Identifying
Competitors
Evaluating Competitors
Competitive Intelligence Systems
Competitive Strategies
Customer vs. Competitor Orientation
Suppliers
(Supplier power)
Industry
Competitors
(Segment rivalry)
Substitutes
(Threats of
substitutes)
Buyers
(Buyer power)
Low
High
Low
Low, stable
returns
Low, risky
returns
High
High, stable
returns
High, risky
returns
Industry Competition
Number
of Sellers - Degree of
Differentiation
Entry, Mobility, Exit barriers
Cost Structure
Degree of Vertical Integration
Degree of Globalization
A
High Group
Narrow line
Low
Group C
Moderate line
Medium mfg. cost
Medium service
Medium price
Group D
Broad line
Medium mfg. cost
Low service
Low price
High
2000 Prentice Hall
Low
Vertical Integration
Analyzing Competitors
Objectives
Strategies
Competitor
Actions
Reaction
Patterns
Strengths &
Weaknesses
Competitors Expansion
Plans
Products
Individual
Users
Personal
Computers
Hardware
Accessories
Software
Dell
Markets
Commercial
& Industrial Educational
Hypothetical Market
Structure & Strategies
Market
leader
40%
Expand Market
Defend Market Share
Expand Market Share
2000 Prentice Hall
Market
challenger
30%
Attack leader
Status quo
Market
nicher
Market
follower
20%
Imitate
10%
Specialize
Defense Strategies
(2) Flank defense
Attacker
(3) Preemptive
defense
(4) Counteroffensive
defense
(1)
Position
defense (6) Contraction
defense
Defender
(5)
Mobile
defense
0%
25%
50%
75%
Market share
100%
Attack Strategies
(4) Bypass attack
(2) Flank attack
(1) Frontal attack
Attacker
Defender
(3) Encirclement attack
goods
Prestige goods
Product proliferation
Product innovation
Improved services
Distribution innovation
Manufacturing cost reduction
Intensive advertising promotion
2000 Prentice Hall
Nichemanship
End-user specialist
Vertical-level specialist
Customer-size specialist
Specific-customer specialist
Geographic specialist
Product or product-line specialist
Product-feature specialist
Job-shop specialist
Quality-price specialist
Service specialist
Channel specialist
Balance
Customer
+ ID opportunities
+ Long-run profit
+ Emerging needs & groups
2000 Prentice Hall
Competition
+ Fighter orientation
+ Alert
+ Exploit weaknesses
- Reactive
Review
Identifying
Competitors
Evaluating Competitors
Competitive Intelligence Systems
Competitive Strategies
Customer vs. Competitor Orientation