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COMPETITIVE
STRATEGIES

Presented by You Exec

 PORTER’S FIVE FORCES

SUPPLIER POWER THREAT OF NEW ENTRANTS

High Bargaining power due to the fact that Low, because the market is highly saturated and substantial
the demand is high globally, and raw materials amount of financial resources associated with buildings and
can only be produced in certain geographical properties are required in order to make market entry.
areas.
COMPETITIVE
RIVALRY
High, within the industry. Our company
has major competitors from around the
world, from both household large name

brands and more local, independent

labels.

Substantial, a wide of easily accessible substitutes can be Very High, because there is minimal switching cost for
produced, both in terms of products and where the products customers, and there is an abundance of offers available
can be bought from. to them.

BARGAINING POWER OF
THREAT OF SUBSTITUTION
BUYERS
 COMPETITIVE ADVANTAGE: What makes the company strong?

COSTS DIFFERENTIATION

MARKET SCOPE: What part of the market is being targeted?

COST LEADERSHIP DIFFERENTIATION

ENTIRETY
PORTER’S Strategy: be the most competitive company in
cost in the entire market
Strategy: be a distinctive company, recognize for its
uniqueness, quality or personality

GENERIC
COMPETITIVE
STRATEGIES DIFFERENTIATION
SEGMENT COST FOCUS
FOCUS
Strategy: be very competitive in cost in a
Strategy: have a differentiated product or
particular product or niche
market niche
 PORTER’S GENERIC COMPETITIVE STRATEGIES
STRATEGY LEADERSHIP
TYPE
• Ample investments and access to
Commonly required skills
capital
and resources • Process innovation and
improvement
• Effective supervision of workforce
• Products designed for ease of
manufacturing
• Cost-effective distribution
• Comprehensive cost control
General organizational
• Frequent detailed inspection reports
requirements
for QA
• Well-structured organization and
responsibilities
• Incentive system based on
compliance with targets and realistic
performance goals
DIFFERENTIATION FOCUS
• Effective marketing skills • Significant investments and access
to capital
• Product engineering
• Constant process innovation and
• Solid research and development
improvement
• Solid reputation for quality and
• Close supervision of workforce
technological leadership
• Products designed for ease of
• Long industry tradition and legacy
manufacturing
• Close, long-lasting relationship and
• Cost-effective distribution system in
collaboration with procurement and
place
distribution partners
• Close coordination of activities in R&D, • Combination of both cost leadership
product development and marketing and differentiation measures directed at
the specific strategic target
• Human analysis-drive evaluations and
incentives instead of strictly quantitative
criteria
• Infrastructures to attract highly qualified
talents and workers
 INDUSTRY ATTRACTIVENESS EXAMPLE

FORCE THREAT TO PROFIT (PRESENT) THREAT TO PROFIT (FUTURE)

Internal rivalry High High, will increase

Threat to entry Low Moderate

Substitutes High High

Bargaining power of buyer High High, will increase

Bargaining power of supplier Low Moderate

 BLUE OCEAN: CREATE STRATEGY CANVAS

STEP 1:
List the products or services to be compared - include as many as desired but recommended under four

STEP 2:
List the product attributes and/or factors of competition - only include those that create value for the customer.

STEP 3:
Rate each product or service on a scale of 0-5: 5 being the best, 1 being the worst and 0 being non-existent

• Note that when scoring the price attribute to do so from the perspective of the value created to the consumer - e.g. if the price is low,
the factors score should be high

• Note that scoring data can be obtained one of two ways:

1) Your own perspective based on your knowledge of the market – a faster method though not
recommended

or 2) Data-backed real consumer survey results

STEP 4:
For your product, manipulate your factors of competition by raising, reducing, eliminating, or creating new factors
 BLUE OCEAN: CREATE STRATEGY CANVAS

PRODUCT TO BE COMPARED PRODUCT A PRODUCT B PRODUCT C WEIGHTED SCORES PRODUCT A PRODUCT B PRODUCT C

Attributes or competition factors 1-5 ratings 1-5 ratings 1-5 ratings Factor weight (1-5) Score Score Score

