Dealing With Competition

PURPOSE OF STUDY1. Understanding Concepts Market Competition2. Identifying Competitors3. Understanding4. Market Leader Strategies 5. Understanding Market Challenger Strategies

Understanding Market Strategy Followers

Understanding Concepts Market Competition

• Pure monopoly - only one company that provides a product or service in a particular country or region ( the gas company or local power company ).

• Oligopoly - few companies large manufactures products ranging from highly differentiated products to standardized products.

• Monopolistic competition - a lot of competitors who are able to differentiate their offer as a whole or in part ( restaurants , beauty shops ).

• Pure competition - Many competitors offer similar products and services ( stock exchanges , commodity exchanges ) .

IDENTIFYING COMPETITORS

• Identify competitor company seems a simple task. focusing on the current competitors and not on hidden competitors has led some companies were eliminated

ANALYZING COMPETITOR

• To plan effective competitive marketing strategy, companies need to find all the information about competitors. Companies must constantly have to compare products, prices, distribution channels, and promotion with the nearest competitor.

STRATEGY FOR IDENTIFYING COMPETITORS

• The more similar the strategy of a company with another company strategy, increasingly tight competition between the two. In almost all industries, competitors can be divided into groups to different strategies.

ASSESSING THE STRENGTHS AND WEAKNESSES COMPETITORS

• market share of the target market share of the top contenders

• share of mind percentage of customers who mention the name of the competitor in responding to the question , " mentioned the first company in this industry that is in your mind . "

• heart percentage share of customers who mention the name of the competitor in responding to the question , " mentioned the company whose products you like to buy more .

STRATEGY MARKET OF LEADER

• Certain market occupied by the companies, 40% of the market dominated the market leader (Market leader), 30% controlled by market challengers (challenger market), 20% other followers dominated the market (market followers)

• EXPANDING MARKET OVERALL

To survive as number one . Companies are required to take action in three areas

• First , the company must find a way to enlarge the overall market demand .

• Second , the company must protect its market share now through defensive and offensive actions are appropriate .

• Third , the company should try to increase its market share even further , although the size of the market remains the same .

MARKET STRATEGY CHALLENGER

• Company number two, three or lower in an industry are sometimes quite large. The challenger companies can implement one of two competing strategy. They could challenge the leaders and competitors; aim in betting aggressively to capture market share more (market challengers). Or they can be played in accordance with competitor and not shake the boat (market followers).

• Determining strategic objectives and competitors• Defining and against strategic objectives.• Choosing common assault strategy

STRATEGY MARKET FOLLOWER

• Not all market challengers want to face the market leader . Challenger is never taken lightly by the leader . If the challenger throwing products at low prices , better service , or the nature of the additional products , in a short time the leader can compensate for blurring attack . The leader may have greater power to survive in an all-out battle to win customers .

• There are four different broad strategies :• counterfeiters mimic roundly products and packaging leader and sell

it on the black market .• cloner seeks to name or exceed the product , name and packaging

products leader . , with minor variations . For example , Ralcorp Holdings Inc. . sell imitation brands of cereal in similar packaging . Taste , Fruit Rings , and Corn Flakes sold at a cheap supply of $ 1 a box of the brand leader .

• Imitator cheating a few things from the leader but still maintain the differentiation of packaging , advertising , pricing , and others.

• adapters take the product leader and adapt or improve it . may choose to sell to different markets

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