The PPT presents at length the idea of dealing with competition. Includes Porter's 5 Force model. Segment rivalry. Various examples and relevant cases are included.

1. Dealing with competition
Adnan Khan

2. Introduction
• Ever hear the saying, Never underestimate your
opponent? The same holds true for business.
• Whether you’re a startup owner or veteran, you
need to know how to deal with competitors in
business.
• Have a general idea of where my competitors are,
where they’re going, and how fast they’re going
to get there.

3. The 5 competitive forces / Porter’s
Five Forces

4. 1. Intense segment rivalry
2. New entrants
3. Substitute products
4. Buyers growing bargaining power
5. Suppliers growing bargaining power

5. 1.Intense segment rivalry
• The intensity of rivalry among competitors in
an industry refers to the extent to which firms
within an industry put pressure on one
another and limit each other’s profit potential.
• Porter’s intensity of rivalry in an industry
affects the competitive environment and
influences the ability of existing firms to
achieve profitability.

6. Examples

9. 2. New entrants
• According to Porter’s 5 forces, threat of new
entrants is one of the forces that shape the
competitive structure of an industry.
• For example, a high threat of entry means
new competitors are likely to be attracted to
the profits of the industry and can enter the
industry with ease.

10. • The threat of new entrants Porter created
affects the competitive environment for the
existing competitors and influences the ability
of existing firms to achieve profitability.
• Thus, Porters threat of new entrants definition
revolutionized the way people look at
competition in an industry.

11. Examples

13. 3.Substitute products
• According to Porter’s 5 forces, threat of
substitutes shapes the competitive structure
of an industry.
• The availability of a substitution threat effects
the profitability of an industry because
consumers can choose to purchase the
substitute instead of the industry’s product.

14. Examples

18. 4.Buyers growing bargaining power
• According to Porter’s 5 forces industry analysis
framework, buyer power is one of the forces
that shape the competitive structure of an
industry.
• A strong buyer can make an industry more
competitive and decrease profit potential for
the seller.

19. Examples

21. 5. Suppliers growing bargaining power
• According to Porter’s 5 forces industry analysis
framework, supplier power, or the bargaining
power of suppliers, is one of the forces that
shape the competitive structure of an industry.
• Strong suppliers can pressure buyers by raising
prices, lowering product quality, and reducing
product availability. and increases profit potential
for the buyer.

22. • All of these things represent costs to the
buyer. A strong supplier can make an industry
more competitive and decrease profit
potential for the buyer.
• On the other hand, a weak supplier, one who
is at the mercy of the buyer in terms of quality
and price, makes an industry less competitive

23. Examples

25. Identifying and analyzing
competitors

26. • Determining category
The products or sets of products with which
brand competes and which a brand competes
and which function as close substitutes.
• Actual and potential competitors
A company is more likely to be hurt by
emerging competitors or new technologies
than by current competitors.

27. • Brand Competitors - Such type of competitors are those who
market exactly similar products, at similar price, and also to the
same customers. For example, Pepsi and Coca-Cola.
• Product Competitors - Such type of competitors are those who
market similar products, but with different features and benefits,
and at different prices. For example, Pepsi and Maaza (fruit drink).
• Generic Competitors - Such type of competitors are those who
market different products, but provide the same utility or benefit.
For example, Audio cassettes and CDs, or Pepsi and Water
• Total Budget Competitors - Such type of competitors are those who
market different products, but competing for the same financial
resources of the customers. For example, Pepsi and Potato-chips.

28. Examples

29. • Analyzing Competitors
Competitor analysis helps an organization to identify
opportunities for and threats to the organization from
the competitive industrial environment.
Competitor analysis is an assessment of the strengths
and weaknesses of current and potential competitors.
It is an essential component of corporate strategy;
while formulating organization's strategy, managers
must consider the competitor organization's strategies.

30. Strategies for market leaders

31. • Competitive Strategies helps in:
1. Building profitable customer relationships
2. Gaining competitive advantage
3. Analyzing their competitors

32. Example
Johnson & Johnson uses one marketing
strategy for its common product such as
BAND-AID & Johnson’s baby products; and
different marketing strategy for its High Tech
healthcare products such as Vicryl Plus,
antibacterial surgical sutures or NeuFlex finger
joint implants

33. Balancing customer and
competitor orientations

34. • A successive business enterprise is one which achieves
both purposes, you cannot have one without the other.
The firm’s customer orientation will determine the how
much value it is able to create for the customer. A
customer-centered company will be in good position to
identify new opportunities, be more not be able to
sustain this performance if not enough attention is
paid to the industry structure and its own ability to
capture the value created.

35. • The firm’s competitive position in the industry will
determine whether it is able to capture or compete
away the value that it creates. In industries specially
where there is fierce internal rivalry companies tend to
develop a competitor obsession, carefully watching
every move made by competitors, analyzing its impact
on the company.
• This forces a company to become too reactive to
competitors, forsaking consistency of strategy. Such
companies tend to lose sight of customers and the
impact of competition on customers.