Dealing With Competition
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Transcript of Dealing With Competition
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Dealing With Competition
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PURPOSE OF STUDY1. Understanding Concepts Market Competition2. Identifying Competitors3. Understanding4. Market Leader Strategies 5. Understanding Market Challenger Strategies
Understanding Market Strategy Followers
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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 ) .
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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
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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.
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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.
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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 .
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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
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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 .
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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).
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• Determining strategic objectives and competitors• Defining and against strategic objectives.• Choosing common assault strategy
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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 .
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• 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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