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Positioning and Competition

Explore Porter's competitive forces, competitor identification, industry and market perspectives, competitive strategies, market structures, and positioning in different market segments.

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Positioning and Competition

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  1. Positioning and Competition Arild Aspelund

  2. Competition in the Automobile Market

  3. Competition in the Pasta Market

  4. Outline • Porter’s competitive forces revisited • Identifying competition • Industry perspective • Market perspective • Analyzing competition • Competitive strategies • for incumbents • And new entrants • Positioning • PODs and POPs

  5. Porter’s Competitive Forces

  6. Identifying Competition • Industry concept of competition • Number of actors and degree of differentiation • Entry, mobility and exit barriers • Cost structure • Degree of vertical integration (but also horizontal) • Degree of globalization • Market Concept of Competition • With whom are you competing for buying power?

  7. Pure Monopoly Oligopoly Monopolistic Competition Pure Competition Primary states of Competition

  8. Analyzing Competition • Strategies • Objectives • Why are your competitors in your product market? • Strengths and weaknesses • Share of market • Share of mind • Share of heart • Selecting main competitors • Strong versus weak • Close versus distant • “Good” versus “Bad”

  9. 10% Market Nichers 20% Market Follower 30% Market Challenger 40% Market Leader An Example of a Market Structure

  10. Strategies for Market Leaders • Expanding the total market • More usage • New customers • Product diversification • Market diversification • Geographical expansion

  11. Strategies for Market Leaders- Defensive Strategies

  12. Market Challengers Market Nichers Market Followers Other Competitive Strategies

  13. Market Challenger Strategies • Set the strategic objective and choose the opponent • Choose the general attack strategy • Frontal attack • Flank attack • By geography or segments • Encirclement attack • Bypass attack • Guerilla warfare • Ex: Pepsico, NetCom, Synnøve Finden

  14. Counterfeiter Cloner Imitator Adapter Market Follower Strategies Kinesiske Chery QQ og Chevrolet Spark

  15. Niche Market Strategies • The strategy is basically to find a niche where competition is less intense, but profit potential is still significant

  16. Act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market. Positioning

  17. Brand Positioning – PODs and POPs • Points-of-difference (PODs) • Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand • Points-of-parity (POPs) • Associations that are not necessarily unique to the brand but may be shared with other brands

  18. Choosing PODs • Related to consumer desires • Relevance • Distinctiveness • Credibility • Related to ability to deliver • Feasibility • Communicability • Sustainability

  19. VS VS VS VS Differentiation Strategies • Product differentiation • Personnel differentiation • Channel differentiation • Image differentiation

  20. Product Life Cycles

  21. The BCG Matrix

  22. Summary and continuation • Summary • We have used Porter’s five forces to find concentrations of power and competitive barriers in an industry • We have defined some distinct categories of competition and set out some factors for competitive analysis • We have found some good strategies for incumbents and market challengers • Finally, we have defined the concept positioning and given some thoughts on PODs and POPs • Continuation • Service Marketing and Product Strategies

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