Dealing with Competition..Marjonel

In: Business and Management

Submitted By marjibels
Words 858
Pages 4
Dealing with Competition
(Reported by: Marjonel M. Buclatin)

Five Forces Determining Segment Structural Attractiveness 1. Industry competitors 2. Threat of Potential entrant 3. Bargaining power of Suppliers 4. Bargaining Power of Buyers 5. Threat of Substitutes

Industry Concept of Competition Marketers classify industry according: 1. Number of sellers and degree of differentiation 2. Entry, mobility, and exit barriers 3. Cost structure 4. Degree of vertical integration 5. Degree of globalization

An industry is a group of firms that offer a product or class of products that are close substitutes for one another * Once a company identifies its primary competitors, it must ascertain their strategies , objectives , strengths and weaknesses. * A group of firms following the same strategy in a given target market is a STRATEGIC GROUP * Once a company has identified its main competitors and their strategies , it must ask: 1. What is each competitor seeking in the market? 2. What drives each competitor’s behavior?

Strengths and Weaknesses of Competitors 1. Share of market- the competitor’s share of target market 2. Share of mind- the percentage of customers who named the competitor in responding to the statement, “Name the first company that comes to mind in this industry” 3. Share of heart- The percentage of customers who named the competitor in responding to the statement, “ Name the company from which you would prefer to buy the product”

Benchmarking
-to improve market share many companies benchmark their most successful competitors as well as other world class performers.

Steps in Benchmarking I. Determine which functions or processes to benchmark II. Identify the key performance variables to measure III. Identify the best-in-class companies IV. Measure the…...

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