| Chapter 7 |
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| Competitive Positioning |
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| Ch7. Competitive Positioning |
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| • Short Description |
| • Background |
| • Strategic Rationale & Implications |
| • Strengths & Advantages |
| • Weaknesses & Limitations |
| • Process for Applying Technique |
| • Summary |
| • FAROUT |
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| FT Press 2007. All Rights |
| Reserved. |
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| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
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| Ch7.2 |
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| Ch7. Competitive Positioning |
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| Short Description |
| • Analyze a position relative to one’s own in order |
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| to: |
| – Preserve an advantage |
| – Attempt an improvement |
| – Withdraw from a market |
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| • Looks at: |
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| – Market share, client perceptions, current |
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| marketing strategies, prices and costs, and |
| competitors’ positions. |
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| FT Press 2007. All Rights |
| Reserved. |
|
|
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
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| Ch7.3 |
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| Ch7. Competitive Positioning |
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| Background |
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| 1950’s-60’s |
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| Late 60’s- |
| 70’s |
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| •‘Corporate planning’ approach by firms founded on |
| steady expansion in a stable financial environment. |
| •Marketing tells about product benefits in comparison |
| with competition. |
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| •Corporate planning shifts to strategic planning and |
| management to as competition increases and market is |
| more volatile. |
| •Marketing attempts to change perception of product in |
| the mind of the customer by creating unique position. |
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| 1980’s- now •Competitive positioning continues to evolve to provides |
| information with importance to the development of a |
| strategic plan by giving a firm an overview of its industry |
| and enabling it to appraise its own competitive position. |
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| FT Press 2007. All Rights |
| Reserved. |
|
|
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
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| Ch7.4 |
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| Ch7. Competitive Positioning |
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| Strategic Rationale & Implications |
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| • Analysis should reveal firms’ position within an industry. |
| • Overview of industry as a whole. |
| • A variety of tools and models can assist, including: |
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| Porter’s Five Forces Industry Analysis |
| Nine Forces Industry Analysis |
| BCG Matrix |
| McKinsey Matrix |
| Perceptual Maps |
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| FT Press 2007. All Rights |
| Reserved. |
|
|
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
|
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| Ch7.5 |
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| Ch7. Competitive Positioning |
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| • Strategic Rationale & Implications |
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| 4 Directions for any Strategy |
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| Develop firms’ |
| position |
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| Expand niche |
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| Minor to dominant |
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| Joint to sole |
| dominance |
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| Maintain strong position |
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| Preserve market share |
| in mature market |
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| Defend dominant position |
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| Withdraw from market |
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| Price cutting strategy |
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| New product |
| strategy |
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| Other strategies |
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| Market decline or |
| obsolescence |
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| Unsuccessful |
| expansion |
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| FT Press 2007. All Rights |
| Reserved. |
|
|
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
|
|
| Ch7.6 |
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| Ch7. Competitive Positioning |
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| Strengths and Advantages |
| • Improves decision making |
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| • Provides information for firms of all sizes, |
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| stages, and positions on: |
| – Gaps in marketplace |
| – Viability of products or markets |
| – Competition in new markets |
| – Attracting investment and creating alliances |
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| FT Press 2007. All Rights |
| Reserved. |
|
|
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
|
|
| Ch7.7 |
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| Ch7. Competitive Positioning |
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| Weaknesses and Limitations |
| • Care must be taken in defining industries and |
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| markets. |
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| • Competitor information is not always available. |
| • Competitor and new product information is not |
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| always accurate. |
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| • Results may be limited by internal biases. |
| • Third party analysts may be misled by incomplete |
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| information. |
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| FT Press 2007. All Rights |
| Reserved. |
|
|
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
|
|
| Ch7.8 |
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| Ch7. Competitive Positioning |
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| Process for Applying the Technique |
| Can be defined as a broad 3-step process: |
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| 1. |
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| Identify focus of your firm's current strategy and |
| analysis parameters such as market or products to be |
| assessed. |
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| 2. Conduct analysis with the following: |
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| • Market segmentation |
| • Industry Analysis |
| • Market Research |
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| 3. Derive insights from the above analysis and formulate |
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| positioning strategy for your firm. |
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| FT Press 2007. All Rights |
| Reserved. |
|
|
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
|
|
| Ch7.9 |
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| Ch7. Competitive Positioning |
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| Process for Applying the Technique |
| • Step 1: Assess current strategy and market, |
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| product, project, parameters. |
| – What is the scope of this project? |
| – What do you plan to do with this information? |
| – Will research be done in house, or by a third |
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| party? |
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| FT Press 2007. All Rights |
| Reserved. |
|
|
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
|
|
| Ch7.10 |
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| Ch7. Competitive Positioning |
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| Process for Applying the Technique |
| • Product Market Matrix |
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| Markets |
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| current |
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| potential |
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| Products |
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| Current |
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| Potential |
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| c |
| u |
| r |
| r |
| e |
| t |
| n |
| t |
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| *SOURCE: Royce and Morse (1983), Competitive Analysis, SRI International. |
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| FT Press 2007. All Rights |
| Reserved. |
| |
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
| |
| Description |
| Business Volume |
| Demand Trends |
| Competition |
| Market Shares |
| Technology Changes |
| Ease of Entry |
| Compatibility |
| Exit Barriers |
| |
| Description |
| Business Volume |
| Demand Trends |
| Competition |
| Market Shares |
| Technology Changes |
| Ease of Entry |
| Compatibility |
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| Options |
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| Keep or drop? |
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| Determine |
| Product |
| Structure |
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| Set Pricing |
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| Options |
| Determine |
| Product |
| Structure |
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| Choose timing |
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| Go/No go |
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| Ch7.11 |
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| Ch7. Competitive Positioning |
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| Process for Applying the Technique |
| • Step 2: Conduct Analysis |
| – Market Segmentation: |
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| • Identifiable and measurable |
| • Accessible by communication/distribution |
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| channels |
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| • Have unique needs |
| • Be stable over time |
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| – Segments may be made up of |
| individual or industry consumers. |
| |
| FT Press 2007. All Rights |
| Reserved. |
| |
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
| |
| Ch7.12 |
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| Ch7. Competitive Positioning |
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| Process for Applying the Technique |
| • Step 2: Conduct Analysis: Market Segmentation |
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| Individual |
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| Industry |
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| Geography |
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| Demographics |
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| Psychographics |
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| Behavior |
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| Geography |
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| Client Type |
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| Client Behavior |
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| FT Press 2007. All Rights |
| Reserved. |
| |
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
| |
| Ch7.13 |
| |
| Ch7. Competitive Positioning |
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| Process for Applying the Technique |
| • