Competitive

advantage

18
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 Competitor
analysis
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 Competitor
analysis
Identify Assess Choose
Competitors Competitors Competitors

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 Identify
competitors

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 Objectives

Strategy

Strengths/
Weaknesses

Reactions

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Education, Inc. Publishing
as Prentice Hall

Assess competitors
 Choose competitors
Strong vs. Close vs. Good vs.
Weak Distant Bad

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Uncontested
market space

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Competitive intelligence
system

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Strategy approaches

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 Competitor
analysis
ENTREPRENEURIAL

FORMULATED

INTREPRENEURIAL

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Basic strategies
OVERALL COST
LEADERSHIP

DIFFERENTIATION

FOCUS

MIDDLE OF THE
ROAD

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Cost leadership

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Differentiation
 Focus

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Middle of the road

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New strategies
OPERATIONAL
EXCELLENCE

CUSTOMER INTIMACY

PRODUCT
LEADERSHIP

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Operational excellence

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Customer
intimacy

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 Product leadership

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 Competitive Positions

Market leader Market challenger

strategies strategies

Market Market nicher

follower strategies
strategies

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as Prentice Hall
Expand total demand Strategies
Protect current market
Expand market share

LEADER
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Inc. Publishing as Prentice Hall
Challenge the leader Strategies
Play along
2nd Mover advantage

CHALLENGER
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Inc. Publishing as Prentice Hall
Learn from leader Strategies
Avoid development costs

FOLLOWER
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Specialization is key Strategies
Focus on:
markets, customers,
products, mixes

NICHER
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 Balance

CUSTOMER
ORIENTATION

COMPETITOR
ORIENTATION

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Competitor centered

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Customer centered

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 Market centered

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 Competitor vs Customer Orientations

Product Orientation Customer

NO

Orientation
Competitor Centered

Competitor Market Orientation

YES

Orientation

NO YES
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Customer Centered
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Publishing as Prentice Hall