want or prefer and differentiating on the “wrong” things
• Low-cost strategy can defeat a differentiation strategy when customers are satisfied with a standard product and do not see extra attributes as worth paying for!
• Over-differentiating such that product features exceed customers’ needs
• Charging a price premium that customers perceive is too high
Targets a segment of the product market, rather than the whole market or many markets
Segment is determined by the bases for segmentation Geographical area
Type of customer -- specific group of customers
Specific & specialized product line
Within the segment, either cost leadership or differentiation strategy is used
Approach 1: Cost Advantage
Achieve lower cost than rivals in serving the specific or narrow segment
Approach 2: Differentiation Advantage
Offer customers in niche market something unique in that market
▪ Product features
▪ Product innovations
▪ Product quality
▪ Customer responsiveness
• Focus Low-cost
– Ikea: Young furniture buyers who want style at low cost (price sensitive and low service customer groups)
– Southwest Airlines: Short-haul, point-to-point service between midsize cities & secondary airports in large cities (low pricing & low service)
• Focus Differentiation
– Rolex: Serve highest end of wristwatch market (premium pricing & image)
Rolls-Royce: Serving luxurious end of automobile market (premium pricing & image)
Lower investment costs required compared to a strategy aimed at the entire market or many markets It makes entry into a new market more simple
It allows for specialization and greater knowledge The focuser knows its market niche and knows it well
The focuser can stay close to customers and respond quickly to their changing needs
Focuser can develop strong brand loyalty which can be difficult for other competitors to overcome
• Operates in small scale making it difficult to lower costs significantly. Technological advances have minimized this drawback
• Competitors find effective ways to match a focuser’s capabilities in serving niche market
• Niche can become part of the overall market • Segment becomes so attractive it becomes
crowded with rivals, causing segment profits to be splintered
Market Segmentation
Key Core Competence
Cost Leadership Differentiation Focus
Low (principally by price)
High (principally by uniqueness)
Low to High (price or uniqueness)
Low (mass market)
High (many market segments)
Low (one or a few segments)
Manufacturing and materials management
Research and development sales and marketing
Any kind of distinctive competence
Product Differentiation
Generic
Strategies
and
Industry
Forces
Industry
Force
Generic Strategies
Cost
Leadership Differentiation Focus
Entry
Barriers
Ability to cut price in
retaliation deters
potential entrants.
Customer loyalty can
discourage potential
entrants.
Focusing develops core
competencies that can
act as an entry barrier.
Buyer
Power
Ability to offer lower
price to powerful
buyers.
Large buyers have
less power to
negotiate because of
few close alternatives.
Large buyers have less
power to negotiate
because of few
alternatives.
Supplier
Power Better insulated from
powerful suppliers.
Better able to pass on
supplier price
increases to
customers.
Suppliers have power
because of low
volumes, but a
differentiation-focused
firm is better able to
pass on supplier price
increases.
Threat of
Substitutes
Can use low price to
defend against
substitutes.
Customer's become
attached to
differentiating
attributes, reducing
threat of substitutes.
Specialized products &
core competency
protect against
substitutes.
Rivalry Better able to
compete on price.
Brand loyalty to keep
customers from rivals.
Rivals cannot easily
meet differentiation-
focused customer
needs.
Risks of Cost Leadership
Risks of Differentiation Risks of Focus
Cost leadership is not sustained: * Competitors imitate. * Technology changes. * Other bases for cost leadership erode. Cost focusers achieve even lower cost in segments.
Differentiation is not sustained: * Competitors imitate. * Bases for differentiation become less important to buyers. Differentiation focusers achieve even greater differentiation in segments
The focus strategy is imitated. The target segment becomes structurally unattractive: * Structure erodes. * Demand disappears. Broadly targeted competitors overwhelm the segment: * The segment’s differences from other segments narrow. * The advantages of a broad line increase. New focusers sub-segment the industry
This rarely produces a sustainable competitive advantage or a distinctive competitive position
The big risk
Selecting a “stuck in the middle” strategy!
