STRATEGIC MARKETING, PORTER'S COMPETITIVE STRATEGY

2. Chapter8-INDUSTRY
AND COMPETITOR
ANALYSIS

4. INDUSTRY ANALYSIS is a business
research that focuses on the potential
of an industry.

5. 1) Actual and potential industry size
2) Industry growth
3) Industry structure
4) Industry setting
5) Industry attractiveness
6) Industry performance
7) Key success factors
8) Cost structure
Dimensions of an industry analysis

6.  Knowledge of industry size not only can help
evaluate investment decisions but also
serves to define market share of various
competitors.Estimate of industry size can be
based upon governtment source of trade
associations.Another approach is to obtain
competitor sales from published sources and
from competitor’s employees.

7.  After the size of the industry, the focus turns to the growth
rate.The best strategy is to identify and invest in growth
contexts and identify and disinvest from declining
situations.
 It refers to the structure in which economic and technical
forces operate.The following are the types of industry
structure:
1. PURE MONOPOLY (only one seller)
2. PURE OLIGOPOLY ( few sellers)
3. PURE COMPETITION (large number of sellers)
4. MONOPOLISTIC COMPETITION (combination of
monopoly & pure competition)
Industry Structure

8.  Industry setting deals with the pattern of
industries.Porter has classified the various
industries into five categories:
1. FRAGMENTED INDUSTRY
2. EMERGING INDUSTRY
3. MATURING INDUSTRY
4. DECLINING INDUSTRY
5. GLOBAL INDUSTRY

9.  It consists of various factors prevailing in the
industry concerned which affect the
profitability of an organisation.It is
determined by the following factors:
1. NATURE OF DEMAND
2. INDUSTRY POTENTIAL
3. PROFIT POTENTIAL

10.  It is related to the current & future factors
which determine the performance of an
industry, it is measured by the following
factors:
1. PROFITABILITY
2. OPERATIONAL EFFICIENCY
3. INNOVATION

11.  Identification of the key success factors for
strategic groups in the industry is very
important.There are specific assets & skills
that are needed to be successful and
perhaps even to survive.
 An understanding of the cost structure can
provide insights into present and future key
success factors.
Cost structure

12. 1. ANALYSIS OF COMPETITIVE
FORCES
2. COMPETITOR ANALYSIS
Competiton analysis should also
be taken to understand the exact
nature of opportunities and
threats.Two types of analysis are
required

13. An understanding of competitive forcs is
essesntial for a market-planner to survive the
competition and sustain its growth.Porter has
identified five forces
i. Threats of entry
ii. Bargaining power of buyers
iii. Bargaining power of suppliers
iv. Substitute products
v. Rivalry

14.  It can be defined as a set of activities which
examines the comparative position of
competing enterprises within a given
strategic sector.It helps in getting insights
into competitors’ strategies-past,present and
potential.It also provide basis for developing
future strategies to establish advantages
over its competitors.

15. 4)IDENTIFYING COMPETITORS’ RESPONSE PROFILE
3)EVALUATING COMPETITOR’S STRENGTHS & WEAKNESSES
2)ANALYSING COMPETITOR’S OBJECTIVES
1)STRATEGIC GROUP ANALYSIS

16. PORTER’S GENERIC COMPETITIVE
STRATEGY

17. 1. Cost Leadership
In cost leadership, a firm sets out to become the low
cost producer in its industry. The sources of cost
advantage are varied and depend on the structure of
the industry. A low cost producer must find and exploit
all sources of cost advantage. if a firm can achieve and
sustain overall cost leadership, then it will be an above
average performer in its industry.
2. Differentiation
In a differentiation strategy a firm seeks to be unique in
its industry along some dimensions that are widely
valued by buyers. It selects one or more attributes that
many buyers in an industry perceive as important, and

18. 3. Focus
The generic strategy of focus rests on the choice
of a narrow competitive scope within an industry.
The focuser selects a segment or group of
segments in the industry and tailors its strategy to
serving them to the exclusion of others.
The focus strategy has two variants.
(a) In cost focus a firm seeks a cost advantage in
its target segment, while in
(b) differentiation focus a firm seeks differentiation
in its target segment. Both variants of the focus
strategy rest on differences between a focuser's
target segment and other segments in the
industry.

19.  Competitive Intelligence is a process of gathering ,
analysing & applying information about what
competitors are intending to do both in short-term as
well as long-term.The following information is
analysed:
1. CURRENT AND PAST STRATEGIES OF
COMPETITORS
2. COMPETITOR’S ORGANISATION AND CULTURE
3. COST STRUCTURE

20.  SUBMITTED TO :
MRS PRAGATI MA’AM
 SUBMITTED BY:
DEEPALI KAPOOR