This document discusses strategic planning and strategy formulation. It begins by defining strategy as making choices about how to compete and committing to specific actions. It then discusses how a company's strategy determines how it will grow, build loyalty, outcompete rivals, and operate each business function.
The document outlines Porter's five forces model for analyzing an industry's structure and competitive environment. It examines the power of buyers, suppliers, rivals, new entrants, and substitutes. For each force, it provides determinants to assess related to concentration, costs, product differentiation, and more. The goal is to evaluate threats and bargaining power within an industry.
Finally, the document discusses the strategic planning process, including analyzing internal strengths/
MF strategic marketing slides competitive advantage MFFuNk IN
This document discusses corporate strategy components and issues, including scope, objectives, development strategy, resource allocation, and sources of synergy. It also covers competitive advantage, defining it as creating value for customers that exceeds a firm's costs. Firms can achieve competitive advantage through cost leadership or differentiation. The value chain is discussed as analyzing where value is added across a firm's activities from raw materials to final consumers. Core competencies, which provide competitive advantage, are expertise in areas that can be applied widely and are difficult for competitors to imitate.
Developing competitive advantage and strategic focusAshraf Hlouh
The document discusses SWOT analysis and its application in marketing strategy. It defines SWOT analysis and explains its key elements - strengths, weaknesses, opportunities, and threats. It also discusses how to conduct a SWOT analysis, including developing a SWOT matrix and examining internal/external factors from the customer's perspective. The document provides tips for making SWOT analysis more productive, such as focusing analysis on specific products/markets, collaborating across business functions, and separating internal vs. external issues. The overall goal of SWOT analysis is to help identify competitive advantages and inform the strategic focus of a company's marketing efforts.
This document discusses competitive rivalry and competitive dynamics. It defines key terms and presents a model of competitive rivalry that examines the drivers, actions, responses and outcomes of competition. The model considers factors like awareness, motivation, ability, competitor analysis, and market conditions that affect competitive behaviors and dynamics. Temporary advantages can potentially lead to sustained competitive advantages if firms continuously develop new advantages before old ones erode.
This document analyzes industry situations, specifically fragmented industries. It defines fragmented industries as having no single dominant player, low barriers to entry, and firms that specialize to satisfy diverse customer needs. Examples given include fashion, restaurants, and professional services. The document discusses strategic options for industry leaders like fortifying their position and staying on the offensive, as well as strategies for runners-up like pursuing vacant niches. Thirteen commandments of successful business strategies are also outlined.
This document discusses competitor analysis and provides guidance on analyzing competitors. It outlines four key stages: collecting information on competitors, converting information to intelligence, analyzing and interpreting the intelligence, and countering competitor actions. Various marketing strategies are discussed that can be used to minimize losses to competitors and gain market share, drawing parallels between business competition and military warfare strategies. The importance of ongoing competitor monitoring is emphasized to stay aware of their strengths, weaknesses, and potential moves.
The document provides an overview of conducting a competitor analysis. It discusses identifying competitors and evaluating their strengths and weaknesses. It also outlines constructing a competitor array by defining the industry, determining key competitors, customers, and competitor strengths. The document then discusses aspects to profile for competitors such as background, financials, products, marketing, facilities, personnel, and strategies. It also notes the importance of monitoring competitors through media scanning and provides sources of competitor information. Potential new competition and competitive blind spots are also addressed.
MF strategic marketing slides competitive advantage MFFuNk IN
This document discusses corporate strategy components and issues, including scope, objectives, development strategy, resource allocation, and sources of synergy. It also covers competitive advantage, defining it as creating value for customers that exceeds a firm's costs. Firms can achieve competitive advantage through cost leadership or differentiation. The value chain is discussed as analyzing where value is added across a firm's activities from raw materials to final consumers. Core competencies, which provide competitive advantage, are expertise in areas that can be applied widely and are difficult for competitors to imitate.
Developing competitive advantage and strategic focusAshraf Hlouh
The document discusses SWOT analysis and its application in marketing strategy. It defines SWOT analysis and explains its key elements - strengths, weaknesses, opportunities, and threats. It also discusses how to conduct a SWOT analysis, including developing a SWOT matrix and examining internal/external factors from the customer's perspective. The document provides tips for making SWOT analysis more productive, such as focusing analysis on specific products/markets, collaborating across business functions, and separating internal vs. external issues. The overall goal of SWOT analysis is to help identify competitive advantages and inform the strategic focus of a company's marketing efforts.
This document discusses competitive rivalry and competitive dynamics. It defines key terms and presents a model of competitive rivalry that examines the drivers, actions, responses and outcomes of competition. The model considers factors like awareness, motivation, ability, competitor analysis, and market conditions that affect competitive behaviors and dynamics. Temporary advantages can potentially lead to sustained competitive advantages if firms continuously develop new advantages before old ones erode.
This document analyzes industry situations, specifically fragmented industries. It defines fragmented industries as having no single dominant player, low barriers to entry, and firms that specialize to satisfy diverse customer needs. Examples given include fashion, restaurants, and professional services. The document discusses strategic options for industry leaders like fortifying their position and staying on the offensive, as well as strategies for runners-up like pursuing vacant niches. Thirteen commandments of successful business strategies are also outlined.
This document discusses competitor analysis and provides guidance on analyzing competitors. It outlines four key stages: collecting information on competitors, converting information to intelligence, analyzing and interpreting the intelligence, and countering competitor actions. Various marketing strategies are discussed that can be used to minimize losses to competitors and gain market share, drawing parallels between business competition and military warfare strategies. The importance of ongoing competitor monitoring is emphasized to stay aware of their strengths, weaknesses, and potential moves.
The document provides an overview of conducting a competitor analysis. It discusses identifying competitors and evaluating their strengths and weaknesses. It also outlines constructing a competitor array by defining the industry, determining key competitors, customers, and competitor strengths. The document then discusses aspects to profile for competitors such as background, financials, products, marketing, facilities, personnel, and strategies. It also notes the importance of monitoring competitors through media scanning and provides sources of competitor information. Potential new competition and competitive blind spots are also addressed.
The document discusses different business-level strategies including cost leadership strategy, differentiation strategy, focused strategies, and integrated cost leadership/differentiation strategy. It explains that core competencies provide competitive advantage and strategies must exploit these to satisfy customer needs. Cost leadership is achieved through low cost production while differentiation provides unique value. The strategies can be used to address threats from competition and suppliers/buyers.
