The document discusses competitive strategies that provide businesses with advantages against their competitors, encompassing cost leadership, differentiation, and focus. It details three value disciplines—operational excellence, customer intimacy, and product leadership—each representing a method to offer superior customer value and build strong relationships. Companies like Wal-Mart, Ritz Carlton, 3M, and Intel exemplify these strategies in their respective industries.

1. Group IV
Gandharav Mendiratta(067)
Sakshi Mehra (70)
Harshit Arya (79)
Aditya Bansal (66)
Juhi Negi (76)

2. Competitive Strategies
Strategies that strongly position the company against
competitor and give the company strongest possible
strategic advantage.
Competitive Strategies helps in:
1. Building profitable customer relationships
2. Gaining competitive advantage
3. Analyzing their competitors

3. Continued….
 No company can follow only one strategy.
For example, Johnson & Johnson uses one
marketing strategy for its common product such as
BAND-AID & Johnson’s baby products; and different
marketing strategy for its High Tech healthcare
products such as Vicryl Plus, antibacterial surgical
sutures or NeuFlex finger joint implants.

4. Basic competitive strategies
 Over cost leadership
 Companies try to achieve the lowest production and
distribution cost.
 Low costs let its price lower than its competitors and
win a large market share.
 Example:- Big bazaar

5.  Differentiation
 Company concentrates on creating a highly
differentiated product line and marketing program
so that it comes across as the class leader in the
industry.
 Example:- IBM & Samsung follow this strategy in
information, technology and services and consumer
electronics and household appliances, respectively.

6.  Focus
 Company focuses its efforts on serving a few market
segments well rather than going after the whole
market.
 Example:- Tetra food supply 80% of pet tropical fish
food.

7. • Companies can pursue any of the three
strategies called value disciplines for
delivering superior customer value.
 Operational excellence
 Customer intimacy
 Product leadership

8. First value disciplines
1. Operational Excellence :
 To be a leader in operational excellence, a company
must provide reliable products or services that can be
purchased at competitive prices and with minimal
difficulty or inconvenience.
 Organizations that have adopted a strategy of
operational excellence boast
highly efficient delivery
processes built around
sophisticated information
systems.

9.  Wal-Mart is recognized over the world for its cost
efficiencies. If a price war were to break out
tomorrow, the giant retailer could outlast all its
competitors. It can therefore maintain the lowest
prices and attract those customers who base their
buying decision primarily on price.
 Likewise, Dell Computer competes successfully with
its higher-profile counterparts, because it has a
substantially lower cost structure

10. Second value disciplines
2. Customer Intimacy :
 While companies that excel at operational excellence run
their businesses as lean, mean machines and those
pursuing a strategy of customer intimacy provide
superior value by tailoring and shaping products and
services to unique customer needs.
 Value-added services, focused
marketing, and responsive/flexible
processes are the hallmarks of this
value discipline.

11.  Ritz Carlton Hotels was identified as a customer
intimacy leader.
 The Ritz Carlton has built a database on its
customers. Every time a customer stays at the
hotel, that information is accessed to establish the
needs of that customer.
 The hotel responds accordingly, whether it is by
leaving fruit instead of chocolates in the room, or
placing the telephone on the other side of the bed for
left-handed guests. It is attentive to customer needs.

12. Third value discipline
3. Product Leadership :
 A product leader continually develops new and
unique products and services that have an emotional
and rational surplus value for clients.
 Product leaders do not have to have the lowest-cost
operations because their customers are not price-
sensitive — their priority is getting the hottest new
product, whatever it might cost.

13.  3M has a policy stating that 25 per cent of its
corporate revenues must come from products that
have been created in the last three years.
 Another product leader, Intel, is constantly
reinventing the computer chip, often displacing its
own products in the
market.

14. Conclusion
 Classifying competitive strategies as value
disciplines defines marketing strategy in terms of
single minded pursuit of delivering superior value to
customers.
 Each value discipline defines a specific way to build
lasting customer relationship.
 It helps the firms to analyze their competitors and
design effective competitive marketing strategies to
gain competitive advantage.

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