Attribute A 4 2 2 0 0 0

Attribute B 2 3 3 0 0 0

Attribute C 3 5 5 0 0 0

Attribute D 3 2 2 0 0 0

Attribute E 3 1 1 0 0 0

Attribute F 5 1 1 0 0 0

Attribute G 0 3 3 0 0 0

Total Value Score 0 0 0

 BLUE OCEAN: STRATEGY GRAPH

PRODUCT A PRODUCT B PRODUCT C

0
Attribute A Attribute B Attribute C Attribute D Attribute E Attribute F Attribute G

STRENGTH
• Top provider of ultra-high-speed
services
• Successfully launched a new product
line and three new features for
existing products
• Own our own network without
reliance on third-party providers
ENABLER
SWOT ANALYSIS
WEAKNESS
• Older company, seen as a bit
traditional and stuck in the past
especially by the younger
demographic
• Content provision – especially in
areas of entertainment
• Leadership team has recently
changed. Organizational instability
CHALLENGE
OPPORTUNITIE
THREATS
S
• Work closely with providers to secure • Increase competition, especially from
exclusive distribution contract new entertainment channels
• Build on a successful product launch, • Changes in government regulations and
re-invigorate brand local laws
• Capitalize on ownership of an ultra- • Competition stepping up with innovative
high-speed network and effective marketing and advertising
rapidly
ENABLERS CHALLENGE
 STRATEGIC GROUP ANALYSIS MAP

GEOGRAPHIC COVERAGE

HIGH
Brand group B Brand group C

Brand group A
PRICE / QUALITY

MEDIUM
Brand group D Brand group E

Brand group I

LOW
Brand group G

Brand group H
Brand group F

LOW MEDIUM HIGH

 High
MARKET GROWTH RATE
QUESTION MARKS STARS
BCG GROWTH-
SHARE MATRIX
DOGS CASH COWS

Low
Low RELATIVE MARKET SHARE High

PORTFOLIO LEVEL ANALYSIS

DOGS CASH COWS QUESTION MARKS STARS

Dogs hold low market share compared to Cash cows are the most profitable brands and Question marks are the brands that hold low Stars operate in high growth industries and
competitors and operate in a slowly growing should be “milked” to provide as much cash as market share in fast growing markets consuming maintain high market share, Stars are both cash
market possible. large amount of cash generators and cash users
 High Relative Market Size Low
BCG GROWTH-
STARS QUESTION MARKS
SHARE MATRIX
High

• Product A • Product C
• Product B • Product E
• Product F
Cash Flow
Market Growth Rate

Desired Movement

CASH COWS DOGS

• Product G • Product I
• Product H • Product j
Divest
Low
PERCEPTUAL MAP FOR
Identify key attributes that are relevant for your market and set them as axis on the map below. For a single brand
you may have multiple perceptual maps on varying axis. Another good idea is to put the competing brand logos
here next to the dots instead of the <Brand X> text. You can also show where you want your brand to move or map

COMPETITIVE other brand movements with this tool.

ANALYSIS HIGH QUALITY

XYZ Co. Brand 1

Brand 4

Brand 7 XYZ Co.

Brand 3
Brand 5

HIGH COST
LOW COST

Brand 5

Brand 2

Brand 13
Brand 6 Brand 9

Brand 12 Brand 14
Brand 11
Brand 10

Brand 15

LOW QUALITY
 COMPETITIVE PRICING

FIRM A:
COSTLY PRICING METHOD

Complex
Product Pricing Firm A Price
Method

Competitive Pricing Market

FIRM B
COMPETITIVE PRICING

Firm B Price
Product
= Firm A Price
 PRICING BELOW COMPETITION

SCENARIO A SCENARIO B SCENARIO C

You charge only $5 on average for the

Your average sales price is $7 (after But, in scenario C, suppose that by
phone case in hopes of driving more sales
accounting for repricing) and you dropping your price from $7 to $5
by being more competitive on price. In
make 100 sales in January for a total you manage to increase your January
order to equal the $500 profit you earned
revenue of $700 and a total profit of sales to 180 units, earning you $700
in scenario A, you'd have to sell an
$500: in profit, or an additional $200:
additional 40 units in scenario B:

($7 average sales price) x (100 sales) ($5 average sales price) x (140 sales) ($5 average sales price) x (180 sales)
= ($700 in revenue) - ($200 in costs) = ($700 revenue) - ($200 in costs) = ($900 revenue) - ($200 in costs)
= $500 profit = $500 profit = $700 profit
 PRICE MATCHING

Match local Match local

Match specific online Chain will match prices offered
competitors’ competitors’ online
retailer prices by these online-only retailers
in-store prices retailer prices

Ecommercewebsite.com

Websitea.com; websiteb.com; websitec.com

Ecommercewebsite.com

Authorized dealers

Authorized dealers

Ecommercewebsite.com
 COMPETITIVE PRICING ANALYSIS
OUR PRODUCT PRICING COMPETITOR PRICING

PRICE RIVALS DIFF

Product in comparison:
Product A $120 $105-$115 +12.50%
Product A
Product B $72 $52-$85 +27.58%
Our Company $120

COMPETITOR CURRENT PRICE

1,522 Products Website A $105

+29% Retailer A $110

Your product are +29%
more expensive on Retailer B $115
average

-15% -10% -5% 0% 1% 5% 10% 15%

Cheaper Equal Price More Expensive

310 Products 854 Products 388 Products
Jan Mar May Jul Sep
COMPETITOR IDENTIFICATION DIRECT COMPETITOR
1
Same customer, Problem and Product Category

DIFFERENT PROBLEM
2
Solving a different problem for the same customer but in a
Customer 4 Problem similar way
(Who) (What)

1 DIFFERENT CUSTOMER (INDUSTRY/VERTICAL)

2 3 3
Solving the same problem in a similar way but for different
customers

Solution / Product
(How) DIFFERENT PRODUCT CATEGORY
4
Solving the same problem for the same customer but using
different approach
 COMPETITOR IDENTIFICATION

CUSTOMER PROBLEM SOLUTION

WHO WHAT HOW

US VS. COMPETITOR A
(DIRECT COMPETITOR)

US VS. COMPETITOR B Different Problem

US VS. COMPETITOR C Different Customer

US VS. COMPETITOR D Different Solution

 COMPETITIVE RESEARCH
COMPANY A
Company A provides the most popular business
solution at the moment. It is highly established
and lauded as an effective solution. Its success
continues to be driven by brand recognition and
its ability to bill any contracted services.
Running: 12 Years
CEO: Jacob Johnson
Size: 300-500
Revenue: $66M - $83M
COMPANY B
Company B is similar to us because it is
software designed to shape various
workplace processes. It is a tracking tool,
registration tool, interaction tool and more.
However, it does not have the freedom to
create new, custom implementation the way
our users can. As a software, it is the best on
the market.
Running: 7 years
CEO: Jessica Robertson
Size: 90-150
Revenue: $24M - $35M
COMPANY C
Company C is specifically intended to improve
communication. While it does not factor in as a
direct competitor to momentum, the service
aligns with the needs of its users well. At time,
due to its ease of implementation, it is seen as a
valid alternative to our product and solutions.
Running: 4 years
CEO: Damian Smithson
Size: 30-70
Revenue: $12M - $18M
 CORE COMPETENCY ANALYSIS

Existing Core Competency Existing Core Competency Existing Core Competency

SITUATIONS

Potential core competency Potential core competency Potential core competency

ACTIONS

Try again, this time involve more people in

Identify how to develop and improve each Identify which core competency it makes
the discovery process, such as customers and
core competency sense to invest in and develop
outside facilitator
 COMPETENCY TO PRODUCTS:
COMPANY COMPARISON

CORE COMPETENCY CORE PRODUCT END PRODUCT

Ability to miniaturized
COMPANY A Portable music device Product name A
consumer electronics

Indexing technologies &

COMPANY B Cloud based productivity tools Product name B
large-scale hardware

Strong brand and Easy plug-and-play

COMPANY C Product name C
taste-making “authority” web design tools
TESTING CORE COMPETENCY 1 COMPETENCY 2 COMPETENCY 3

COMPETENCIES

Does it provide customer benefits?

Is it difficult to imitate?

Can it be leveraged widely?

 CORE COMPETENCY TABLE ANALYSIS

COMPETENCIES DESCRIPTION IMPORTANCE DEFENSIBILITY COMP. STRENGTH

What are our key strengths

What does this competency How strategic is it for the future? Can competitors copy it? 15+ = strategic capability
(technologies, assets, business model,
allow us to do ? (1=Low; 10=High) (1=Easy; 10=Hard) & likely differentiator
capabilities etc.) ?

Technology Research & development 10 5 15

Human resources and talent Product development 4 2 6

Secure and stable procurement and

Self sufficiency
sourcing 2 4 6

Ease of marketing and

Brand image
word of mouth 1 10 11

Distribution channels Alternatives and backup options 1 1 2

Customer loyalty Good NPS and retention 1 1 2

 MARKET SHARE COMPARISON
Absolute market size shows how our company is faring in terms of our
65m
competitors. It also enables outside investors to evaluate our company's
performance in the context of a larger market.
80m
55m It's one thing for our company to report sales figures on our own, but presenting
those figures in comparison to other companies in the same industry can paint a
much broader picture.

