1. Competitive Analysis and Product Positioning

2. Competitors Direct competitors Indirect competitors Local competitors
Cross-over competitors

3. Identifying the Competitors -1
Product
Direct
Indirect
Local
Industry
Cross-Over

4. Identifying the Competitors -2
Products’ feature and quality
CRM strategies
R&D strategies
Marketing mix
Price
Promotion
Distribution
Supply-chain management

5. Competitor Profiling — Eastman Kodak
4/22/2017
Competitor Profiling — Eastman Kodak HP
Olympus
cameraworks.com
Snapfish
Eastman Kodak
Purchase Camera
Fuji
Purchase Accessories
Purchase Film
Moto Photo
Store Pictures on CD
Take Pictures
Direct Competition
Indirect Competition
Share Pictures
Digitally Manipulate Pictures
Seattle Filmworks
Adobe Systems
Print and Receive Pictures
Download and Choose Pictures to Print
Geocities
District
Shutterfly
Snapfish
Ofoto HP

6. COMPETITIVE ANALYSIS FLOWS OUT OF CUSTOMER ANALYSIS
4/22/2017
COMPETITIVE ANALYSIS FLOWS OUT OF CUSTOMER ANALYSIS
Understand customers needs and wants
Identify current and potential competitors
Perform industry analysis, identify suppliers and common intermediaries
Understand your competitors
Determine competitor strategies (present and future)

7. COMPETITORS TO CONSIDER
CURRENT
market structure analysis
perceptual analysis
POTENTIAL (potential entry of new competitors)
remain alert to their possibility
depends on
barriers to entry
expectations about competitive reactions

8. Using a Perceptual Map for Competitor Analysis
An Example:
Using a Perceptual Map for Competitor Analysis
A touch of class / a car to be proud to own
Lincoln
Porsche
Cadillac
Mercedes
BMW
Conservative looking / appeals to older people
Chrysler
Fun to drive / sporty look / appeals to younger people
Buick
Pontiac
Oldsmobile
Ford
Chevrolet
Dodge
Nissan
Toyota
Plymouth VW
Practical / affordable / good gas mileage

9. BARRIERS TO ENTRY OF NEW COMPETITORS
Economies of Scale
Lack of Product Differentiation
Capital Requirements
Access to Distribution Channels
Buyer Switching Costs
Government Policies and Regulations

10. COMPETITIVE RELATIONS
CONFLICT
COMPETITION
COEXISTENCE
COOPERATION
COLLUSION

11. CONFLICT WITH COMPETITORS
Focus on opponent
Market is viewed as a zero-sum game (one gains only by taking from another)
Competitors’ objectives are mutually inconsistent

12. COMPETITION Focus on winning something (usually customers) Depends on
market attractiveness
industry structure
commitment of competitors
technology required
product differentiation

13. COMPETITOR COEXISTENCE
Working Toward a Goal Independent of Others
Different Niches of Market Available

14. COOPERATION Involves working together toward a common goal
Three main types
Dyadic
Joint Activity
Investment in a Third Party

15. THREE TYPES OF COMPETITOR COOPERATION
Formal Cooperation
Dyadic
Joint activity
Investment in third party
Ownership
Interlocking directorship
Formal exchanges
Subcontracting
Reciprocity
Production
Sourcing
R&D
Promotion
Consortia
Joint ventures
Trade associations

16. COLLUSION Cooperative Behavior Designed to Injure a Third Party
customers
suppliers
non-colluding competitors
general public
Can be Direct or Indirect
Often Illegal

17. GATHERING COMPETITIVE DATA
Establish information-gathering system
Identify your competitors
Perform a competitive audit
Evaluate results of the audit
Regularly integrate into planning process

18. HOW DO YOU COMPETE? Offensive Strategies Defense Strategies
Concentrate on the competitors’ relative weaknesses
5 types
Defense Strategies
Goal is to counter each offensive strategy
6 types

19. OFFENSIVE STRATEGIES 1) Frontal attack 2) Flanking attack
direct confrontation
most difficult and dangerous
2) Flanking attack
addresses gaps in competition’s market coverage
Niche market
3) Encirclement
forcing competitor to spread resources thin by probing on many fronts at once
4) Bypass attack
avoids confrontation
diversification
5) Guerrilla warfare
small, intermittent attacks

20. DEFENSE STRATEGIES 4) Flank-positioning 1) Position Defense
extend firm’s offerings into new segments to protect existing
5) Counter-offensive Defense
gathering resources and counter-attacking when threatened
6) Strategic Withdrawal
1) Position Defense
fortify firm’s existing position
2) Mobile Defense
Market broadening
3) Preemptive Defense
Attacking first (first strike)

21. Partners
Complementary partner
Capability partner