Industry and Competitor Analysis | Five Competitive Forces | Five Primary Ind...FaHaD .H. NooR
Industry and Competitor Analysis | Five Competitive Forces | Five Primary Industry Types | What Is Industry | Competitor Analysis | Studying Industry Trends |
Presenting this set of slides with name - Competitor Analysis Framework PowerPoint Presentation Slides. This is a one stage process. The stages in this process are Competitor Landscape Framework, Competitor Analysis Framework, Competitor Landscape Model.
The document discusses building a customer-focused organization and how customer satisfaction drives profits. It provides strategies for understanding customer needs through voice of the customer programs, measuring customer performance metrics, training employees, and handling complaints to increase customer retention and loyalty. Customer relationship management programs use customer databases and data mining to personalize interactions and improve relationships over time. While requiring significant investment, CRM can provide a competitive advantage when properly implemented based on a customer strategy.
"A strong market orientation does not occurs by mere proclamation. To attain a strong orientation, a business needs to adopt a market-based management philosophy. This means implementing a process for tracking market performance and restructuring an organization around market rather than products or factories and creating employee culture that is responsive to customers and changing market condition." -Robert J. Best
Course Introduction and Lecture slides for "Practice of International Trade", Department of International Business, Tunghai University. Utilizing the Export Import Management System V. 2.0 from JAI International (USA).
Gaining sustainable competitive advantage via AnalyticsSharad Gupta
Sharad Gupta has over 15 years of experience in analytics and consulting across risk, digital marketing, and strategy in banking and e-commerce. He has led teams and consulted for various financial institutions and companies. Currently he is the VP of E-Commerce and Analytics for APAC at VFS Global in Singapore. Previously he worked at McKinsey, Rocket Internet, I3 Consulting, GE Capital, and has extensive experience building analytics solutions, growth strategies, and digital marketing strategies.
The document discusses strategic positioning for companies. It covers topics like market positioning, differentiation, target segments, positioning strategies for different sectors, competitive landscape analysis, and product positioning maps. Specific strategies discussed include benefit, surrogate, corporate identity, category, user, application, quality/price, and attribute-based positioning. Metrics like competitive advantage, company standing, and ability to improve standing are evaluated for recommended strategic actions.
Presenting this set of slides with name - Competitor Analysis Templates Our Competitors Losing Market Gaining Market. Enhance your audiences knowledge with this well researched complete deck. Showcase all the important features of the deck with perfect visuals. This deck comprises of total of twenty eight slides with each slide explained in detail. Each template comprises of professional diagrams and layouts. Our professional PowerPoint experts have also included icons, graphs and charts for your convenience. All you have to do is DOWNLOAD the deck. Make changes as per the requirement. Yes, these PPT slides are completely customizable. Edit the colour, text and font size. Add or delete the content from the slide. And leave your audience awestruck with the professionally designed Competitor Analysis Templates Our Competitors Losing Market Gaining Market complete deck
This presentation gives the definition of competitor analysis, the important tool of competitor analysis namely competitor array with example, how to profile the existing competitors and how to find the new competitors.
This document discusses market-based management and market analysis. It covers defining market space and estimating potential, understanding market demand over the product lifecycle, and achieving market share. Specifically, it discusses how defining markets broadly opens opportunities, estimating market potential through demographic analysis, how demand and prices change over the product lifecycle stages, and using metrics like market development index and share development index to understand growth opportunities and build sales forecasts.
The document discusses business-level strategy and the value creating activities common to a cost leadership business-level strategy. It outlines activities across a firm's infrastructure, procurement, operations, logistics, marketing and sales, service, and supplier relationships that aim to minimize costs and maximize efficiency in order to achieve low prices and high sales volumes. The goal is to gain competitive advantage through low cost relative to competitors.
This document provides an overview of analyzing a company's external environment from a strategic perspective. It discusses the key components of situational analysis including the macroenvironment and microenvironment. It outlines seven questions to consider when analyzing an industry's competitive environment, including the dominant economic traits, competitive forces, drivers of change, success factors, and attractiveness. Several models are presented for assessing the five competitive forces of rivalry, potential entry, substitutes, supplier power, and buyer power. Factors that influence the strength of each competitive force are also discussed.
This complete deck is oriented to make sure you do not lag in your presentations. Our creatively crafted slides come with apt research and planning. This exclusive deck with thirty slides is here to help you to strategize, plan, analyse, or segment the topic with clear understanding and apprehension. Utilize ready to use presentation slides on Brand Valuation PowerPoint Presentation Slides with all sorts of editable templates, charts and graphs, overviews, analysis templates. It is usable for marking important decisions and covering critical issues. Display and present all possible kinds of underlying nuances, progress factors for an all inclusive presentation for the teams. This presentation deck can be used by all professionals, managers, individuals, internal external teams involved in any company organization. http://bit.ly/2SabkMr
The document discusses competitor analysis and strategies. It provides examples of how Japanese firms carefully studied US and European competitors in the 1960s to understand their strategies and penetrate foreign markets. In contrast, US firms were slow to analyze Japanese competitors. The document also discusses Nirma, an Indian company that grew rapidly by analyzing Hindustan Lever's strategies and launching lower-priced detergent products to target new market segments. It emphasizes the importance of carefully analyzing both direct and indirect competitors to better understand competitive threats and opportunities.
This document discusses evaluating a company's external environment. It covers:
1. The five forces model of competition - analyzing rivalry, threat of new entrants, substitute products, supplier power, and buyer power. Key factors that influence each force are identified.
2. Common drivers of industry change such as growth rates, technology, regulations. Their impact on industry attractiveness must be assessed.
3. Key success factors - the strategic elements, attributes, resources necessary for competitive success in an industry.
4. Strategic groups - clusters of rivals with similar competitive approaches and positions. Strategic group maps can assess competitors' market positions.
MF Strategic Marketing 1 strategy n strategic planning processFuNk IN
This document discusses strategic planning and strategy formulation. It begins by defining strategy as making choices about how to compete and committing to specific actions. It then discusses how a company's strategy determines how it will grow, build loyalty, outcompete rivals, and operate each business function.
The document outlines Porter's five forces model for analyzing an industry's structure and competitive environment. It examines the power of buyers, suppliers, rivals, new entrants, and substitutes. For each force, it provides determinants to assess related to concentration, costs, product differentiation, and more. The goal is to evaluate threats and bargaining power within an industry.
Finally, it discusses the strategic planning process, including analyzing internal strengths/weak
Organizational strategies can be categorized into three levels - corporate, business, and functional. Corporate strategies set the overall direction for an organization across multiple industries. Business strategies determine how a company will compete within a particular industry or market. Functional strategies are developed for individual business functions like marketing or production. The document discusses various frameworks for developing strategies at each level, including growth vs stability strategies, Porter's generic strategies, the BCG matrix, and the product lifecycle model.
