Chapter 18 - Creating Competitive Advantage

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Department
Management and Organizational Studies
Course
Management and Organizational Studies 2320A/B
Professor
Gail Robertson
Semester
Fall

Description
Chapter 18 creating competitive advantageCompetitive advantagein advantage over competitors gain by offering consumers greater value than competitors doCompetitor analysisthe process of identifying key competitors assessing their objectives strategies strengths and weaknesses and reaction patterns and selecting which competitors to attack or avoidCompetitive marketing strategiesstrategies that strongly position the company against competitors and give the company the strongest possible strategic advantage Competitor analysisIdentifying competitors o The company can define its competitors as other companies offering similar products and services to the same customers at similar prices o Can define competitors from the industry point of view or can define them from a market point of viewAssessing competitors o Determining competitors objectivesThe company wants to know the relative importance that a competitor places on current profitability market share growth cash flow etcThe company must also monitor its competitors objectives for various segmentsIf a competitor has discovered into segment this could be an opportunity o Identifying competitor strategies Strategic groupa group of firms in an industry following the same or similar strategy in a given target marketIf a company enters one of the groups the members of that group become its key competitorsSome strategic groups may appeal to overlapping customer segmentsCustomers may see little difference in quality between two different competitorsMembers of one strategic group could possibly expand into new strategy segmentsCompany must understand how a competitor delivers value to its consumers o Assessing competitor strengths and weaknessesAsk the question What can our competitors doGather data on competitors goals however this could be hard to obtainUsually learn about competitor strength and weaknesses through secondary dataBenchmarkinga process of comparing the companys products and processes to those of competitors or leading firms in other industries to identify best practices and ways to improve quality and performance
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