Competitive advantage is gained when an organization can provide greater value to consumers at a lower price than competitors. There are direct competitors that offer similar products and indirect competitors that offer alternative but substitutable products that satisfy the same consumer needs. To identify competitive advantage, companies assess competitors' objectives, strategies, marketing, financials, products, facilities, personnel, and corporate strategies. Common competitive strategies include cost leadership, differentiation, focus, and customer intimacy. Patanjali Ayurved has achieved competitive advantage through a loyal consumer base attracted by Ramdev's promotion of Indian ayurvedic products and criticism of foreign brands, competitive prices, and minimal advertising costs.

2. MEANING
An advantage over competitors gained by offering consumers
greater value than competitors offer .
[A superiority gained by an organization when it can provide
the same value as its competitors but at a lower price, or can
charge higher prices by providing greater value through
differentiation. ]
STEPS IN IDENTIFYING COMPETITIVE
ADVANTAGE

3. Direct Competition
Multiple businesses offering similar
products and services create direct
competition
EXAMPLE- Dominos & Pizza Hut are
direct competitors as they both are
selling pizzas
Indirect competitors
Businesses that offer slightly
different products and services, but
target the same group of customers
with the goal of satisfying the same
need. These are sometimes also
known as substitutes.
EXAMPLE – Mc Donald is indirect
competitior for Dominos
IDENTIFYING
CUSTOMRES

4. Assessing Competitors
 1.Determinig competitors objective.
(Profitability , technological leadership , market share growth , cash flow
, customer service.
 2.Identying competitors strategies.
“ 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.”
Cost Leadership
The cost leadership strategy is typically only employed by large companies
that can obtain products cheaply through economies of scale.
Differentiation
Companies that use the differentiation strategy offer unique products or
services. Having a unique offering gives companies an advantage over
their competitors because their competitors simply can't offer what
they're offering. To develop unique products and services, companies
often invest heavily in research and development
Low-Cost Focus
The low-cost focus strategy is similar to the cost leadership strategy
except that it focuses on a niche market. Instead of marketing a product
to the entire population it is marketed to a particular segment of the
population. The aim of the strategy is to then be the cheapest provider
in that segment.
High marketing & advertizement

5. Some Other Comparing Background.
Background
◦ ownership, corporate governance, and organizational structure
 Financials
◦ dividend policy, and profitability
◦ various financial ratios, liquidity, and cash flow
◦ profit growth profile; method of growth (organic or acquisitive)
 Products
◦ products offered, depth and breadth of product line, and product
portfolio balance
◦ R&D strengths
◦ brands, strength of brand portfolio, brand loyalty and brand
awareness
◦ patents and licenses
◦ quality control conformance.
• Facilities
• plant efficiency,
• capital investment

6. Marketing
•segments served,
•market shares,
•customer base,
•growth rate,
•and customer loyalty
•promotional mix,
•promotional budgets,
• ad agency used,
•distribution channels used (direct & indirect)
•pricing, discounts, and allowances
•Personnel
• number of employees, key employees, and skill sets
•strength of management, and management style
•compensation, benefits, and employee morale & retention rates
•Corporate and marketing strategies
• objectives, mission statement, growth plans, acquisitions, and
divestitures
•marketing strategies

7. Selecting Competitiors
1.Strong or Weak Competitors
The company can focus on one of several classes of competitors.
Most companies prefer to compete against weak competitors. This
requires fewer resources and less time. But in the process, the firm
may gain little.
You could argue that the firm also should compete with strong
competitors in order to sharpen its abilities. Moreover, even strong
competitors have some weaknesses, and succeeding against them
often provides greater returns.
2.Close & Distant Competitors (Direct & Indirect Competitors)
3."Good" or "Bad" Competitors
An industry often contains "good" competitors and "bad"
competitors.7 Good competitors play by the rules of the industry. Bad
competitors, in contrast, break the rules. They try to buy share rather
than earn it, take large risks, and in general shake up the industry.

8. Selecting Competitive
Strategies
Overall cost leadership
Differentiation
Customer intimacy(unique range of customer
services
Focus
Marketing and advertising.
Best in technology and other advancements.

10. Patanjali Ayurved Limited

14. Strengths & weakness
Loyal consumer base and competitive price - Baba Ramdev’s fanatic
consumer base of about ~70 million has proved to be a great head start for
him. This large fan base comes from an Ayurveda-freak nation and years of
conducting yoga sessions. Further, Patanjali’s products are priced lower than
their key competitors for price sensitive Indian consumers, who now see more
“value” in Patanjali’s products.
Appeal to rural-urban “aspiration and conservatism-driven” consumers -
Apart from appealing to the above consumer base, Patanjali also managed to
attract rural-urban “aspiration and conservatism-driven” consumers by
launching modern consumer household products which promised purity with
goodness, on the lines of major players.
Anti-foreign campaigns – Time and again, Baba Ramdev raised voices to
boycott “foreign” products, ranging from shampoos to colas, by showing their
ill-effects. This further created a loyal consumer base that promoted word-of-
mouth advertising for Patanjali and cleared ways for different product
categories.
Loyal employee structure– It is said that most of their employees are
volunteers and, from manufacturing to selling, most of them do not take
regular wages.
No financial burden and minimal advertising budget – Baba Ramdev’s
~40 crore corpus, that he garnered from his Yoga shivirs, satellite television
shows and donations, was utilised to kick start the empire. Further, Patanjali
relies heavily on word-of-mouth advertising, with a few commercials (such as
for cow’s ghee) to strengthen its brand identity and promise

15. Competitive Strategies
Marketing Strategies
 Targeted large market by focusing on economically and resources constraint masses.
 Prepared database of the people visiting the yoga camp.
 Built powerful partnership with various prominent T.V channels to broadcast his yoga camp
 world wide
 Create self esteem among his followers
 Baba has a vision to develop World’s largest food and Herbal Park.
 About7,000 people will get direct and about 200000 people will get indirect employment
opportunity through this project.
 An ever expanding product portfolio with brand extensions –
 Absence of a key sub-branded range under Patanjali “Umbrella” -
 Image driven branding –

16. Thank You For Your Attention!