MRKT 354 Lecture Notes - Lecture 6: Rolex, Topnotch, Competitor Analysis
6 Dec 2017
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Chapter 6: competitive position and sources of advantage. To achieve above-average profits, a business has to develop some source of competitive advantage that provides target customers with superior customer value superior customer value results in superior profits. Advertising: additional products lower the advertising dollars spent on each unit of product (i. e. each time an individual campbell"s soup is advertised the ad reinforces top-of-the-mind awareness of. Cost advantage index = (business (%cogs))/(average (%cogs) for top 3 competitors) x 100: note: when competitors differ significantly in size (sales), a weighted average based on sales should be used for the top 3 competitors. Profit impact: businesses with a cost advantage relative to competitors have been shown to be more profitable. Competitor analysis: after determining main competitors to benchmark conduct a more detailed analysis of them, a market-based business gather competitor intelligence all the time and has consequently has continuously evolving competitor profiles.
