COMPETITIVE

MARKETING
STRATEGY

By:
Abhay Tiwari
LHSB
 INTRODUCTION

 Satisfying customers may not guarantee
success
 Real question is whether a firm can satisfy
customers better than competitors
 Customer preference will depend on delivering
more value than competition
 This extra value is brought about by
establishing a competitive advantage
 Therefore, firms need to understand both
customers and competitors
ANALYZING COMPETITIVE
INDUSTRY STRUCTURE

 Competitor Analysis

 Industry is a group of firms that markets
products which are close substitutes of each
other
 Some industries are more profitable than
others
 Determinants of industry attractiveness and
long run profitability, that shape the rules of
competition
 Who are
Competitors?

 Avoid competitive myopia
 Define competition according to customer
need specifications
 Scan environment for potential entrants into
the industry
 Entrants invading the market with substitutes

What are their strengths
and weaknesses?

 Locates areas of competitive vulnerability

 Success achieved when strengths of firm
concentrated against competitors’
weakness

 Identify key factors for success in the industry

 Consumer implications for competitive
strategy
What are their response
patterns?

 Major objective of competitor analysis:
 Ability to predict competitor response to
market and competitive changes
 Traditions and managerial personalities of
competitors also have an influence on
competitive response
 Industries differ in terms of competitive
stability

 What are their
response patterns?
 Years of competitive stability may breed
complacency
 Competitors are unlikely to respond where
their previous strategies have restricted
their scope for retaliation
 Competitors may respond selectively
 Competitors may also be completely
unpredictable in their response patterns

 COMPETITIVE ADVANTAGE

COMPETITIVE STRATEGIES


 Differentiation
 Cost leadership
 Differentiation focus
 Cost focus

Competitive Positions

 Market Leader

 Market Challengers

 Market Followers

 Market Nichers
 Strategies for Market
Leader

 Protect the market share.

 Expanding the total market.

 Expanding market share.
 Strategies for
Challenger

 Keep challenging the market leader by
imitation(Frontal attack).

 Indirect attack

 Give up and become a market follower.
 Strategies for
Follower

 Learn from the leader.

 Utilize the distribution network of the leader.

 Imitate the new products of the market leader.

 Keep a distance from the leader.
 Market orientation

Customer-Centered
No Yes

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