MF strategic marketing strategic role of marketingFuNk IN
The document discusses the strategic role of marketing. It outlines that the primary purpose of marketing is to create long-term, mutually beneficial exchange relationships between an entity and its customers. Marketing managers now have expanded responsibilities, including charting organizational direction and contributing to strategic decisions that affect long-term performance. The marketing manager plays a key role in strategic planning by defining the business mission, analyzing situations, and developing strategies, objectives, and plans.
This document discusses the formulation of functional strategies within an organization. It covers the formulation of marketing, financial, production, logistics, research and development, and human resource strategies. For each functional area, key considerations for strategy formulation are provided, such as determining the optimal capital structure, selecting distribution channels, assessing staffing needs, and aligning HR practices with the overall corporate strategy. The document emphasizes that functional strategies must support and help implement the overall business strategy.
The document discusses different business-level strategies including cost leadership strategy, differentiation strategy, focused strategies, and integrated cost leadership/differentiation strategy. It explains that core competencies provide competitive advantage and strategies must exploit these to satisfy customer needs. Cost leadership is achieved through low cost production while differentiation provides unique value. The strategies can be used to address threats from competition and suppliers/buyers.
Industry and Competitor Analysis | Five Competitive Forces | Five Primary Ind...FaHaD .H. NooR
Industry and Competitor Analysis | Five Competitive Forces | Five Primary Industry Types | What Is Industry | Competitor Analysis | Studying Industry Trends |
Presenting this set of slides with name - Competitor Analysis Framework PowerPoint Presentation Slides. This is a one stage process. The stages in this process are Competitor Landscape Framework, Competitor Analysis Framework, Competitor Landscape Model.
The document discusses building a customer-focused organization and how customer satisfaction drives profits. It provides strategies for understanding customer needs through voice of the customer programs, measuring customer performance metrics, training employees, and handling complaints to increase customer retention and loyalty. Customer relationship management programs use customer databases and data mining to personalize interactions and improve relationships over time. While requiring significant investment, CRM can provide a competitive advantage when properly implemented based on a customer strategy.
"A strong market orientation does not occurs by mere proclamation. To attain a strong orientation, a business needs to adopt a market-based management philosophy. This means implementing a process for tracking market performance and restructuring an organization around market rather than products or factories and creating employee culture that is responsive to customers and changing market condition." -Robert J. Best
Course Introduction and Lecture slides for "Practice of International Trade", Department of International Business, Tunghai University. Utilizing the Export Import Management System V. 2.0 from JAI International (USA).
Gaining sustainable competitive advantage via AnalyticsSharad Gupta
Sharad Gupta has over 15 years of experience in analytics and consulting across risk, digital marketing, and strategy in banking and e-commerce. He has led teams and consulted for various financial institutions and companies. Currently he is the VP of E-Commerce and Analytics for APAC at VFS Global in Singapore. Previously he worked at McKinsey, Rocket Internet, I3 Consulting, GE Capital, and has extensive experience building analytics solutions, growth strategies, and digital marketing strategies.
The document discusses strategic positioning for companies. It covers topics like market positioning, differentiation, target segments, positioning strategies for different sectors, competitive landscape analysis, and product positioning maps. Specific strategies discussed include benefit, surrogate, corporate identity, category, user, application, quality/price, and attribute-based positioning. Metrics like competitive advantage, company standing, and ability to improve standing are evaluated for recommended strategic actions.
Presenting this set of slides with name - Competitor Analysis Templates Our Competitors Losing Market Gaining Market. Enhance your audiences knowledge with this well researched complete deck. Showcase all the important features of the deck with perfect visuals. This deck comprises of total of twenty eight slides with each slide explained in detail. Each template comprises of professional diagrams and layouts. Our professional PowerPoint experts have also included icons, graphs and charts for your convenience. All you have to do is DOWNLOAD the deck. Make changes as per the requirement. Yes, these PPT slides are completely customizable. Edit the colour, text and font size. Add or delete the content from the slide. And leave your audience awestruck with the professionally designed Competitor Analysis Templates Our Competitors Losing Market Gaining Market complete deck
This presentation gives the definition of competitor analysis, the important tool of competitor analysis namely competitor array with example, how to profile the existing competitors and how to find the new competitors.
This document discusses market-based management and market analysis. It covers defining market space and estimating potential, understanding market demand over the product lifecycle, and achieving market share. Specifically, it discusses how defining markets broadly opens opportunities, estimating market potential through demographic analysis, how demand and prices change over the product lifecycle stages, and using metrics like market development index and share development index to understand growth opportunities and build sales forecasts.
The document discusses business-level strategy and the value creating activities common to a cost leadership business-level strategy. It outlines activities across a firm's infrastructure, procurement, operations, logistics, marketing and sales, service, and supplier relationships that aim to minimize costs and maximize efficiency in order to achieve low prices and high sales volumes. The goal is to gain competitive advantage through low cost relative to competitors.
This document provides an overview of analyzing a company's external environment from a strategic perspective. It discusses the key components of situational analysis including the macroenvironment and microenvironment. It outlines seven questions to consider when analyzing an industry's competitive environment, including the dominant economic traits, competitive forces, drivers of change, success factors, and attractiveness. Several models are presented for assessing the five competitive forces of rivalry, potential entry, substitutes, supplier power, and buyer power. Factors that influence the strength of each competitive force are also discussed.
This complete deck is oriented to make sure you do not lag in your presentations. Our creatively crafted slides come with apt research and planning. This exclusive deck with thirty slides is here to help you to strategize, plan, analyse, or segment the topic with clear understanding and apprehension. Utilize ready to use presentation slides on Brand Valuation PowerPoint Presentation Slides with all sorts of editable templates, charts and graphs, overviews, analysis templates. It is usable for marking important decisions and covering critical issues. Display and present all possible kinds of underlying nuances, progress factors for an all inclusive presentation for the teams. This presentation deck can be used by all professionals, managers, individuals, internal external teams involved in any company organization. http://bit.ly/2SabkMr
The document discusses competitor analysis and strategies. It provides examples of how Japanese firms carefully studied US and European competitors in the 1960s to understand their strategies and penetrate foreign markets. In contrast, US firms were slow to analyze Japanese competitors. The document also discusses Nirma, an Indian company that grew rapidly by analyzing Hindustan Lever's strategies and launching lower-priced detergent products to target new market segments. It emphasizes the importance of carefully analyzing both direct and indirect competitors to better understand competitive threats and opportunities.
