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Competitive Analysis and Marketing Strategy: A Review. What we have done so far . Mission, objectives and goals Portfolio models - BCG, GE Marketing warfare - different strategies for leaders, followers, flankers, and guerillas Segmentation - Cluster analysis, CHAID Logit
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What we have done so far ... • Mission, objectives and goals • Portfolio models - BCG, GE • Marketing warfare - • different strategies for leaders, followers, flankers, and guerillas • Segmentation - • Cluster analysis, CHAID • Logit • Positioning - Maps
Structural Analysis of Industries Michael Porter THREAT OF NEW ENTRANTS BARGAINING POWER OF SUPPLIERS BARGAINING POWER OF BUYERS RIVALRY AMONG COMPETITORS THREAT OF SUBSTITUTES
Barriers to Entry • Economies of Scale • Product Differentiation • Capital Requirements • Switching Costs • Access to Distribution Channels • Cost Disadvantages Independent of Scale • Government Policy • Experience Curves • Expected Retaliation
Factors Affecting Rivalry Among Existing Competitors • Numerous or Equally Balanced Competitors • Slow Industry Growth • High Fixed or Storage Costs • Need to operate at capacity Price cutting • Lack of Differentiation • Capacity Augmented in Large Increments • Diverse Competitors • High Strategic Stakes • High Exit Barriers
Bargaining Power of Buyers is High When.... • Purchasing is concentrated or is in large volumes relative to seller’s sales • The product represents a large proportion of buyer’s costs • There is little differentiation or there are low switching costs • Backward integration is a credible threat • Product performance / quality is unimportant to buyer’s performance
Bargaining Power of Suppliers is High When.... • Supplying industry is dominated by a few firms and is more concentrated than the customer industry • The product has few substitutes • The customer industry is not important to the supplier • The supplier product is an important input, is differentiated, or has high switching costs • The supplier group poses a credible threat of forward integration
Barriers and Profitability Low, stable returns Low, risky returns Low ENTRY BARRIERS High, stable returns High, risky returns High Low High EXIT BARRIERS