Happen’s when a firm is not successful in pursuing either a low-cost or differentiation strategy
Occurs when a firm’s
Costs are too high to compete with the low-cost leader
Products & services are not differentiatied enough to compete with broad differentiator
Unprofitable strategic position/direction Becoming “unstuck” involves making consistent
strategic decisions about what CA to pursue & doing so by aligning resources & capabilities
A hybrid strategy may be successful, although Porter argues that either differentiation or cost leadership must be used (a mix of the two leads to being “stuck in the middle”) Cost leadership alone does not lead to sales of products Differentiation strategies may be used to increase sales volume,
rather than charging a premium price Price may be used to differentiate
Generic strategy doesn’t create competitive advantage, rather it is a model to help an organization in analysis
Integrated Low-Cost, Differentiation Strategy Develops CA by simultaneously achieving low-cost and
high levels of differentiation ▪ Make an upscale product at a lower cost
▪ Give customers more value for the money
Technological advancements that make this hybrid competitive strategy possible are ▪ Flexible manufacturing systems
▪ Just-in-time inventory systems
▪ Computer-integrated manufacturing systems
• Examples of Integrated low-cost differentiation strategy
• Toyota & Honda
– Cost reduction through zero defects and differentiation through quality
• Wal-Mart
– Cost reduction through automation and differentiation through quality (more value)
Depends on
▪ Current firm resources & capabilities in place
▪ Fir resources & capabilities acquired & developed
Each of Porter’s competitive strategies requires certain skills, resources, & organizational abilities
Abell says that the standard two dimensional way of looking at a business (products and markets) has serious flaws. He suggests a three dimensional model, with 3 axes
Emphasizes that products are merely a physical manifestation of the application of a particular technology to the satisfaction of a particular function for a particular customer group. The choice is one of technologies, functions and customers to serve, not of products to offer.
Central in the model is the Customer, not the Company itself
• Prospector • Analyzer • Defender • Reactor
PROSPECTOR
DEFENDER
ANALYZER
•Operates in a broad product-market domain •Wants to be the 'first-mover' in a market, even if not profitable •Rapid responses to early signals of opportunity •Competes by meeting new market opportunities – may not maintain strength over time in these markets
REACTOR
•Locates & maintains secure position in stable markets •Offers limited range of products & services than competitors •Protects its domain – offers lower prices, higher quality, better service •Not at the forefront of tech or new product development
•Intermediate type – fewer changes than Prospector, more than Defender •Maintains stable product line, but is careful about offering selected new developments •Rarely the first-mover – mostly enters 2nd or 3rd, with a low cost or high quality / service offering
•No well defined competitive strategy •No consistent product-market orientation •Not aggressive •Reacts only when forced by environmental pressures
Miles and Snow typology
Prospector ▪ Seeks innovation
▪ Survey dynamic environment and develops new products
▪ Competitors are uncertain about prospector’s future decisions and actions
▪ seek first mover advantages by introducing new products and services
▪ OFFERS A BROAD PRODUCT LINE
▪ Learning orientation; flexible, fluid, decentralized structure
▪ Strong capability in research
▪ Values creativity, risk-taking, and innovation
Miles and Snow typology Defender
▪ Searches for market stability
▪ Limited product line
▪ Seeks to defend position
▪ Prevents others from entering its turf
▪ Can create and maintain niches
▪ Not likely to innovate
▪ Efficiency orientation; centralized authority and tight cost control
▪ Emphasis on production efficiency, low overhead
▪ Close supervision; little employee empowerment
Miles and Snow typology Analyzer
▪ represent a middle ground between prospectors and defenders and
emphasize flexibility and second mover advantages
▪ Strategy of analysis and imitation
▪ Copies promising new activities
▪ Operates in 2 markets (one stable, one variable)
▪ Emphasizes efficiency in stable markets
▪ Emphasizes innovation In variable markets
Miles and Snow typology Reactor
▪ Lacks a strategic plan
▪ Reacts to environmental changes
▪ Makes adjustments when forced to
▪ Unable to respond quickly to changes
▪ Responses to the environment are often ineffective
▪ Tends to make piecemeal strategic changes
Offensive Moves: Direct attacks undertaken to ▪ build new or stronger market positions and/or
▪ create competitive advantage
Defensive Moves: Undertaken to ▪ protect competitive advantage
▪ reduce risk of being attacked
▪ discourage the offensive strategies of rivals
▪ blunt the impact of any attack
Rarely a basis for creating competitive advantage
Counter-parry: fending off a competitor’s attack in one
country by attacking in another country
1. Match / exceed competitive strengths
2. Capitalize on rivals’ weaknesses
3. Simultaneous initiatives on many fronts
4. End-run offensives
5. Guerilla offensives
6. Preemptive strikes
Appeal Gain market share by out-matching strengths of
weaker rivals Whittle away at a rival’s competitive advantage
Challenging strong competitors with a lower
price is risky, unless aggressor has a COST ADVANTAGE or advantage of GREATER FINANCIAL STRENGTH!
1. Attacking Competitor Strengths
Possible Offensive Options
Offer equally good product at a lower price
Develop low-cost edge, then use it to under-price rivals
Leapfrog into next-generation technologies
Add appealing new features
Run comparison ads
Construct new plant capacity in rival’s market strongholds
Offer a wider product line
Develop better customer service capabilities
Attacking Competitor Strengths (contd.)
Basic Approach Concentrate one’s competitive strengths & resources
directly against rivals’ weaknesses
Weaknesses to Attack: Concentrate on geographic regions where rival has
weak market share
Go after buyer segments rival is neglecting
Go after more performance-conscious customers of rivals
Attack rivals with weaker advertising & brand recognition
2. Attacking Competitor Weaknesses
Challenging rivals where they are most vulnerable is more likely to succeed than
challenging them where they are strongest, ESPECIALLY when challenger possesses
competitive advantage in areas where rivals are weak!
