Competitive advantages and strategies

1. Competitive
Advantages and
Strategies
leadership

2. 1 2
PRODUCT
COMPETITIVE
ADVANTAGES
IMPORTANT FOR
THE CLIENTS
PRODUCT
COMPETITIVE
ADVANTAGES
A LOT OF SEVERAL TWO‐THREE
3PCA IMPORTANT
FOR THE CLIENTS
AND ABSENT BY
COMPETITORS
The Cone of Competitive
Advantages

3. The World's Largest Companies
2016

4. 1.FOCUS
(SPECIALIZATION)
2. PROMINENT SUCCESS
3. DISASTER 4. COSTS LEADERSHIP
- relative costs high
- a degree of marketing
differentiation high
relative costs low
- a degree of marketing
differentiation high
Matrix of Competitive Advantages
relative costs low
- a degree of marketing
differentiation low
relative costs high
- a degree of marketing
differentiation low

5. base
- In differentiation
- In costs
- In specialization
(Focus)
Competitive Advantages
Forms
additional
in marketing
in immediate reaction on the
necessities of the market
in innovations
in more effective management
in aggregate with kinds of
activity (in diversification)

6. Differentiation
Advantage01
Optimal market
conditions
a variety of ways of
marking out goods on
the market
distinctive features of
products are perceived
and valued by
consumers
the demand for
products is quite diverse
competition is primarily
non‐price
Beauty for All
Offering all women and men worldwide
the best of cosmetics innovation in terms
of quality, efficacy and safety to satisfy all
their desires and all their beauty needs in
their infinite diversity.

7. Broadening
Customer Base
Changing
Business
Operations
and Functions
L'oreal Strategies
Increasing Expense
in Research &
Development and
Promotion &
Advertising
‐ to concentrate on
accessible innovation
‐ expanding geographically
‐ closure of inefficient production facilities
‐ centralization of purchasing processes, ‐
better utilization of
equipment
‐major advances in productivity
the innovation efficacy,
quality and safety of the
products
Universalisation ‐
globalisation

8. RESEARCH AND
DEVELOPMENT
MARKETING
CAMPAIGN BY USING
HIGH PROFILE
CELEBRITIES
INVESTS 3% OF THEIR
SALES IN RESEARCH AND
DEVELOPMENT
A DIVERSE RANGE OF
PRODUCTS
THAT CATERS TO
VARIOUS ETHNIC
GROUPS
l'oreal Core Competencies
MAKE UP, PERFUME, HAIR
AND SKIN PRODUCTS
‐ CONSUMER PRODUCTS
‐ ACTIVE COSMETICS
‐ LUXURY PRODUCTS
PROFESSIONAL PRODUCTS

9. Costs
Leadership
02
Optimal market
conditions
Liberal share of market and
wide access to cheap
resources
Price sensitive and similar
enough demand,
standardization and
absence of effective
differentiation
Exclusive price competition
area, in case of price
increase consumers loose a
great part of theirs earnings
Economy of scale
Experience and training
Use of facilities
Relations with functional
departments / between
SBU
Integration level
Timing in entering the
market
Rational choice of goods
Place
Sources

10. one of the first airlines to skip the
travel agent and to start advertising
on their planes
broke the tradition with the airline
loyalty programs, but their offering
was clear: point to point for a price of
an affordable pair of jeans
fleet is standardized
headquarters is in London, no thrills
just a simple office on one of their
most important Hubs
spend more time in the air
transporting than at the gate in the
airport
partnerships is a skill they manage
very well – EasyJet offers Starbucks
Coffee, Rental Cars, Collection for
Charity and Hotel rooms as extra
services
easy jet ‐ costs
Passengers - 73 137 826
Load factor - 91,6%
Total revenue of £4,669 million
Revenue per seat of £58.46

11. Focus
03Optimal market
conditions
The difference in
needs and target
usage of goods
between customers
Absence of
competitors’
specialization on
specific market
segment
Limitation of firm’s
reserves for
servicing the
market

12. Innovations
as an Advantage
Market conditions
the absence of
product analogue
potential or hidden
demand for product
readiness of large-
scale enterprises or
science-technical
leaders to make a
support (venture
funds, business-
angels)

13. Innovations
as an Advantage
Silicon Valley
conditions
A special innovation culture
that promotes creative
environment
Equality - a top manager is
always ready to listen to
subordinates, and responsible
for the project is distributed
among all employees of
startups
The average salary is the highest
in the IT sector (about $ 108
thousand per year)

