Competition
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The document discusses various competitive advantages and strategies used by companies. It defines four types of competitive advantages based on costs and differentiation: costs leadership, differentiation advantage, focus advantage, and combination advantage. It also describes strategies used by different types of market players: market leaders look to constantly advance and defend their position; market challengers may use frontal attacks, flank attacks, or surrounding tactics; market followers look to imitate or adapt leaders' offerings; market nichers focus on defending a small market segment; and outsiders try strategies like harvesting, reorganizing, or integrating to improve their weak position. Specific examples are given of strategies used by companies like Nescafe, Odnoklassniki, and Bionor
Competition
- 2. 1 2 PRODUCT COMPETITIVE ADVANTAGES IMPORTANT FOR THE CLIENTS PRODUCT COMPETITIVE ADVANTAGES A LOT OF SEVERAL TWO‐THREE 3PCA IMPORTANT FOR THE CLIENTS AND ABSENT BY COMPETITORS The Cone of Competitive Advantages
- 4. 1.FOCUS (SPECIALIZATION) 2. PROMINENT SUCCESS 3. DISASTER 4. COSTS LEADERSHIP - relative costs high - a degree of marketing differentiation high relative costs low - a degree of marketing differentiation high Matrix of Competitive Advantages relative costs low - a degree of marketing differentiation low relative costs high - a degree of marketing differentiation low
- 5. base - In differentiation - In costs - In specialization (Focus) Competitive Advantages Forms additional in marketing in immediate reaction on the necessities of the market in innovations in more effective management in aggregate with kinds of activity (in diversification)
- 8. RESEARCH AND DEVELOPMENT MARKETING CAMPAIGN BY USING HIGH PROFILE CELEBRITIES INVESTS 3% OF THEIR SALES IN RESEARCH AND DEVELOPMENT A DIVERSE RANGE OF PRODUCTS THAT CATERS TO VARIOUS ETHNIC GROUPS l'oreal Core Competencies MAKE UP, PERFUME, HAIR AND SKIN PRODUCTS ‐ CONSUMER PRODUCTS ‐ ACTIVE COSMETICS ‐ LUXURY PRODUCTS PROFESSIONAL PRODUCTS
- 10. one of the first airlines to skip the travel agent and to start advertising on their planes broke the tradition with the airline loyalty programs, but their offering was clear: point to point for a price of an affordable pair of jeans fleet is standardized headquarters is in London, no thrills just a simple office on one of their most important Hubs spend more time in the air transporting than at the gate in the airport partnerships is a skill they manage very well – EasyJet offers Starbucks Coffee, Rental Cars, Collection for Charity and Hotel rooms as extra services easy jet ‐ costs Passengers - 73 137 826 Load factor - 91,6% Total revenue of £4,669 million Revenue per seat of £58.46
- 12. Innovations as an Advantage Market conditions the absence of product analogue potential or hidden demand for product readiness of large- scale enterprises or science-technical leaders to make a support (venture funds, business- angels)
- 13. Innovations as an Advantage Silicon Valley conditions A special innovation culture that promotes creative environment Equality - a top manager is always ready to listen to subordinates, and responsible for the project is distributed among all employees of startups The average salary is the highest in the IT sector (about $ 108 thousand per year)
- 17. Market Position Market leader – has a crucial influence on work and others’ behaviour Market challenger - Strong market position, has a wide range of strategies, almost independent from competitors Market follower – can achieve high profits because did not bear of innovation expense Market nicher (guerrilla), has a particular competitive advantage in the niche Outsider - Weak market position with insufficient productivity
- 20. Constant advancement - Entry with new products - Improving the quality nescafe strategies Defense and reinforcement - To close free niches - To preserve reasonable prices and attractiveness of goods - To raise the competitive barrier increasing costs on advertising Toward the market followers - Effective benchmarking - Wide-scope campaigns of product promotion
- 25. The Strategies of Market Follower Counterfeiter – duplicates the product Cloner – emulates the brand Imitator – copies some things Adapter – improves and adapt the product
- 28. The strategies of weak business ‘Harvesting’ on a particular market Leaving a particular market for another one Working with the cheap produce or using new methods of differentiation Preservation and retention of sales volumes, market share, efficiency and competitive market position on current levels Minimal reinvestment
- 29. The strategies for outsiders Production re-organization Integration with another enterprise Assortment reduction A considerable decrease on marketing expenditure Resignation from business