Category Attractiveness
-
Upload
nidhisha-shetty -
Category
Documents
-
view
579 -
download
26
Transcript of Category Attractiveness
4
Category Attractiveness Analysis
4-2
Aggregate Category Factors
• Category size
• Category growth
• Stage in product life cycle
• Sales cyclicity
• Seasonality
• Profits
4-3
Attractiveness of Market Variables
4-4
Category Attractiveness over the Product Life Cycle
Stage of product life cycle
Category size
Category growth
Category attractiveness
Introduction
Small
Low
Low
Growth
Moderate
High
High
Maturity
Large
Low
Low/high
Decline
Moderate
Negative
Low
Sales
Time
4-5
Category Factors
• Threat of new entrants
• Bargaining power of buyers
• Bargaining power of suppliers
• Current category rivalry
• Pressure from substitutes
• Category capacity
4-6
Environmental Factors
• Technological
• Political
• Economic
• Regulatory
• Social
4-7
Factors in Assessing
the Structure of Industries
4-8
Factors in Assessing the Structure of Industries
• Threat of new entrants
• Bargaining power of buyers
• Bargaining power of suppliers
• Amount of intracategory rivalry
• Threat of substitute products or services
4-9
Buyer Bargaining Power is High When:
• Product bought is a large percentage of the buyer’s cost.
• Product bought is undifferentiated.
• Buyers earn low profits.
• Buyer threatens to backward integrate.
• Buyer has full information.
• Substitutes exist for the seller’s product or service.
4-10
Supplier Bargaining Power is High When:
• Suppliers are highly concentrated, that is,
dominated by a few firms.
• There is no substitute for the product
supplied.
• Supplier has differentiated its product or
built in switching costs.
• Supply is limited.
4-11
Major Characteristic of Categories Exhibiting Intensive Rivalries
• Many or balanced competitors
• Slow growth
• High fixed costs
• Lack of product differentiation
• Personal rivalries
4-12
Impact of Category Factors on Attractiveness
4-13
Typology of Technical Developments
* Includes agronomic and biomedical developments.
4-14
Conceptualizing Political Risks
4-15
Impact of Category Factors on Attractiveness
4-16
5
Competitor Analysis
4-17
Competitor Analysis System
What are they going to
do?
Differential
competitor
advantage analysis
i.e. Who has the
competitive product
advantage?
Key questions:
- Who are they?
- What are the
competing product
features?
- What do they
want?
- What is their
current strategy?
Primary data Secondary data
4-18
Primary Sources of Competitor Information
Sales Force
Investment
Bankers
Suppliers
Customers
Employees
Consultants/
Specialized
Firms
Primary
Data
4-19
Other Sources of Competitor Information
Trade Shows
Help-Wanted
Advertisements
Plant Tours
Reverse
Engineering
Monitoring
Test Markets
Hiring Key
Employees
Primary
Data
4-20
Product Features Matrix
4-21
Assessing Competitors’ Strategies
• Marketing strategy
• Comparing value chains
• Marketing mix
• Pricing
• Promotion
• Distribution
• Product/Service capabilities
4-22
Value Chain
Service
Firm Infrastructure
Human Resource Management
Technology Development
Procurement
Marketin
g and
Sales
Operations
Outbound
Logistics
Inbound
Logistics
Support
Activities
Primary Activities
4-23
Criteria to Assess Technological Strategy
1. Technology selection or specialization
2. Level of competence
3. Sources of capability: internal versus
external
4. R&D investment level
5. Competitive timing: initiate versus respond
6. R&D organization and policies
4-24
Competitor Information to Collect
• Ability to conceive and design
• Ability to produce
• Ability to market
• Ability to finance
• Ability to manage
4-25
Differential Competitor Advantage Analysis
4-26
A Competitive Conjecture Process
Our
total
outcome
Second period
First period
Should we cut price?
4-27
PDA Product Features Matrix
4-28
Comparison of Competitor Resources: PDAs
4-29
Comparison of Competitor Resources: PDAs (cont.)