Bài giảng MARKETING MANAGEMENT LECTURE NOTES: chap 4 analyze competitors

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Potential
competitors

Michael Porter’s
competitive five forces
Define the competitors

Threat of new
competitors

Power of
suppliers

Suppliers

Current
competitors

Analyze the competitors
Threat of
subtitution

Competition strategies
Prepared by: Huỳnh Hạnh Phúc

Customer
Power of
customer

Substitute
products

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Definition:

The process of identifying major
competitors, assessing their objectives,
strategies, strengths and weaknesses,
and selecting which competitors to
attack or avoid

1. Who the competitors are
2. What the competitors’ objectives are
3. What their strategies are
4. What their strengths and
weaknesses are
5. What their reaction patterns are
6. Who to confront and how to avoid

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Competitors could be

Brand competitors

Product competitors

DIRECT (within the same industry or market sector)
INDIRECT (competing for the consumer dollarsubstitutes)
LATENT (potential threats)

•
•
•
•

•
•
•
•

Same product
Same segmentation
Same price
Pepsi & Coca Cola, 7 Up & Sprite

Same product
Different segmentation
Different price
7 Up & Xá xị Chương Dương

Generic competitors

Total budget competitors

• Different product. Provide same
function. Eg. drink, transports, etc.
• It attempts to satisfy the same basic
customer need. Pepsi & sugar cane,
ice tea

- It would be any companies that have a
same costs
- Customer can spend 7000 VND (7up’s
price) for many different kind of
products

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BRAND COMPETITORS

PRODUCT COMPETITORS

GENERIC COMPETITORS

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TOTAL BUDGET COMPETITORS

 Each competitor has a mix of objectives.
 The company wants to know the relative importance

that a competitor places on current profitability,
market share growth, cash flow, technological
leadership, service leadership, and other goals.
 Knowing a competitor’s mix of objectives reveals

whether the competitor is satisfied with its current
situation and how it might react to different
competitive actions.

more that one firm’s strategy
resembles another firm’s strategy, the
more the two firms compete.
A strategic group is a group of firms in
an industry following the same or a
similar strategy in a given target market
The

 A company must also monitor its competitors’

objectives for various segments

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 Marketers need to assess each competitor’s strengths

and weaknesses carefully in order to answer the critical
question: What can our competitors do?

Development rate
Market share

 As a first step, companies can gather data on each

competitor’s goals, strategies, and performance over the
last few years.
 Companies normally learn about their competitors’
strengths and weaknesses through secondary data,
personal experience, and word of mouth.

R&D

Production

Profitability
Objectives
Strategy

HR
Customer’s perception

Target market

Marketing & brand

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Product Segmentations

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Normal
toothpaste

Fluoride
toothpaste
Gel
toothpaste

ColgatePamolive

ColgatePamolive

ColgatePamolive

P&G, P/S

P&G, P/S,
Unilever

P&G,
Unilever

ColgatePamolive

ColgatePamolive

ColgatePamolive

P&G, P/S

P&G, P/S

P&G, P/S

ColgatePamolive

ColgatePamolive

ColgatePamolive

P&G,

P&G, Unilever

P&G,

Unilever

Kid

19-35 years old

From 36 years
old

 What will our competitors do?

What are they looking
for?

 A competitor’s objectives, strategies, and strengths and

weaknesses go a long way toward explaining its likely
actions. They also suggest its likely reactions to
company moves such as price cuts, promotion increases,
or new-product introductions.
 Each competitor reacts differently.

What does it motivate
competitors?

Customer segmentation

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Biti’s

 Strong or Weak Competitors: Most companies prefer to

compete against weak competitors. This requires fewer
resources and less time. But in the process, the firm may
gain little.
 Close or Distant Competitors: Most companies will
compete with close competitors—those that resemble
them the most—rather than distant competitors.
 “Good” or “Bad” Competitors: Good competitors play

by the rules of the industry. Bad competitors break the
rules. They try to buy share rather than earn it, take large
risks, and in general shake up the industry

Converse

Strategy
Marketing
R&D
HR
Finance
Customer’s
perception

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1. Read the content of chapter 5 and analyze

your company’s customer behavior

2.

and the factors that impact to the
customer behavior
Present the implication of the analysis
result (Customer insight)

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