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Positioning and Competition

Positioning and Competition. Arild Aspelund. Competition in the Automobile Market. Competition in the Pasta Market. Outline. Porter’s competitive forces revisited Identifying competition Industry perspective Market perspective Analyzing competition Competitive strategies for incumbents

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Positioning and Competition

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  1. Positioning and Competition Arild Aspelund

  2. Competition in the Automobile Market

  3. Competition in the Pasta Market

  4. Outline • Porter’s competitive forces revisited • Identifying competition • Industry perspective • Market perspective • Analyzing competition • Competitive strategies • for incumbents • And new entrants • Positioning • PODs and POPs

  5. Porter’s Competitive Forces

  6. Identifying Competition • Industry concept of competition • Number of actors and degree of differentiation • Entry, mobility and exit barriers • Cost structure • Degree of vertical integration (but also horizontal) • Degree of globalization • Market Concept of Competition • With whom are you competing for buying power?

  7. Pure Monopoly Oligopoly Monopolistic Competition Pure Competition Primary states of Competition

  8. Analyzing Competition • Strategies • Objectives • Why are your competitors in your product market? • Strengths and weaknesses • Share of market • Share of mind • Share of heart • Selecting main competitors • Strong versus weak • Close versus distant • “Good” versus “Bad”

  9. 10% Market Nichers 20% Market Follower 30% Market Challenger 40% Market Leader An Example of a Market Structure

  10. Strategies for Market Leaders • Expanding the total market • More usage • New customers • Product diversification • Market diversification • Geographical expansion

  11. Strategies for Market Leaders- Defensive Strategies

  12. Market Challengers Market Nichers Market Followers Other Competitive Strategies

  13. Market Challenger Strategies • Set the strategic objective and choose the opponent • Choose the general attack strategy • Frontal attack • Flank attack • By geography or segments • Encirclement attack • Bypass attack • Guerilla warfare • Ex: Pepsico, NetCom, Synnøve Finden

  14. Counterfeiter Cloner Imitator Adapter Market Follower Strategies Kinesiske Chery QQ og Chevrolet Spark

  15. Niche Market Strategies • The strategy is basically to find a niche where competition is less intense, but profit potential is still significant

  16. Act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market. Positioning

  17. Brand Positioning – PODs and POPs • Points-of-difference (PODs) • Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand • Points-of-parity (POPs) • Associations that are not necessarily unique to the brand but may be shared with other brands

  18. Choosing PODs • Related to consumer desires • Relevance • Distinctiveness • Credibility • Related to ability to deliver • Feasibility • Communicability • Sustainability

  19. VS VS VS VS Differentiation Strategies • Product differentiation • Personnel differentiation • Channel differentiation • Image differentiation

  20. Product Life Cycles

  21. The BCG Matrix

  22. Summary and continuation • Summary • We have used Porter’s five forces to find concentrations of power and competitive barriers in an industry • We have defined some distinct categories of competition and set out some factors for competitive analysis • We have found some good strategies for incumbents and market challengers • Finally, we have defined the concept positioning and given some thoughts on PODs and POPs • Continuation • Service Marketing and Product Strategies

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