CREATING COMPETITIVE ADVANTAGE

To become successful, a company must consider its competitors plus its real and potential customers. In the procedure of performing a competitor analysis, the company carefully analyzes and collect information on competitors' schema and programs. A competitive smart system helps the company to gain and manage competitive information. The company has to then choose a competitive marketing strategy of it's possess.  The strategy selection depends on the company's industry position and its opportunities, objectives and resources. Numerous basic competitive strategies are shown in this chapter. Some are time-tested and some are relatively new.

Four prime competitive positions are reviewed in this Lesson.

First is market leader which faces three challenges: growing the total market, protecting market share, and going up market share. The market leader is interested in discovering ways to expand the entire market because it will benefit from any increased sales. The leader ought to also have an eye towards protecting its share. Several types of strategies for accomplishing this protection task are exit. Aggressive leaders also attempt to expand their own market share.

Second is that of the market challenger. This is a firm that insistently tries to expand its market share by offensive the leader, other runner-up firms, or smaller firms in the industry.

The third is that of the market follower that is designated like a runner-up firm that select not to rock the boat (usually out of terror that it stands to lose more than it may gain). At last, the market niche is a position option open to smaller firms that serve some of the part of the market that is not likely to draw the attention of the larger firms. These firms frequently survive by being specialists in some of the function that is attractive to the marketplace.

The competitive analysis of these four competitive position choice presented in this chapter is a really unique presentation and offers insight for all potential manager. This information may be used by every mid-level tactical planner who seeks insight into competitive schema dynamics.