40m
OUR COMPANY

PRIMARY
COMPETITOR
SECONDARY
COMPETITOR
TERTIARY
COMPETITOR
 MARKET SEGMENTATION

OUR PRIMARY SECONDARY TERTIARY

COMPANY COMPETITOR COMPETITOR COMPETITOR

Age Age Age Age

20-30 30-35 25-40 20-35

Gender Gender Gender Gender

Both Both Female Both

Income Income Income Income

0-80k 50-120k 30-130k 0-100k

Employment Employment Employment Employment

Students/Employed Employed/Business Employed/Business Employed/Business
 VALUE TO USER

FINANCE SOCIAL
MINT FINANCE SOFTWARE ONLINE BANKING
NETWORK

Easily tracks and logs data from Steep learning curves; UI cluttered Inconsistent layout, difficult to Intuitive interfaces: simplified
EASE OF USE
multiple sites. with excessive features aggregate other sites features

Free to use; automated billing and Required initial investment and Integrated with bank account and
COSTS Users must contribute to add value
categorization. update fees bill pay

Powerful feature set for keeping International presence; strong

BENEFITS Saves time, saves money. Low quality user- generated advice
finances organized advertiser network, existing users
 PRODUCT PRICING COMPARISON
We’re taking this structured approach to know how effective our current pricing strategy is and if we can raise our
prices to increase upfront revenue without sacrificing customer loyalty.

Product One Product Two Product Three

4.3 2.4 2 2.5 4.4 2 3.5 1.8 3 4.5 2.8 5

Our Company Competitor 1 Competitor 2 Competitor 3

 PRODUCT FEATURE COMPARISON

Feature Feature Feature Feature Feature Feature Feature Feature Feature Feature Feature Overall
One Two Three Four Five Six Seven Eight Nine Ten Eleven Rating

OUR COMPANY 11

PRIMARY
9
COMPETITOR

SECONDARY
6
COMPETITOR

TERTIARY
17
COMPETITOR

Excellent [+] Poor [-]

 PRODUCT ASSESSMENT COMPARISON

PRODUCT FEATURES OUR COMPANY PRIMARY COMPETITOR SECONDARY COMPETITOR TERTIARY COMPETITOR

Design

Price

Performance

Quality

Additional functions

Equipment

Product service life

OVERALL ASSESSMENT 6 3 4 3
 SALES REVENUE COMPARISON

OUR COMPANY PRIMARY COMPETITOR

18M 15M 16M 13M

Previous Year Current Year Previous Year Current Year

SECONDARY COMPETITOR TERTIARY COMPETITOR

14M 11M 8M 11M

Previous Year Current Year Previous Year Current Year
 COMPETITIVE PORTFOLIO ANALYSIS

COMPETITOR A

CRITERIA (AREAS OF ADDITIONAL COMMENTS ON Poor Equal Better

CATEGORY
OBSERVATION) STRENGTHS & WEAKNESSES
1 2 3 4 5 6 7 8 9

Marketing and sales Text here ● ● ● ● ● ● ● ● ●

MARKET Sales structure/locations Text here ● ● ● ● ● ● ● ● ●

Price/performance ratio Text here ● ● ● ● ● ● ● ● ●

Quality Text here ● ● ● ● ● ● ● ● ●

PRODUCT Cost structure/ cost advantage Text here ● ● ● ● ● ● ● ● ●

Enterprise Text here ● ● ● ● ● ● ● ● ●

Liquidity Text here ● ● ● ● ● ● ● ● ●

FINANCES
Cost development Text here ● ● ● ● ● ● ● ● ●

Working climate Text here ● ● ● ● ● ● ● ● ●

STAFF
Staff training & education Text here ● ● ● ● ● ● ● ● ●

OVERALL ASSESSMENT Text Here ● ● ● ● ● ● ● ● ●

 COMPETITOR ANALYSIS TABLE

OUR COMPANY COMPETITOR 1 COMPETITOR 2 COMPETITOR 3 COMPETITOR 4

PRODUCT/ SERVICE Text here Text here Text here Text here Text here

PROFITABILITY Text here Text here Text here Text here Text here

FINANCIAL
Text here Text here Text here Text here Text here
RESOURCES

MARKET SHARE Text here Text here Text here Text here Text here

GROWTH Text here Text here Text here Text here Text here

MARKETING
Text here Text here Text here Text here Text here
STRATEGIES

STRENGTHS Text here Text here Text here Text here Text here

WEAKNESSES Text here Text here Text here Text here Text here

BUSINESS MODEL Text here Text here Text here Text here Text here
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