Dealing with the Competition Zou Deqiang, Ph. D School of Management, Fudan University April 9, 2008
1 Dealing with the Dealing with the Competition Competition Zou Deqiang, Ph.D. School of Management, Fudan University April 9, 2008
Something to Mention Contact the professor Address: Room 632, Siyuan Building Phone:25011188 > office hour: 2 p.m. 4 p.m., Thursday, or by appointment Discussion on the group proposal > Thursday(April 10)or Friday(April 11)afternoon 20 minutes for each group Choose the period you prefer at Mr Ho Be punctual, please O Copy rights reserved, Zou Deqiang
2 2 © Copy rights reserved, Zou Deqiang Something to Mention • Contact the professor: ¾Address: Room 632, Siyuan Building ¾Phone: 25011188 ¾Office hour: 2 p.m.~ 4 p.m., Thursday, or by appointment • Discussion on the group proposal ¾Thursday (April 10) or Friday (April 11) afternoon ¾20 minutes for each group ¾Choose the period you prefer at Mr. Ho ¾Be punctual, please
Learning Objectives After studying this chapter, you should be able to 1. Discuss the need to understand competitors as well as customers through competitor analysis 2. Explain the fundamentals of competitive marketing strategies based on creating value for customers 3. lustrate the need for balancing customer and competitor orientations in becoming a truly market- centered organization O Copy rights reserved, Zou Deqiang
3 3 © Copy rights reserved, Zou Deqiang Learning Objectives After studying this chapter, you should be able to: 1. Discuss the need to understand competitors as well as customers through competitor analysis 2. Explain the fundamentals of competitive marketing strategies based on creating value for customers 3. Illustrate the need for balancing customer and competitor orientations in becoming a truly marketcentered organization
Chapter Outline 1. Competitor Analysis 2. Competitive Strategies 3. Balancing Customer and Competitor Orientations O Copy rights reserved, Zou Deqiang
4 4 © Copy rights reserved, Zou Deqiang Chapter Outline 1. Competitor Analysis 2. Competitive Strategies 3. Balancing Customer and Competitor Orientations
Competition 3Cs framework Customer Company Competitor Competition is ubiquitous TVC: Cola War O Copy rights reserved, Zou Deqiang
5 5 © Copy rights reserved, Zou Deqiang Competition • 3Cs framework ¾Customer ¾Company ¾Competitor • Competition is ubiquitous ¾TVC: Cola War
Mac Book air Thinnest laptop computer in the world O Copy rights reserved, Zou Deqiang
6 6 © Copy rights reserved, Zou Deqiang MacBook Air • Thinnest laptop computer in the world
ThinkPad X300 The art of thin Introducing ThinkPadX300 The no-compromise, ultraportable, 13.3"widescreen notebook with an optional integrated DVD drive and 3 USB ports, starting at just 2.9 Ib. Everything else is 7 C Copy just hot air
7 7 © Copy rights reserved, Zou Deqiang ThinkPad X300
Competitor Analysis Identifying Competitors Competitors can include All firms making the same product or class of products All firms making products that supply the same service All firms competing for the same consumer dollars Competitor myopia refers to a firm focusing on what it considers to be its direct competition and not being aware of indirect or new competitors 8 O Copy rights reserved, Zou Deqiang
8 8 © Copy rights reserved, Zou Deqiang Identifying Competitors • Competitors can include: ¾ All firms making the same product or class of products ¾ All firms making products that supply the same service ¾ All firms competing for the same consumer dollars • Competitor myopia refers to a firm focusing on what it considers to be its direct competition and not being aware of indirect or new competitors Competitor Analysis
Competitor Analysis Identifying Competitors Industry point of view refers to competitors within the same industry Market point of view refers to competitors trying to satisfy the same customer need or build relationships with the same customer group 9 O Copy rights reserved, Zou Deqiang
9 9 © Copy rights reserved, Zou Deqiang Identifying Competitors • Industry point of view refers to competitors within the same industry • Market point of view refers to competitors trying to satisfy the same customer need or build relationships with the same customer group Competitor Analysis
Competitor Competition is Analysis All the actual and potential rival offerings and substitutes the prospect or buyer might consider Four levels of competition Those offering similar products or services(BMW and mercedes) Those with products in the same general class or industry(BMW and Honda Those offering alternative means of solving a similar need(cars vs bikes) Those competing for the same consumer dollar(car vs vacation) O Copy rights reserved, Zou Deqiang
10 10 © Copy rights reserved, Zou Deqiang Competition is • All the actual and potential rival offerings and substitutes the prospect or buyer might consider • Four levels of competition ¾Those offering similar products or services (BMW and Mercedes) ¾Those with products in the same general class or industry (BMW and Honda) ¾Those offering alternative means of solving a similar need (cars vs. bikes) ¾Those competing for the same consumer dollar (car vs. vacation) Competitor Analysis