Giáo án Marketing Management Chapter 11 Dealing With Competition How do marketers identify primary competitors? How should we analyze competitors’ strategies, objectives, strengths, and weaknesses? How can market leaders expand the total market and defend market share? How should market challengers attack market leaders? How can market followers or nichers compete effectively?
Dealing With Competition Chapter 11 Chapter Questions How marketers identify primary competitors? How should we analyze competitors’ strategies, objectives, strengths, and weaknesses? How can market leaders expand the total market and defend market share? How should market challengers attack market leaders? How can market followers or nichers compete effectively? Contents • Competitive forces • Identifying competitors • Analyzing Competitors • Competitive Strategies for Market leaders • Other Competitive Strategies • Balancing customer & competitor Orientation • Debate & Discussions Competitive Forces Section Progressive Competes on Marketing Programs Progress Insurance Specialized in a small niche of the auto insurance business –”nonstandard” insurance Acquired a solid understanding of what it costs to serve various types of customers and how to make a profit Gained its truly sustainable competitive advantage in the mid-1990s:the one of the first auto insurance companies to sell direct to consumers via Internet Progress Insurance (cont’d) offered a unique service: ◦ ◦ ◦ ◦ Quotes from up to three competitors Its policies were more competitively priced Cut a check right at accident scene “Accident concierge” service From 1996 to 2005: ◦ Growth: average of 17% per year, ◦ Revenue: from $3.4 billion to $14 billion By 2006: the 3rd-biggest auto insurer in the US, up from 48th in 1980, with 12 million customers Competitive Forces Potential entrants Supplier power Industry competitors Substitutes Buyer power Identifying Competitors Section Industry Concept of Competition Industry is a group of firms that offer a product or class of products that are close substitutes for one another Industries are classified in terms of: ◦ ◦ ◦ ◦ ◦ Number of sellers and degree of differentiation Entry, mobility, and exit barriers Cost structure Degree of vertical integration Degree of globalization