Five Forces Determining Segment Structural Attractiveness
§Potential entrants
§Suppliers
§Buyers
§Industry competitors
§Substitutes
Industry Concept of Competition
§Number of sellers and degree of differentiation
§Entry, mobility, and exit barriers
§Cost structure
§Degree of vertical integration
§Degree of globalization
Industry Concept of Competition
§Pure monopoly
§Oligopoly
§Monopolistic competition
§Pure competition
Analyzing
Competitors
§Share of market
§Share of mind
§Share of heart
Expanding the Total Market
§New customers
§More usage
Six Types of Defense Strategies
§Defender
§Flank
§Preemptive
§Counteroffensive
§Mobile
§Contraction
Factors Relevant to Pursuing Increased Market Share
§Possibility of provoking antitrust action
§Economic cost
§Pursuing the wrong marketing-mix strategy
§The effect of increased market share on
actual and perceived quality
Other Competitive Strategies
§Market challengers
§Market followers
§Market nichers
Market Challenger Strategies
§Define the strategic objective and opponents
§Choose a general attack strategy
§Choose a specific attack strategy
General Attack Strategies
§Frontal attack
§Flank attack
§Encirclement attack
§Bypass attack
§Guerrilla warfare
Specific Attack Strategies
§
Price discounts
§
Lower-priced goods
§
Value-priced goods
§
Prestige goods
§
Product proliferation
§
Product innovation
§
Improved services
§
Distribution innovation
§
Manufacturing-cost reduction
§
Intensive advertising promotion
Market Follower Strategies
§
Counterfeiter
§
Cloner
§
Imitator
§
Adaptor
Market Nicher Strategies
§
Identify and satisfy the need of specific customer
§
Charge premium price
§
Shape a strong corporate culture & Vision
Balancing Orientations
§
Competitor-centered
§
Customer-centered
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