9

Dealing with
Competition

Kotler

Koshy

Keller

Jha

Five Forces Determining Segment

Structural Attractiveness
Potential entrants
Suppliers
Buyers
Industry competitors
Substitutes

Industry Concept of
Competition
Number of sellers and degree of
differentiation
Entry, mobility, and exit barriers
Cost structure
Degree of vertical integration
Degree of globalization

Industry Concept of
Competition
Pure monopoly
Oligopoly
Monopolistic competition
Pure competition

Analyzing Competitors
Share of market
Share of mind
Share of heart

Expanding the Total

Market

New customers
More usage

Six Types of
Defense Strategies
Defender
Flank
Preemptive
Counteroffensive
Mobile
Contraction

Factors Relevant to
Pursuing Increased Market
Share

Possibility of provoking antitrust

action
Economic cost
Pursuing the wrong marketing-mix
strategy
The effect of increased market share
on actual and perceived quality
8

Other Competitive
Strategies

Market challengers
Market followers
Market nichers

Market Challenger
Strategies

Define the strategic objective and

opponents
Choose a general attack strategy
Choose a specific attack strategy

10

General Attack
Strategies

Frontal attack
Flank attack
Encirclement attack
Bypass attack
Guerrilla warfare

11

Specific Attack
Strategies
Price discounts
Lower-priced
goods
Value-priced goods
Prestige goods
Product
proliferation

Product innovation
Improved services
Distribution
innovation
Manufacturingcost reduction
Intensive
advertising
promotion
12

Market Follower
Strategies

Counterfeiter
Cloner
Imitator
Adaptor

13

Balancing Orientations
Competitor-centered
Customer-centered

14