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Corporate Appreciation
Who are your main competitors? What is the market share of each of them in the market overall? Which are growing and which are declining? Why? What is their share in each market segment (geography, customer type etc.)? Are they broad based across the whole market, or do they derive their overall share by domination of one or more segments? Does the share come from one dominant product/service, or a wide range? Which segment does each of them avoid? Why? What is unattractive to them about it?
Corporate Appreciation
What is the strategy of each? How could you turn their strengths and weakness? Are there any major companies that do not operate in your market but could do so in the near future? What are the main substitutes in your market? Which are growing and which are declining? What are the substitutes? main companies that provide these
Three Lessons Underpinning Success in Warfare are Directly Transferable to obtaining Competitive Advantage
Superior (SWAT). Weapons (Technology) and Tactics
Three Lessons Underpinning Success in Warfare are Directly Transferable to obtaining Competitive Advantage
Bigger companies have deeper pockets. Law of increasing returns, in which size in some industries builds an unstoppable momentum. Big gets bigger. Economies of scale the main key to profitability in some industries. Hence, aim for significant market share as a key objective. Concentrate resources on one particular segment of the market and dominate it with high force: space ratio. Thus, SME can be the biggest in their chosen part of the market, even if not the biggest overall.
Offensively, this strategy involves piece meal conquest of territory, area by area, gradually capturing land, food, population, troops, tax revenue and other supplies thus diminishing the opponents resources and capacity to fight. Conquest of a market or market sector region by region. The most important resource is customers.
Raiding Strategies
Numerical disadvantage, lack of competitive SWAT or, lack of sufficient force : space ratio. Raiding Combat (small businesses).
Raids , harassment, minor encounters and the specific avoidance of a pitched battle. Compete directly with large competitors, but do so with specific customers rather than across the board. Price reduction, personalisation of service etc. (Guerilla warfare).
RAIDING
Shivaji Vietminh vs France Vietcong vs US
COMBAT
Interski Local specialist shops Shivaji Vietcong vs US Kargil (Pak) Aldi and Netto Amazon
LOGISTICS
FLANKING WARFARE Strategy for new players Moving into an uncontested area Tactical surprise ought to be an important part of the plan
GUERILLA WARFARE Strategy for small players Finding a segment of the market small enough to defend No matter how successful you
Hypercompetition
Four arenas of competition
Cost & Quality (C-Q) Timing and know-how (T-K) Strongholds (S) Deep pockets (D)
Coke
Price / Ounce
Price / Ounce
Pepsi
Pepsi
Coke
Perceived Quality
Perceived Quality
Pepsi
Coke
Price / Ounce
Price / Ounce
Perceived Quality
Price / Ounce
Price / Ounce
Generics RC Cola
Perceived Quality
Perceived Quality