5 Key points to remember

1. Chapter 11
Competitive Dynamics
By:
Richelle Anne Mae D. Sayenga

2. 5 key points.
#LeadFollowAndChallengeTheMarket
#MarketsChange
#WhereAreYou
#FindANiche
#Innovate

3. #LeadFollowAndChallengeTheMarket
• Lead the market – A market leader has the largest market share,
usually leads in price changes, product introductions etc. To simply
put it, “You become the first product that comes to mind”.

4. #LeadFollowAndChallengeTheMarket
• Follow the market – A firm must become flexible. A firm must also
consider current trends in the market. In that way, they are able to
identify demand, and study and find ways on how remain as market
leaders.

5. #LeadFollowAndChallengeTheMarket
• Challenge the market – After knowing the trends, a firm must then
find ways to innovate with regards to adopting to changes in market
trends. The main goal here is to eventually “Beat The Market”

6. #MarketsChange
• Firms reformulate their market strategies several times.
• Products, customer preference and brands change over time.
Marketers must also respond accordingly.
• Differentiate and focus less on the abstract goal, of rising above
competitive clutter and focus more on “openings left/overlooked by
value players’ business models.

7. #WhereAreYou
• Do research. Know your market share, your customers, and most
importantly, your competitors.
• Defend your market.
• While trying to expand total market size, the firm must also be ACTIVE in
defending its business models.
• Marketers need to protect areas where their business model give other
companies room to maneuver.
• Find your customers
• Every market has the potential to attract buyers who are unaware of the
product, are resisting because of uncertainty about the product.

8. #FindANiche
• An alternative to being a “Market Follower” is becoming a leader in a
small segment of a market.
• Other firms normally avoid competition with large forms by targeting
small markets which are of no interest to the larger firms.

9. #Innovate
• Never stop doing research.
• Know the needs of your customers.
• Find ways to improve, not only on your product/service, but also ways
that customer’s lives can potentially improve when they use your
product or acquire your services.
• Innovate to “Beat the Market”

10. Important things to remember.
• Know where you are in the market
• Know you customers and your competitors.
• Establish your market share and protect it.
• Continuously drive for innovation.
• In innovation, it is important to consider the changes and benefits that your
product can provide to your customers.
• “Beat the Market”

11. Chapter 11
Competitive Dynamics
By:
Richelle Anne Mae D. Sayenga