This document discusses evaluating a company's external environment. It covers:
1. The five forces model of competition - analyzing rivalry, threat of new entrants, substitute products, supplier power, and buyer power. Key factors that influence each force are identified.
2. Common drivers of industry change such as growth rates, technology, regulations. Their impact on industry attractiveness must be assessed.
3. Key success factors - the strategic elements, attributes, resources necessary for competitive success in an industry.
4. Strategic groups - clusters of rivals with similar competitive approaches and positions. Strategic group maps can assess competitors' market positions.
MF Strategic Marketing 1 strategy n strategic planning processFuNk IN
This document discusses strategic planning and strategy formulation. It begins by defining strategy as making choices about how to compete and committing to specific actions. It then discusses how a company's strategy determines how it will grow, build loyalty, outcompete rivals, and operate each business function.
The document outlines Porter's five forces model for analyzing an industry's structure and competitive environment. It examines the power of buyers, suppliers, rivals, new entrants, and substitutes. For each force, it provides determinants to assess related to concentration, costs, product differentiation, and more. The goal is to evaluate threats and bargaining power within an industry.
Finally, it discusses the strategic planning process, including analyzing internal strengths/weak
Organizational strategies can be categorized into three levels - corporate, business, and functional. Corporate strategies set the overall direction for an organization across multiple industries. Business strategies determine how a company will compete within a particular industry or market. Functional strategies are developed for individual business functions like marketing or production. The document discusses various frameworks for developing strategies at each level, including growth vs stability strategies, Porter's generic strategies, the BCG matrix, and the product lifecycle model.
MF strategic marketing strategic role of marketingFuNk IN
The document discusses the strategic role of marketing. It outlines that the primary purpose of marketing is to create long-term, mutually beneficial exchange relationships between an entity and its customers. Marketing managers now have expanded responsibilities, including charting organizational direction and contributing to strategic decisions that affect long-term performance. The marketing manager plays a key role in strategic planning by defining the business mission, analyzing situations, and developing strategies, objectives, and plans.
This document discusses the formulation of functional strategies within an organization. It covers the formulation of marketing, financial, production, logistics, research and development, and human resource strategies. For each functional area, key considerations for strategy formulation are provided, such as determining the optimal capital structure, selecting distribution channels, assessing staffing needs, and aligning HR practices with the overall corporate strategy. The document emphasizes that functional strategies must support and help implement the overall business strategy.
This document discusses various aspects of strategy formulation, including functional strategies, the sourcing decision of outsourcing and offshoring, strategies to avoid, making strategic choices, and developing policies. It provides details on different types of functional strategies such as marketing, R&D, operations, and HR strategies. It also explains the process of evaluating strategic options, making choices, and setting policies to implement strategies.
Functional strategy is the approach functional areas take to achieve corporate objectives by maximizing resource productivity. Key elements include core competencies, distinctive competencies, and objectives like profitability, market share, innovation, and social responsibility. Functional strategies include marketing, research and development (R&D), human resource management (HRM), financial, and information management strategies. Marketing strategy focuses on pricing, selling, distributing products using market development and product development. R&D strategy focuses on product innovation and process improvement. HRM strategy focuses on managing culture, people, organization, and training. Financial strategy aligns financial management with business strategy, and information management strategy aligns information management.
This document discusses the three levels of strategic management - corporate, business, and operational.
The corporate level focuses on the overall plan for the organization and strategic business units. Strategy at this level involves conceptual decisions. The business level determines how each business unit will compete and allocates resources. Operational level strategies improve internal functions like manufacturing and marketing.
Effective strategic management requires coordination across all three levels to improve profitability.
The document summarizes different types of functional strategies that support corporate and business unit objectives. It discusses marketing, research and development, human resource management, financial, and information management strategies. The strategies focus on maximizing productivity of resources within each functional area to provide competitive advantages.
This document provides an overview of a workshop aimed at helping salespeople become trusted advisors by building value propositions for customers. The workshop will help attendees understand customers' key business issues and drivers by asking impactful questions. It will teach how to focus on relevant business drivers and communicate the value of solutions. The agenda includes sessions on the evolution of selling, understanding business drivers, building elevator pitches and complex value propositions, and using creativity. The document discusses trends driving changes in business-to-business relationships and emphasizes the need for consultative, enterprise-level relationships over transactional ones.
This document discusses various business level strategies including Michael Porter's competitive strategies of cost leadership, differentiation, and focus. It defines each strategy and provides examples of how organizations can achieve them. Cost leadership involves reducing production costs below competitors through economies of scale, technology, and raw materials. Differentiation strategy makes a product unique through innovation, quality, reliability, and customization. Focus strategy targets a niche market segment through specialized products and marketing. The document also discusses Porter's five forces model of competition and how to analyze competitors and the external environment through SWOT and PESTLE analyses.
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Strategy Development
Week 3
Objectives Week 3Develop strategic objectives.
Create organizational objectives and goals.
Articulate value proposition, key activities, resources, and channels to market.
Quote……
“Successful business strategy is about actively shaping the game you play, not just playing the game you find.”
Adam M. Brandenburger and Barry J. Nalebuff
Quote……
“The essence of strategy lies in creating tomorrow’s competitive advantage faster than competitors mimic the ones you posses today”
Gary Hamel and C.K. Prahalad
Quote……
“Competitive strategy is about being different. It means deliberately choosing to perform activities differently or to perform different activities than rivals to deliver a unique mix of value”.
—Michael E. Porter
Quote……
“Winners in business play rough and don’t apologize for it. The nicest part of playing hardball is watching your competitors squirm”
—George Stalk, Jr., and Rob Lachenauer”
Long-Term ObjectivesStrategic managers recognize that short-run profit maximization is rarely the best approach to achieving sustained corporate growth and profitability.Strategic decision makers confronts:
Should they eat the seeds to improve the near-term profit picture and make large dividend payments through cost-saving measures such as laying off workers during periods of slack demand, selling off inventories, or cutting back on research and development?
Or should they sow the seeds in the effort to reap long-term rewards by reinvesting profits in growth opportunities, committing resources to employee training, or increasing advertising expenditures?
