Directory UMM :Slide_Kuliah:PPT:MP_Kotler_10:

Objectives
 Identifying

Competitors
 Evaluating Competitors
 Competitive Intelligence Systems
 Competitive Strategies
 Customer vs. Competitor Orientation

©2000 Prentice Hall

Induce your competitors not to invest in
those products, markets and services
where you expect to invest the most …
that is the fundamental rule of strategy.
Bruce Henderson, Founder of BCG

There is nothing more exhilarating than
to be shot at without result.
Winston Churchill
©2000 Prentice Hall

Five Forces Determining Segment
Structural Attractiveness
Potential Entrants
(Threat of
Mobility)

Suppliers
(Supplier power)

©2000 Prentice Hall

Industry
Competitors
(Segment rivalry)

Substitutes
(Threats of
substitutes)

Buyers
(Buyer power)

Barriers and Profitability
Exit barriers
Entry Barriers

Low

High

Low

Low, stable
returns

Low, risky
returns

High

High, stable
returns

High, risky
returns

©2000 Prentice Hall

Industry Competition
 Number

of Sellers - Degree of
Differentiation
 Entry, Mobility, Exit barriers
 Cost Structure
 Degree of Vertical Integration
 Degree of Globalization

©2000 Prentice Hall

Strategic Groups in the Major
Appliance Industry
Quality

A
High Group
•Narrow line

•Lower mfg. cost
•Very high service
•High price
Group B
•Full line
•Low mfg. cost
•Good service
•Medium price

Low

Group C
•Moderate line
•Medium mfg. cost
•Medium service
•Medium price
Group D
•Broad line
•Medium mfg. cost
•Low service
•Low price

High
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Low

Vertical Integration

Analyzing Competitors
Objectives

Strategies
Competitor
Actions

Reaction
Patterns

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Strengths &
Weaknesses

Competitor’s Expansion
Plans

Products

Individual
Users
Personal

Computers
Hardware
Accessories
Software

©2000 Prentice Hall

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

©2000 Prentice Hall

Optimal Market Share

Proftability

Optimal market share

0%

25%

50%

75%

Market share
©2000 Prentice Hall

100%

Attack Strategies
(4) Bypass attack
(2) Flank attack
(1) Frontal attack
Attacker

Defender
(3) Encirclement attack

(5) Guerilla attack
©2000 Prentice Hall

Specific Attack Strategies
 Price-discount
 Cheaper

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


©2000 Prentice Hall

Balance

Customer
+ ID opportunities
+ Long-run profit
+ Emerging needs & groups
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Competition
+ Fighter orientation
+ Alert
+ Exploit weaknesses
- Reactive

Review
 Identifying

Competitors
 Evaluating Competitors
 Competitive Intelligence Systems
 Competitive Strategies
 Customer vs. Competitor Orientation

©2000 Prentice Hall