MGMA01H3 Chapter Notes -Operational Excellence, Blue Ocean Strategy, Cost Leadership
Document Summary
Competitive advantage- an advantage over competitors gained by offering consumers greater value than competitors do. Step 1: competitor analysis- the process of identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid. Step2: competitive marketing strategies- strategies that strongly position the company against competitors and give the company the strongest possible strategic advantage: requires delivering more value and satisfaction to target consumers than competitors do. Identifying competitors" strategies product quality, features, mix, customer services, pricing policy, distribution coverage, sales force strategy, advertising and sales promotion programs. Estimating competitors" reactions: some industries, companies live in relative harmony; other fight constantly, knowing how major competitors react gives the company cues on how best to attack competitors or how best to defend the company"s current positions. Weak competitors little return in defeating them.
