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Chapter 18

MGMA01H3 Chapter Notes - Chapter 18: Competitor Analysis, Cost Leadership, Competitive Advantage


Department
Management (MGM)
Course Code
MGMA01H3
Professor
Aggrawal
Chapter
18

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Chapter 18: Competitive Advantage
Competitive advantage: advantage over competitors gained by offering consumers
greater value than competitors do
Competitor analysis: process of identifying key competitors; assessing their
objectives, strategies, strengths and weaknesses and reaction patterns and selecting
which competitors to attack or avoid.
Competitive marketing strategies: strategies that strongly position the company
against competitors and give the company the strongest possible strategic advantage.
Competitor Analysis:
Identifying competitors assessing competitors’ SWOT selecting which competitor
to attack/avoid
Assessing competitors:
oDetermining competitor’s objectives/priorities
such as market share, cost leadership, cash flow etc
It reveals whether competitor is satisfied with current situation and
how it will respond to certain changes
oIdentifying strategies
Strategic group: group of firms in an industry following the same or a
similar strategy in a given target market
oAssessing strengths and weaknesses
Benchmarking: process of comparing the company’s products and
process to those of competitors of leading firms in other industries to
identify “best practices” and find ways to improve quality and
performance
oEstimating competitor’s reactions
oStrong or weak competitors
Customer value analysis: analysis conducted to determine what
benefits target customers value and how they rate the relative value of
various competitors’ offerings
Strategic sweet spot: the spot where it meets customer’s needs in a
way that rivals can’t
oClose and distant competitors
Nike vs. adidas
oGood or bad competitors
Company can benefit from competitors
ie. Starbucks helping smaller coffee shops get more customers
oFinding uncontested market spaces
Seek out unoccupied positions in uncontested market spaces
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