TOP 2 Learning Concepts for<br />Chapter 11:<br />Dealing with Competition<br />Lady CharmayneHao<br />April 1, 2011<br />
What to expect?<br />Outline<br />What determines market segment?<br />How market followers strategize?<br />2<br />
What determines market segment?<br />3<br />Concept<br />Michael Porter’s Five Forces <br />
“Segment Rivalry” refers to competition among existing firms<br />4<br />Explanation of Concept:  Determining Market Segme...
5<br />Outline<br />Explanation of Concept<br />Explanation of Concept:  Determining Market Segment<br />“Threat of new en...
6<br />Outline<br />Explanation of Concept<br />Explanation of Concept:  Determining Market Segment<br />“Threat of substi...
7<br />Outline<br />Explanation of Concept<br />Explanation of Concept:  Determining Market Segment<br />“Buyer Power” ref...
8<br />Outline<br />Explanation of Concept<br />Explanation of Concept:  Determining Market Segment<br />“Supplier Power” ...
How market followers strategize?<br />9<br />Concept<br />Counterfeiter<br />Cloner<br />Imitator<br />Adapter<br />
10<br />Concept<br />Explanation of Concept<br />Explanation of Concept:  Market Follower Strategies<br />“COUNTERFEITER” ...
11<br />Concept<br />Explanation of Concept<br />Explanation of Concept:  Market Follower Strategies<br />“CLONER” emulate...
12<br />Concept<br />Explanation of Concept<br />Explanation of Concept:  Market Follower Strategies<br />“IMITATOR” copie...
13<br />Concept<br />Explanation of Concept<br />Explanation of Concept:  Market Follower Strategies<br />“ADAPTER” adapts...
Implement best strategies by dealing with competition!<br />1. Determine Market Segments<br />   2. Be aware of Market Fol...
TOP 2 Learning Concepts for<br />Chapter 11:<br />Dealing with Competition<br />Lady CharmayneHao<br />April 1, 2011<br />...
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Ch 11 dealing with competition. hao

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Transcript of "Ch 11 dealing with competition. hao"

  1. 1. TOP 2 Learning Concepts for<br />Chapter 11:<br />Dealing with Competition<br />Lady CharmayneHao<br />April 1, 2011<br />
  2. 2. What to expect?<br />Outline<br />What determines market segment?<br />How market followers strategize?<br />2<br />
  3. 3. What determines market segment?<br />3<br />Concept<br />Michael Porter’s Five Forces <br />
  4. 4. “Segment Rivalry” refers to competition among existing firms<br />4<br />Explanation of Concept: Determining Market Segment<br />How it occurs?<br />Number of Competitors<br />Exit Barriers<br />Switching Cost<br />Differentiation<br />Diversity<br />Quality<br />
  5. 5. 5<br />Outline<br />Explanation of Concept<br />Explanation of Concept: Determining Market Segment<br />“Threat of new entrants” refers to the threat existing competitors face upon new competitors<br />Barriers to entry:<br />Economies of scale<br />Product Differentiation<br />Capital Requirements<br />Switching Cost<br />Distribution Channel Access<br />Government Policies<br />Attractive if entry barriers are high and exit are low!<br />
  6. 6. 6<br />Outline<br />Explanation of Concept<br />Explanation of Concept: Determining Market Segment<br />“Threat of substitutes” refers<br />How?<br />Substitute Performance<br />Price<br />Quantity<br />Buyer’s Switching Cost<br />Substitutes place a limit on prices and profit!<br />
  7. 7. 7<br />Outline<br />Explanation of Concept<br />Explanation of Concept: Determining Market Segment<br />“Buyer Power” refers to customer’s price sensitivity and negotiating power<br />Factors affecting buyer power:<br />Number of customer<br />Size<br />Differences<br />Price Sensitivity<br />Switching Cost<br />Brand Identity<br />Substitutes place a limit on prices and profit!<br />
  8. 8. 8<br />Outline<br />Explanation of Concept<br />Explanation of Concept: Determining Market Segment<br />“Supplier Power” refers to market of inputs<br />Factors affecting supply power:<br />Supplier Concentration<br />Availability of Substitute Inputs<br />Product Differentiation<br />Buyer Willingness<br />Switching Cost<br />Substitutes place a limit on prices and profit!<br />
  9. 9. How market followers strategize?<br />9<br />Concept<br />Counterfeiter<br />Cloner<br />Imitator<br />Adapter<br />
  10. 10. 10<br />Concept<br />Explanation of Concept<br />Explanation of Concept: Market Follower Strategies<br />“COUNTERFEITER” duplicates a leader’s product<br />Where?<br />Why?<br />How?<br />Packages and sells product on the black market through disreputable dealers for financial gain!<br />
  11. 11. 11<br />Concept<br />Explanation of Concept<br />Explanation of Concept: Market Follower Strategies<br />“CLONER” emulates the leader’s products with slight variations<br />What?<br />How?<br />Product, name, and packaging are almost identical but cost less than the leader’s product!<br />
  12. 12. 12<br />Concept<br />Explanation of Concept<br />Explanation of Concept: Market Follower Strategies<br />“IMITATOR” copies few things but maintains differentiation<br />What?<br />How?<br />Packaging, advertising, pricing, or location differs from the leader!<br />
  13. 13. 13<br />Concept<br />Explanation of Concept<br />Explanation of Concept: Market Follower Strategies<br />“ADAPTER” adapts or improves leader’s product<br />What?<br />How?<br />Why?<br />Products might be sold to different markets but often grows into a future challenger!<br />
  14. 14. Implement best strategies by dealing with competition!<br />1. Determine Market Segments<br /> 2. Be aware of Market Followers Strategies<br />14<br />Summary<br />
  15. 15. TOP 2 Learning Concepts for<br />Chapter 11:<br />Dealing with Competition<br />Lady CharmayneHao<br />April 1, 2011<br />Source:<br />Kotler, Philip and Keller, Lane<br />Marketing Management, 13th edition<br />Pearson one, Prentice Hall, Inc., 2009<br />

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