Long-Term ObjectivesTo achieve long-term prosperity, strategic planners commonly establish long-term objectives in seven areas: Profitability Competitive PositionEmployee RelationsTechnological Leadership Productivity – In-OutEmployee DevelopmentPublic Responsibility
Qualities of Long-Term ObjectivesWhat distinguishes a good objective from a bad one? What qualities of an objective improve its chances of being attained?There are five criteria that should be used in preparing long-term objectives:
Flexible
Measurable
Motivating
Suitable
Understandable
The Balanced ScorecardThe balanced scorecard is a set of measures that are directly linked to the company’s strategy
Developed by Robert S. Kaplan and David P. Norton, it directs a company to link its own long-term strategy with tangible goals and actions.
The scorecard allows managers to evaluate the company from four perspectives:
financial performance
customer knowledge
internal business processes
learning and growth
The Balance Scorecard
The Balance Scorecard
The Balance ScorecardPerspectiveObjectiveKPIGoal for 2014FinanceBecome industry Cost Leader% Reduction in Cost per Unit20%Utilization of AssetsUtilization Rate7%Increase Market ShareMarket Share30%CustomerCustomer Retention% Retention 75%On Time Delivery% of On Time Delivery90%Zero Defects% of Good Quality.
Strategic management and competitive dynamics Hamzah Rehail
This document provides an overview of strategic management and competitive dynamics. It discusses the strategic management process, which includes strategy formulation, implementation, and evaluation. Key aspects of strategy formulation are analyzing external opportunities/threats and internal strengths/weaknesses, developing long-term objectives and strategies. Porter's Five Forces model is also summarized. The document then discusses competitive dynamics, including analyzing competitors, drivers of competitive actions, strategic vs. tactical moves, first and second movers, and how organizational size, reputation, and market cycles impact competitive behaviors.
This document discusses Porter's five forces industry analysis model. It provides information on each of the five forces: bargaining power of suppliers, bargaining power of buyers, threat of new entrants, threat of substitutes, and competitive rivalry within an industry. For each force, it outlines factors that influence whether the force is weak or strong and its impact on an industry. It also provides examples and perspectives on how each force could impact a small Indiana winery.
Strategic management lecture 2 discusses environmental analysis and the five forces model for analyzing an industry's competitive environment. The five forces include: (1) threat of new entry, (2) buyer power, (3) supplier power, (4) threat of substitutes, and (5) competitive rivalry. Firms can use this model to understand industry forces, identify strengths/weaknesses, and influence competitive strategy.
This document discusses analyzing a company's external environment and competitors. It describes performing a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. It also explains Porter's Five Forces model to evaluate competitive pressures from new entrants, suppliers, buyers, substitutes, and rivalry. Competitor analysis involves understanding a competitor's assumptions, strategies, objectives, capabilities, and likely responses to changes in the competitive environment. The purpose is to develop strategies that leverage a company's advantages relative to competitors.
Crayon 7 Battlecard templates
Designed & Customizable for Any Business
Competitor battlecards are one of the more popular sales enablement materials businesses create today. Competitor battlecards provide an overview of a specific competitor’s company, products, and services and provide guidelines on how to win a deal against that competitor. The most effective battlecards are easy to consume, up-to-date with the latest competitive intelligence, and tailored to the sales process.
These templates have been crafted based on best practices gleaned from researching a variety of companies’ real life battlecards. They draw from the design, content structure, and formats that were most common among the battlecards reviewed. The goal with these templates is to make the process of creating effective battlecards easier, sharing the lessons from peers in the industry and providing a head start on creating the materials themselves, so that you can get straight down to helping your sales team win more competitive deals. Simply customize with your branding, competitors, and content, and share with your team!
You may also be interested in these related articles:
12 Types of Sales Enablement Materials to Win More Deals
6 Steps to Design a Successful Competitive Intelligence Process
Competitive Matrix Examples: 5 Ways to Compare Competitors
How to Eliminate Competitive Battlecard Bias to Help Sales Win More Deals
Produced by nearly two-thirds of competitive intelligence (CI) teams, battlecards are growing more popular by the day—and for good reason: A whopping 47% of sales opportunities are competitive.
What is a battlecard?
A battlecard is a resource designed to help your sales team when they go head-to-head against a particular competitor. As an example, if you were hired by Slack to create battlecards for their sales team, you’d create one for Microsoft Teams, one for Mattermost, one for Rocket.Chat, and so on.
How do you use battlecards?
Different sellers will use the same battlecard for different reasons. To a new hire, a battlecard is an educational tool—something they need to study in order to reinforce their training and get up to speed quickly. To a veteran, a battlecard is more of a content hub—a one-stop shop for the latest datasheets, slide decks, etc.
Because different sellers have different needs, some CI teams create multiple sales battlecards for each competitor. Returning to our Slack example, you may decide to create a Microsoft Teams battlecard for your BDRs (little detail, designed to make them better at cold calling) and another for your AEs (more detail, designed to make them better at running demos).
As we’ll discuss later in this post, you need to talk to your sales team before you create battlecards. Don’t assume that you know what they need. Everyone uses battlecards differently.
Competitive comparisons vs. battlecards
Competitive comparisons and battlecards are not the same thing—but they’re closely related.
The document discusses battlecard templates that can be used to create competitor profiles for sales teams, providing an overview of a competitor's company, products, strengths, weaknesses, and how to position one's own solution more effectively. It includes examples of different battlecard sections and formats that have been effective for other companies. The templates are meant to make the process of creating battlecards easier and provide best practices for competitive intelligence to help sales teams win more deals.
The document discusses analyzing a firm's external environment including the general environment, industry environment, and competitor environment. It describes the components of the general environment and how they can affect firm strategy. It also explains Michael Porter's five forces model for analyzing industry competition including the threat of new entrants, bargaining power of suppliers and buyers, threat of substitutes, and rivalry among existing competitors. Finally, it provides guidance on conducting a competitor analysis by examining a competitor's objectives, strategies, assumptions, and capabilities.
This document discusses the importance of competitive intelligence (CI) for businesses. It provides an overview of CI processes and techniques including analyzing competitors, customers, technologies and the external environment. CI helps minimize threats and maximize opportunities. It is an important input for strategic decision making. The document emphasizes that CI requires collecting information from various sources, analyzing it to extract insights, and using those insights to make better strategic, operational and tactical decisions.
Organization development or restructuring external factorsDragan Cirkovic
External factors like customers, competition, and the broader business environment can impact an organization's strategy and performance. There are several frameworks that can be used to analyze these external factors, including PEST analysis, Porter's Five Forces, and the Four Corners tool. It is important to consider both external factors and an organization's internal capabilities when developing strategies to respond to changes in the competitive landscape. A comprehensive strategic analysis should involve tools to evaluate the external environment as well as the organization's resources and competitors.
