INTRODUCTION

COURSE WORK THE PRINCIPLES OF MARKETING

Competitiveness in Market

Prepared by: Maksatzhan Khakim

Group: Management 2

Instructor: Ramiz Akhmedov

Kaskelen 2012

Contents

1.INTRODUCTION.. 2

2. MAIN PART

2.1 COMPETITIVE ADVANTAGE. 3

2.1.1 Resources and Capabilities. 4

2.1.2 Cost Advantage and Differentiation Advantage. 4

2.2 STRATEGY - COMPETITOR ANALYSIS. 5

2.2.1 Steps in Analyzing Competitors. 6

1 step - Identifying the company’s competitors. 6

2 step - Determining the competitors’ objectives. 7

3 step - Identifying the competitors’ strategies. 7

4 step - Assessing competitors’ strengths and weakness. 8

5 step - Estimating the competitors’ reactions. 8

6 step - Selecting competitors to attack and avoid. 8

2.3 BASIC COMPETITIVE STRATEGIES. 9

2.3.1 Competitive Advantage. 9

2.3.2 Competitive Strategies. 9

2.3.2.1 Strategy - Differentiation. 10

2.3.2.2 Strategy - Cost Leadership. 11

2.3.2.3 Strategy - Differentiation Focus. 11

2.3.2.4 Strategy - Cost Focus. 11

2.4 COMPETITIVE MARKETING STRATEGIES. 12

2.4.1 Market-Leader Strategies. 12

2.4.2 Market-Challenger Strategies [Expanding Market Share] 13

2.4.2.1 Attack Strategies. 13

2.4.3 Market-Follower Strategies. 14

2.4.4 Market-Nicher Strategies. 14

2.5 BALANSING CUSTOMER & COMPETITOR ORIENTATION.. 14

3. CONCLUSION.. 15

4. REFERENCES. 16

INTRODUCTION

Under the Marketing concept, companies gain competitive advantage by designing offers that satisfy target consumer needs better than competitor’s offers

To plan effective marketing strategies, the company needs to find out all it can about its competitors. It must constantly compare its products, prices, channels, and promotion with those of close competitors. In this way the company can find areas of potential competitive advantage and disadvantage.

Competition has been studied in several fields, including psychology, sociology and anthropology. Social psychologists, for instance, study the nature of competition. They investigate the natural urge of competition and its circumstances. They also study group dynamics, to detect how competition emerges and what its effects are. Sociologists, meanwhile, study the effects of competition on society as a whole. In addition, anthropologists study the history and prehistory of competition in various cultures. They also investigate how competition manifested itself in various cultural settings in the past, and how competition has developed over time

Date: 2015-01-12; view: 730