2. TABLE OF CONTENT
What is Goal of Competition?
Developing an International Competitive Strategy
International Competitive Strategy
Offensive Strategy
Defensive Strategy
Diversification Strategy
Counter-cyclical Strategy
Niche Strategy
Conclusion
References
3. What is Goal of Competition?
Its is a competitive advantage arises from the
intersection of what the customer wants with how the
company delivers it and its fundamental indicator is
profitability.
We can build Competitive advantage by utilizing this
basic steps:
1.Determine what customers of that business really
need or want.
4. DEVELOPING AN INTERNATIONAL COMPETITIVE
STRATEGY
Factors to Consider
-The Value chain is an area through which company can
identify opportunity to lower costs or to find sources of
differentiation.
-These feature or characteristic can be found anywhere in
company, if they applied properly then they can achieve
efficiency, enhance quality, pursue innovation or improve
service.
-Distinctive competencies are based on resources and
5. CONTINUED……
-Valuable capabilities are those that create demand
among customers (Customers value).
-For an example APPLE Macs, iPod and iPhones an
extremely elegant technology.
-Amazon web-based catalogues and purchasing.
-Capabilities that are difficult to imitate based on
trade secrets such as KFC’s combination of herbs
and spices or Coco Cola’s Secret formula.
7. INTERNATIONAL COMPETITIVE STRATEGY
COMPETTIVE STRATEY: can be divided into the OFFENSIVE and the DEFENSIVE.
OFFENSIVE STRATEGY: Companies pursuing this strategy directly target
competitors from which they want to capture market share.
DEFENSIVE STRATEGY: Companies use this strategy to discourage or turn back
an offensive strategy on the part of the competitor
8. OFFENSIVE STRATEGY:
DIRECT ATTACK: it can slash prices, introduce new features, launch
comparison advertisements unfavourable to the competition, or go
after parts of the market that the competition has served poorly.
END-RUN: companies can avoid direct competition but still pursue
an offensive attach by going into unoccupied markets or countries
that have been ignored completely by the rest of the industry.
PRE-EMPTION: sometimes the first company into market gains a
position from which later entrants cannot dislodge it. They can
secure relationship with supplier and build relationships with best
customers.
ACQUISTION: company with deep pockets can eliminate a rival
simply by purchasing it. Acquiring a company in foreign market
can also bring advantages such as marketplace, geographic
9. DEFENSIVE STRATEGIES:
EXCLUSION: By setting up exclusive arrangements with key suppliers in the
market. This agreement will block new companies from accessing best
suppliers, sources, or partners.
PRICING: A simple strategy is to match any price cuts by the competition with
similar discounts, as long as the price war does not get out of hand and ruin
both sides.
FEATURES: Adding new features or capabilities can be a positive and appealing
way of countering a competitive challenge.
SERVICE: By promoting after sale service you can respond to competitor price
cuts or new features.
ADVERTISING: A strong public campaign demonstrating commitment to the
market, confidence in the products, or their willingness to meet the
competitors challenge.
COUNTER-PARRY: Companies respond to an attack in their own market from a
foreign competitor by moving into the competitors home market. For an
10. STRATEGIC OPTIONS FOR GROWTH:
DIVERSIFICATION STRATEGY: As company grows in international market,
company may decide to pursue a strategy of related diversification.
For an Example: A company succeeded in marketing house hold cleaning
products in market they may diversify by developing product lines in other
household consumer goods.
- A different diversification strategy is to acquire unrelated companies in any
industry, as long as they are fundamentally sound and display strong growth
potential.
COUNTER-CYCLICAL STRATEGY: Multinational corporations can pursue a
counter-cyclical strategy they can acquire positions in separate industries that
are affected by different or even contradictory long-term trends.
For an Example: A petroleum producer may also invest in alternative sources of
energy as a hedge against the time when supplies of crude oil start to dwindle.
11. Continued…
NICHE STRATEGY:
In effect to put the company in a position where it
does not have to compete with other. This is idea
behind the niche strategy, where it firm identifies
needs that are not being well addressed by existing
products or services and tries to satisfy those needs,
often using new technologies or combinations of
technology.
However companies pursuing niche strategies cannot
assume that the niche they identify is really viable
13. CONCLUSION:
• Classifying competitive strategies we can define value
disciplines to marketing strategy and deliver superior
value to customer. Each value add an pillar to build
lasting customer relationship.
• It will help our firms to analyze competitors and design
effective Competitive Strategies to gain Competitive
advantage.
