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A Model of Competitive AdvantageMINISTRY OF EDUCATION AND SCIENCE OF THE REPUBLIC OF KAZAKHSTAN SULEYMAN DEMIREL UNIVERSITY FACULTY OF ECONOMICS
COURSE WORK THE PRINCIPLES OF MARKETING Competitors
Prepared by: Maksatzhan Khakim Group: Management 2 Checked by: Ramiz Akhmedov
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.
COMPETITIVE ADVANTAGE When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The goal of much of business strategy is to achieve a sustainable competitive advantage. Michael Porter identified two basic types of competitive advantage:
A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Thus, a competitive advantage enables the firm to create superior value for its customers and superior profits for itself. Cost and differentiation advantages are known as positional advantages since they describe the firm's position in the industry as a leader in either cost or differentiation. A resource-based view emphasizes that a firm utilizes its resources and capabilities to create a competitive advantage that ultimately results in superior value creation. The following diagram combines the resource-based and positioning views to illustrate the concept of competitive advantage:
A Model of Competitive Advantage
Date: 2016-03-03; view: 471
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