14. Reputation as the Result

15. Brand Value as the Result

16. Direct competitors
Product competitors
Indirect competitors
Implicit competitors
types and strategies
Сompetitors

17. Market Position
Market leader – has a crucial influence on
work and others’ behaviour
Market challenger - Strong market
position, has a wide range of strategies,
almost independent from competitors
Market follower – can achieve high profits
because did not bear of innovation expense
Market nicher (guerrilla), has a particular
competitive advantage in the niche
Outsider - Weak market position
with insufficient productivity

18. CONSTANT
ADVANCEMENT
DEFENSE AND
REINFORCEMENT
‐ TO RAISE THE COMPETITIVE
BARRIER BY MEANS OF
INCREASING COSTS ON
ADVERTISING, A HIGHER
LEVEL OF SERVICING
PERSONIFICATION OF
SERVICING
‐ TO CLOSE FREE NICHES
‐ TO PRESERVE REASONABLE
PRICES AND ATTRACTIVENESS
OF GOODS
‐ TO CONCLUDE EXCLUSIVE
CONTRACTS WITH THE BEST
SUPPLIERSAND DEALERS
‐ TO PATENT ALTERNATIVE
TECHNOLOGIES
‐ ENTERING THE MARKET
WITH NEW PRODUCTS
‐ QUALITY IMPROVEMENT
‐ CUSTOMER SERVICE
IMPROVEMENT
‐ SEARCHING FOR COSTS
DECREASE
STRATEGIES
RELATED TO
MARKET
FOLLOWERS
‐ FAST PRICE REDUCING
‐ WIDE‐SCOPE CAMPAIGNS
OF PRODUCT PROMOTION
‐ BETTER CONDITIONS FOR
THE MAIN CONSUMERS
‐ HEADHUNTING OF
SPECIALISTS FROM WEAKER
COMPETITORS
‐ EFFECTIVE
BENCHMARKING
Market Leaders’ Strategies

19. nescafe as the
leader
instant coffee brands

20. Constant advancement
- Entry with new products
- Improving the quality
nescafe strategies
Defense and reinforcement
- To close free niches
- To preserve reasonable
prices and attractiveness of
goods
- To raise the competitive
barrier increasing costs on
advertising
Toward the market followers
- Effective benchmarking
- Wide-scope campaigns of
product promotion

21. 1. Face‐to‐face (frontal) competition
2. Flank attack
3. Surrounding
The Strategies of
Market Challenger

22. . Face‐to‐face (frontal) competition
2. Flank attack
3. Surrounding
social networks challenge
Odnoklassniki vs Vkontakte

23. Odnoklassniki vs Vkontakte

24. Social Network "Odnoklassniki" has introduced a
new tool to help in promoting the group notes on
the social network ‐ Promopost
"Odnoklassniki" launched an online television and
became the first social network in Russia, launched
online broadcasting technology. The first TV
channel to broadcast live on the social networking
site, has become LifeNews
Following the "VKontakte" OK introduced
moderated posts. Now administrators group
(including brand pages) will be easier to manage
them and to avoid obscene messages from group
members
Social Network Statistics updated format, which
now allows us to solve basic analytical tasks when
working with a group ‐ to understand whether
covered by the TA, which of the types of content
worked better and what is the reaction.
Odnoklassniki vs Vkontakte

25. The Strategies of
Market Follower
Counterfeiter – duplicates the product
Cloner – emulates the brand
Imitator – copies some things
Adapter – improves and
adapt the product

26. 1. TO FIND A MARKET
SECTOR, THE SIZES OF
WHICH ARE GOOD
ENOUGH TO BE
PROTECTED
2. NOT TO TRY TO
BECOME A LEADER BY
ALL MEANS EVEN WHEN
THE BUSINESS GOES
WELL
3. TO BE READY TO
YIELD (TO GIVE) IN TIME
Guerrilla Strategies

27. WE, BIONORICA SE, ARE ONE OF
THE LEADING MANUFACTURERS
OF HERBAL MEDICINES
WORLDWIDE. WE COMBINE THE
ACTIONS OF BOTANICAL
COMPOUNDS WITH MODERN
PHARMACEUTICAL RESEARCH TO
PRODUCE EFFECTIVE AND WELL‐
TOLERATED MEDICINES OF THE
HIGHEST QUALITY.
guerrilla strategies
in pharmaceutical market

28. The strategies of
weak business
‘Harvesting’ on a particular market
Leaving a particular market for another one
Working with the cheap produce or using new methods of
differentiation
Preservation and retention of sales volumes, market
share, efficiency and competitive market position on
current levels
Minimal reinvestment

29. The strategies for
outsiders
Production re-organization
Integration with another enterprise
Assortment reduction
A considerable decrease on marketing expenditure
Resignation from business