The Competitive Intelligence Continuum - Taking Wisconsin to the WorldArik Johnson
The document discusses competitive intelligence and provides an overview of key concepts and processes. It defines competitive intelligence as a disciplined process of information collection and analysis to support better decision-making. It discusses trends like organizational acculturation and disruptive innovation. The document also outlines traditional competitive intelligence processes like identifying key intelligence topics, primary and secondary research, analysis techniques like SWOT and benchmarking, and how competitive intelligence supports strategic planning.
This document discusses methods for evaluating a company's resources and competitive capabilities, including its strengths, weaknesses, opportunities, and threats (SWOT analysis). It describes assessing a company's strategy, costs, value chain activities, and competitive position relative to rivals. Key questions addressed include how well the current strategy is working, identifying the company's strengths and weaknesses, determining if costs are competitive, and ranking the company's position versus competitors. Conducting in-depth analyses across these areas can help identify strategic issues and guide strategic decision making.
This document summarizes internal analysis techniques for assessing a business's strategic options. It discusses analyzing financial performance, beyond just profits, to evaluate past strategies and identify strengths and weaknesses. A self-analysis involves assessing sales, costs, structure, management style and more. Key measures include customer satisfaction, product quality, brand associations, costs, new products, and manager capabilities. Models like the BCG matrix and GE Business Screen evaluate strategic business units based on industry growth and market share. The analysis aims to determine where to invest, selectively invest, or harvest/divest.
Porter's Five Forces model analyzes five competitive forces that shape an industry: 1) rivalry among existing competitors, 2) threat of new entrants, 3) bargaining power of suppliers, 4) bargaining power of buyers, and 5) threat of substitute products. The model helps businesses understand the profitability and attractiveness of an industry sector by identifying its weaknesses and strengths. Analyzing these competitive forces can help companies improve their profitability by adjusting their strategy accordingly.
UMASS Lowell Sales and Customer Relations Management We.docxmarilucorr
UMASS Lowell Sales and Customer Relations Management
Week 4
Page 1 of 11
Sales and Customer Relations Management – Week 4
Evaluating Your Position in a Sale:
Red Flags – Leveraging Strengths – Buyer Response Modes
Selling can be a bit like investing in the stock market. If you are lacking a
strategy, then your expectations for making a gain can swing like a
pendulum from wild optimism to deep pessimism. Your emotions will cloud
your judgement and keep you from forming an objective assessment of
potential outcomes. Even worse, you’ll be unlikely to see the true gaps in
your competitive position or, conversely the opportunities to leverage
unique advantages.
The remedy for this ailment is to have a strategy that’s well informed by
facts. Effective information gathering is the key to making an informed
assessment of your true position for a sales opportunity. Any gaps in your
view of the customer’s decision dynamics – such as not knowing all the
decision makers, not understanding buying motivations, not knowing which
of your product’s features and benefits will most impact the customer - will
reduce your chances of making the sale.
The Strategic Selling framework provides an organized method for
identifying dangerous gaps in knowledge (Red Flags) as well as valuable
differentiators (Strengths to Leverage) in order to improve your competitive
position.
Red Flags
The symbolism of a Red Flag highlights critical information that’s missing or
unclear about your Single Sales Objective. Red Flags are not “negatives”.
Image of a
Red Flag
UMASS Lowell Sales and Customer Relations Management
Week 4
Page 2 of 11
In fact the symbolism of a red flag is akin to the situation of a driver on a
winding mountain road. As he comes around a corner, he sees a road
worker holding a red caution flag. The driver is grateful for the advance
warning about an impending road hazard. He drives ahead with heightened
vigilance. As a sales rep, your clear eyed assessment of knowledge gaps
or other shortcomings is the first step in acting to remove any obstacles to
making the sale. Examples of Red Flags are:
New, or as yet un-contacted Buying Influences – if you haven’t
identified or met all key buying influences yet then the probability of
making a sale remains uncertain.
Reorganization, transformation, corporate action – any organizational
or structural changes in the midst of a customer’s purchase
assessment will require you to redefine the buying group and roles.
Uncertainty about other key informational aspects
Emerging competitor – has a new rival come on the scene?
Technology shifts, compatibility issues – has a change in IT
standards caused your product to be considered non-compliant
Mandates for standardization – has a corporate standard been
established that all business units must recognize?
Any of these developments should prom ...
The document summarizes Michael Porter's framework for competitive strategy. It outlines the five competitive forces that determine the intensity of industry competition: threat of new entry, power of suppliers, power of buyers, threat of substitutes, and rivalry among existing competitors. It then discusses how firms can gain a competitive advantage by positioning themselves in the industry where these forces are weakest or by influencing the competitive balance through strategic changes. The document also covers Porter's generic strategies of cost leadership, differentiation, and focus.
Similar to MF Strategic Marketing strategy n strategic planning process (20)
Chapter wise All Notes of First year Basic Civil Engineering.pptxDenish Jangid
Chapter wise All Notes of First year Basic Civil Engineering
Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
4. BCP, Surveying volume 1
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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Find out more about ISO training and certification services
Training: ISO/IEC 27001 Information Security Management System - EN | PECB
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General Data Protection Regulation (GDPR) - Training Courses - EN | PECB
Webinars: https://pecb.com/webinars
Article: https://pecb.com/article
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For more information about PECB:
Website: https://pecb.com/
LinkedIn: https://www.linkedin.com/company/pecb/
Facebook: https://www.facebook.com/PECBInternational/
Slideshare: http://www.slideshare.net/PECBCERTIFICATION
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxEduSkills OECD
Iván Bornacelly, Policy Analyst at the OECD Centre for Skills, OECD, presents at the webinar 'Tackling job market gaps with a skills-first approach' on 12 June 2024
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
Leveraging Generative AI to Drive Nonprofit InnovationTechSoup
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
2. Strategy
Strategy means making clear-cut choices about how
to compete. – Jack Welch
A strategy is a commitment to undertake one set of
actions rather than another – Sharon Oster
3. Strategy
A company’s strategy is all about HOW…
How to grow the business, how it will build a loyal
clientele and outcompete rivals, how each functional
piece of the business will be operated, how
performance will be boosted.
4. Strategy – „hows of the strategy‟
Sustainable competitive advantage
A company achieves SCA when an attractive
number of buyers prefer its products or services
over offerings of competitors and when the basis
for this preference is durable.