Objective Launch several major initiatives to
Throw rival off-balance,
Splinter its attention in many directions, and
Force it to use substantial resources to defend its position
Eg. new product introductions coupled with increases in
advertising and reductions in price) Appeal A challenger with superior resources can overpower a
weaker rival by outspending it across-the-board long enough to “buy its way into the market”
3. Launching offensives on many fronts
Manoeuver around rival firms rather than meeting them head on
Objective DODGE head-to-head confrontations that
escalate competitive intensity Appeal Force competitors into playing catch up Change rules of competition in aggressor’s favor
4. End-run offensives
Approaches:
Introduce products that re-define market in terms of competition
Introduce next-generation technologies & leapfrog rivals
Introduce products with different attributes & features to
better meet buyer needs
Build presence aggressively in new geographic markets where rivals have little or no market presence
Come up with more support services for customers
End-run offensives (contd.)
Approach
Use principles of surprise & hit-and-run to attack in locations
& at times where conditions are most favorable to initiator
Selectively capture market share from rival leaders when the
lack of resources or market visibility prevents a full scale
offense Appeal Well-suited to small challengers with limited resources
5. Guerrilla Offenses
Options: Focus on narrow target weakly defended by rivals
Challenge rivals where they are overextended &
when they are encountering problems
Make random scattered raids on leaders with tactics such as Occasional low-balling on price Intense bursts of promotional activity Legal actions charging antitrust violations, patent infringements, & unfair advertising
Guerrilla Offenses (contd.)
Eg.: Sponsoring the Indian cricket team failed for Nike, as Reebok managed to
put branded stickers on their bats, at far less cost but for a much greater
return
Approach
Involves moving first to secure an advantageous position that rivals are discouraged from duplicating!
Options: Expand capacity ahead of demand in hopes of discouraging rivals
from following suit
Tie up best or cheapest sources of essential raw materials
Move to secure best geographic locations
Obtain business of prestigious customers
Build an image in buyers’ minds that is unique & hard to copy
Secure exclusive or dominant access to best distributors
Secure pricing advantages with long-term supply contracts
Acquire desirable, but struggling, competitor
Preemptive strikes (contd.)
Competitive advantage areas offering strongest basis for a strategic offensive:
Develop lower-cost product design
Make changes in production operations that lower costs or enhance differentiation
Develop product features that deliver superior performance or lowers users’ costs
Give more responsive customer service
Escalate marketing effort
Pioneer new distribution channel
Sell direct to end-users
Objectives: Lessen risk of being attacked
Blunt impact of any attack that occurs
Influence challengers to aim attacks at other rivals
Strengthen firm’s present position
Help sustain any competitive advantage held
Approach #1 Block avenues challengers can take in
mounting offensive attacks Approach #2 Make it clear any challenge will be met with
strong counterattack
Broaden product line to fill gaps rivals may go after
Keep prices low on models that match rivals
Sign exclusive agreements with distributors
Offer free training to buyers’ personnel
Give better credit terms to buyers
Reduce delivery times for spare parts
Increase warranty coverages
Patent alternative technologies
Sign exclusive contracts with best suppliers
Protect proprietary know-how
DEFENSIVE STRATEGIES: APPROACH #1
Publicly announce management’s strong commitment to
maintain present market share
Publicly announce plans to construct new production capacity to
meet forecasted demand
Give out advance information about new products, technological
breakthroughs, & other moves
Publicly commit firm to policy of matching prices & terms offered
by rivals
Maintain war chest of cash reserves
Make occasional counter-responses to rivals’ moves
DEFENSIVE STRATEGIES: APPROACH #2
1) Always counter an attack with equal or greater force
2) Defend every important market
3) Be forever vigilant in scanning for potential attackers. Assess the strength of the competitor. Consider the amount of support that the attacker might muster from allies
4) The best defense is to attack yourself. Attack your weak spots and rebuild yourself anew
5) Defensive strategies: the domain of the market leader
Popular strategy for multinationals Respond to attack by attacking competitor in
another country
Ex.: Kodak—When Fuji attacked Kodak in the U.S., Kodak retaliated by attacking Fuji in Japan.
Goodyear also attacked Michelin in Europe as response to attack in U.S.
WHEN to make a strategic move is often as crucial as WHAT move to make
First-mover advantages arise WHEN
Pioneering helps build firm’s image & reputation
Early commitments to raw material suppliers, new technologies, & distribution channels can produce cost advantage
Loyalty of first time buyers is high
Moving first can be a preemptive strike
Arise WHEN Costs of pioneering are sizable & loyalty of first time
buyers is weak Rapid technological change allows followers to
leapfrog pioneers Skills & know-how of pioneers are easily imitated by
late movers It is easy for latecomers to crack market