Competitive Advantages March 2, 2010. Guitar Hero Example.
-
Upload
lisa-garrison -
Category
Documents
-
view
222 -
download
0
Transcript of Competitive Advantages March 2, 2010. Guitar Hero Example.
![Page 1: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/1.jpg)
Competitive Advantages
March 2, 2010
![Page 2: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/2.jpg)
Guitar Hero Example
![Page 3: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/3.jpg)
Next: Rock Band
![Page 4: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/4.jpg)
Next: Guitar Hero World Tour
![Page 5: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/5.jpg)
Competitive Advantages
Business look for advantages over competition Some may be temporary
Eg. Rock Band/Guitar Hero, Coke Zero/Pepsi Max, Quiznos/Subway
True competitive advantage is sustainable
![Page 6: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/6.jpg)
Sustainable Competitive Advantages
Methods by which a business holds on to its customers in spite of competition
How? Unique selling proposition Lower production costs Servicing a niche market Creating customer loyalty
![Page 7: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/7.jpg)
Unique Selling Proposition
Remember:
![Page 8: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/8.jpg)
What happened?
- In 2005, EA signed an exclusivity deal with the NFL- Exclusive rights to use teams,
players, stadiums in a video game- This is a unique selling proposition
![Page 9: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/9.jpg)
Unique Selling Proposition
Why would a customer buy from me instead of others? Must be something a competitor
could not duplicate easily Eg. Patent, licensing.
![Page 10: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/10.jpg)
Lowering Production Costs
Use cost-efficient, high-tech systems and processes to reduce costs. Eg. Building a plant outside of the
country – lower resource costs, few taxes, lower cost of living that reduces labour expenses.
What if other companies do not want to relocate?
![Page 11: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/11.jpg)
Serving a Niche Market
If a marketer recognizes an opportunity to create a niche market, and takes advantage of the opportunity.
![Page 12: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/12.jpg)
Burrito Boyz Burrito Boyz served
niche market in Toronto/Mississauga
If a new competitor opened, I would have to be convinced the product is superior to Burrito Boyz before switching
![Page 13: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/13.jpg)
Creating Customer Loyalty Are there any brands or stores that you
are particularly loyal to? Eg. Mr. Fortuna -> Nike shoes, Rawlings
baseball gloves Bank customers
Customer develops strong relationship with product retailer, and won’t consider another unless a mistake is made.
![Page 14: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/14.jpg)
Non Sustainable Competitive Advantages
Promotion Placement Quality Benefits of Use Price Design Features
![Page 15: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/15.jpg)
Promotion
Place brands in minds of consumers Eg. Roll Up the Rim to Win
Top of the Mind Awareness: Consumer is most likely to think about one brand of product or service before another.
Can you think of any examples?
![Page 16: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/16.jpg)
Placement
A product must be there to purchase in order to compete. Eg. Placement in grocery stores, Wal-
Mart Exclusive distribution
Look at Bishop Tonnos – see any Pepsi machines?
Box Stores (Category Killers)
![Page 17: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/17.jpg)
Quality
Businesses are trying to make their products better. Research & Development – continual
improvement Some businesses compete by
providing low quality merchandise Children’s clothes
![Page 18: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/18.jpg)
Benefits Of Use
Value is not the product itself, but what it will do. iPhone – benefit is the apps and all
the things they do for people A product that can do more or
perform better than another has a competitive advantage
![Page 19: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/19.jpg)
Price
Features being equal, price is only a competitive advantage if it is lower Not sustainable. Competitors can
always lower their prices as well. Image pricing
Eg. Cadillac, Mercedes
![Page 20: Competitive Advantages March 2, 2010. Guitar Hero Example.](https://reader035.fdocuments.us/reader035/viewer/2022062309/5697bff91a28abf838cbfdca/html5/thumbnails/20.jpg)
Design Features
Influences how a product looks and what it does Eg. Fashion
Packaging Mayonnaise?