5. Strategy – „hows of the strategy‟
Low cost leadership
e.g. Wal-Mart, Southwest Airlines
Differentiation
e.g. Harley-Davidson, Rolex, Amazon
Focusing on a narrow market niche
e.g. Starbucks, e-bay
Developing expertise and resource strengths
FedEx – next day delivery, Walt Disney – theme park
management and family entertainment
6. What is Strategic Planning
Managing Investment Portfolio of businesses
Analysis of each business and establishing fit
A game plan or Business Model
AIMED AT
Good business performance
7. Marketing Productivity chain
Company View Point Level Who cares?
We do stuff Marketing actions Customers
Customers do stuff Customers Reaction Advertising and
Promotion specialis
Stuff Happens Product Market
Impact
Product Managers
and CMO
Accounting happens Financial outcomes CMO and CFO*
Wealth is affected Firms Value CFO and the CEO*
*Chief Marketing, financial and executive officer
Adapted from : Bolton, R.N. (2004), “Making Marketing Matter”
JM Vol 68, pp 73-75
8. 1. What is Strategy?
Strategy Performance
Competitive
Advantage
Shareholder
Value
Firm
• Strategy: goal and set of policies designed to
achieve competitive advantage in a particular
marketplace
• Competitive Advantage: ability to transform inputs
into goods and services at a maximum profit on a
sustained basis, better than competitors
9. Strategic Planning Process
Environmental
Conditions &
Trends
Opportunities
and
Threats
External Analysis
Inventory of
Distinctive
Competencies
Strengths
and
Weaknesses
Internal Analysis
Identify
& Evaluate
Options
Choose
Strategy
Strategy Formulation
Strategy
Implementation
10. Basic Concept
Strategy
Formulation
Set of processes involved in
creating or determining the
strategies of org. Focus is on
contents of strategy.
Strategy
Implementation
Methods by which strategies are
operationalized or executed with in
org. Focus is on processes which
achieve strategies.
13. Marketing Environment
Macroenvironment
PEST ANALYSIS
Political
Legislation regulating business
Growth of public interest groups
Increased emphasis on ethics and
socially responsible actions
Economical
Income distribution and changes in
purchasing power
Changing consumer spending patterns
14. Marketing Environment
Macroenvironment
PEST ANALYSIS
Social
Changing age structure of a population
Changing family structure
Rising number of educated people
Increasing diversity
Technological
Fast pace of technological change
High R&D budgets
Concentration on minor improvements
Increased regulation
15. External Environment
Porter‟s five forces model
To evaluate the attractiveness of your
industry Power of
Buyers
Power of
Substitutes
Power of new
entrants
Power of
Sellers
Power of
Rivals
16. External Environment
Porter‟s five forces model
To evaluate the attractiveness of your
industry
STEPS
Outline your key buyers, suppliers, rivals,
new entrants and substitutes.
Determine the strength of the threat that
each group poses to your company‟s
potential profitability.
17. Porter‟s five forces model
Power of Buyers
Buyers are the customers who demand and purchase
your products and services.
STEPS
Make a list of your buyers. Name the
major players and describe them by type
(e.g. P&G – consumer goods
manufacturer)
Assess the strength of buyer power by
rating the features given in table 1.
18. Porter‟s five forces model
Power of Buyers
Determinants Defining Question Assess the power of buyers
Circle one of the following:
1=low, 5=high or NA if it doesn’t
apply to your industry
Concentration Are the buyers fragmented or highly concentrated
(i.e. do a few monopolize the market)? If they are
few and concentrated, then buyer bargaining
power is typically high
1 2 3 4 5 NA
Product cost vs.
total purchases
Does your product buyer‟s purchase represent a
significant fraction of the buyer‟s costs? If so, buyer
bargaining power is typically high.
1 2 3 4 5 NA
Product
Differentiation
Is the buyer‟s product or service a commodity? Is
branding critical for success? Is there an actual vs.
a perceived difference? If the products are
standard or undifferentiated, buyers typically have
high bargaining power.
1 2 3 4 5 NA
Switching Costs Are switching costs high or low? If buyers face few
switching costs, their bargaining power is typically
high.
1 2 3 4 5 NA
Profits Do buyers earn low profits? If so, they are typically
more likely to bargain hard.
1 2 3 4 5 NA
19. Porter‟s five forces model
Power of Buyers
Determinants Defining Question Assess the power of buyers
Circle one of the following:
1=low, 5=high or NA if it doesn’t
apply to your industry
Backward
integration
Can they make what you make themselves? Is
there a threat of backward integration? If so, the
threat is typically high.
1 2 3 4 5
NA
Impact on
Quality/
Performance
Is the product you offer important to the quality of
the buyer‟s products or services? If not, buyer
power is typically high.
1 2 3 4 5
NA
Buyer
Information
Does the buyer have complete information on the
product he may purchase? If so, buyer power is
typically high.
1 2 3 4 5
NA
(Harvard Business School, 2005)
20. Porter‟s five forces model
Power of Suppliers
Suppliers provide labor, materials, financial capital, or
equipment to your firm.
STEPS
Make a list of your suppliers. Name the
major players and describe them by
type.
Assess the strength of supplier power by
rating the features given in table 2.
21. Porter‟s five forces model
Power of Suppliers
Determinants Defining Question Assess the power of buyers
Circle one of the following:
1=low, 5=high or NA if it doesn’t
apply to your industry
Concentration Are your suppliers fragmented or highly
concentrated (i.e. do a few monopolize the
market)? If an industry is dominated by a few
companies, the suppliers are typically high
powerful.
1 2 3 4 5 NA
Presence of
substitute inputs
Are there any substitutes for your suppliers‟
products? If not, suppliers are typically powerful.
1 2 3 4 5 NA
Importance
relative to
customer
Is your industry an important customer of the
supplier group? If not, suppliers are typically
powerful.
1 2 3 4 5 NA
Impact on
Quality/
performance
Is your supplier‟s product essential to the quality or
performance of your business? If so, suppliers are
typically powerful.
1 2 3 4 5 NA
Product
Differentiation
Is the supplier‟s product or service a commodity? Is
branding critical for success? Is there an actual vs.
a perceived difference? Suppliers with
differentiated products typically have more
bargaining power than suppliers selling
commodities.
1 2 3 4 5 NA
22. Porter‟s five forces model
Power of Suppliers
Determinants Defining Question Assess the power of buyers
Circle one of the following:
1=low, 5=high or NA if it doesn’t
apply to your industry
Switching costs How costly is it for you to switch from the
supplier‟s product? If switching costs are high,
suppliers are typically more powerful.
1 2 3 4 5
NA
Forward
Integration
Can the supplier produce the product you make?
Is there a threat of forward integration? If so,
suppliers are typically powerful.
1 2 3 4 5
NA
(Harvard Business School, 2005)
23. Porter‟s five forces model
Power of Rivals
Rivals are firms that make similar products to yours and
are in direct competition with you.
STEPS
Make a list of your rivals. Name the
major players and describe them by
type.
Assess the threat of rivalry by rating the
features given in table 3.
24. Porter‟s five forces model
Power of Rivals
Determinants Defining Question Assess the power of buyers
Circle one of the following:
1=low, 5=high or NA if it doesn’t
apply to your industry
Industry Growth How slowly or quickly is the industry growing? If it
is a slow growth industry, there is likely to be a
more intense fight among rivals for market share.
1 2 3 4 5 NA
Fixed costs Does your business have high fixed costs? If so,
rivals will typically be tempted to cut prices to
ensure sales, thus posing a significant threat.
1 2 3 4 5 NA
Intermittent
Overcapacity
How frequently is there a problem of excess
capacity in your industry? Are there periods when
there is excess capacity? Overcapacity often leads
to price cutting. If so, there is typically a threat.
1 2 3 4 5 NA
Product
differentiation
Is your product a service or commodity? Typically,
the closer a product is to being a commodity, the
fiercer the intensity of rivalry.
1 2 3 4 5 NA
Brand Identity Is branding critical for your rival‟s success? Is there
an actual vs. a perceived difference? Brand
identification by buyers reduces the threat of rivals.
1 2 3 4 5 NA
25. Porter‟s five forces model
Power of Rivals
Determinants Defining Question Assess the power of buyers
Circle one of the following:
1=low, 5=high or NA if it doesn’t
apply to your industry
Switching costs How costly is it for your buyers to switch between
providers? Low switching costs typically increase
rivalry. When a customer can freely switch from
one product to another, companies must struggle to
capture and retain customers.
1 2 3 4 5 NA
Concentration
and balance
Are there a large number of firms of equal size and
power, all chasing after the same customers? If so,
rivalry is typically intense.
1 2 3 4 5 NA
Diversity of
competitors
Are there competitors with different strategies and
frames of reference? When competitors are
diverse, it‟s more difficult to establish the rules of
the game, so the threat from competitors is
greater.
1 2 3 4 5 NA
Corporate Stakes How high are the rivals‟ corporate stakes? What do
rivals stand to lose (e.g. profits, decision making
power)? Strategic stakes are high when several
firms in an industry take great risks to expand,
diversify, and gain market position. The intensity
and volatility of the rivalry increases when firms
select alternative strategies that may sacrifice
short-term profitability
1 2 3 4 5 NA
26. Porter‟s five forces model
Power of Rivals
Determinants Defining Question Assess the power of buyers
Circle one of the following:
1=low, 5=high or NA if it doesn’t
apply to your industry
Exit Barriers Are exit barriers low or high? High exit barriers
make it costly to abandon a product; for example,
when an organization has specialized assets that
cannot be easily sold off.
1 2 3 4 5 NA
(Harvard Business School, 2005)
27. Porter‟s five forces model
Power of New Entrants
New entrants in an industry are today‟s new players
who may become tomorrow‟s rivals. The threat of new
entrants is directly related to whether the barrier to
entry into an industry is high or low.
STEPS
Assess the threat of new entrants by
rating the features in Table 4 and
following the given criteria:
If a barrier to entry is high, the threat from new
entrants is weak; if a barrier is low, the threat of new
entrants is strong.
28. Porter‟s five forces model
Power of New Entrants
Determinants Defining Question Assess the power of
buyers
Circle one of the
following:
1=low, 5=high or NA if it
doesn’t apply to your industry
Economies of Scale and
Experience
Does successful entry require that
companies have significant economies of
scale or experience? Barriers to entry are
typically high when an aspiring company
must cut costs in order to compete in a
large-scale and/ or experienced market.
1 2 3 4 5
NA
Product Differences Do new entrants need to differentiate by
spending heavily on advertising , customer
service, or product differences to overcome
existing customer loyalty? Product
differentiation is typically a barrier to entry.
1 2 3 4 5
NA
Brand Identity Do new companies need to spend heavily
on brand identification to gain customer
loyalty? Brand identification is typically a
barrier to entry.
1 2 3 4 5
NA
Switching costs Does the buyer have to pay to switch from
one supplier‟s product to another? High
switching costs are typically a barrier to
entry.
1 2 3 4 5
NA
29. Porter‟s five forces model
Power of New Entrants
Determinants Defining Question Assess the power of buyers
Circle one of the following:
1=low, 5=high or NA if it doesn’t
apply to your industry
Capital
Requirements
Does the new company need to invest large
financial resources (relative to market size) in order
to compete? Huge capital requirements are
typically a barrier to entry.
1 2 3 4 5 NA
Access to
distribution
Do newcomers have access to distribution channels
for products or services? Difficult access can
typically be a high barrier to entry.
1 2 3 4 5 NA
Cost Advantages Established companies have cost advantages over
new rivals because they may have already obtained
proprietary product technology, access to raw
materials, favorable locations and government
subsidies. In addition, established companies may
have passed a learning or experience curve. Such
cost advantages are typically a barrier to entry for
new entrants.
1 2 3 4 5 NA
Government
Policy
Govt policies such as antitrust regulations, can help
to preserve or limit competition. Such policies can
typically create a barrier to entry
1 2 3 4 5 NA
30. Porter‟s five forces model
Power of New Entrants
Determinants Defining Question Assess the power of buyers
Circle one of the following:
1=low, 5=high or NA if it doesn’t
apply to your industry
Expected
Retaliation
New entrants may decide not to enter a new
market if existing firms may have a history of
retaliating, resources to fight back, a strong
commitment to the industry, and illiquid assets
employed in the industry. Also, if the industry is
growing slowly, they may retaliate against new
players who would threaten sales growth.
1 2 3 4 5 NA
31. Porter‟s five forces model
Power of Substitutes
A substitute is a different product or service from the
one you make that competes for the same customers.
Determinants Defining Question Assess the power of buyers
Circle one of the following:
1=low, 5=high or NA if it doesn’t
apply to your industry
Price Performance Does the substitute offer a better price or
performance? A substitute product or service is a
threat to competition when it offers a higher
performance at a given price or the same
performance at a lower price
1 2 3 4 5 NA
Switching costs Is it costly for buyers to switch to the substitute
product or service? When buyers must pay more to
switch to a substitute, the threat of substitutes is
low.
1 2 3 4 5 NA
Editor's Notes
The reason that there are a variety of answers to the question: What is marketing? could be that marketing is a philosophy as well as a tactical functional activity .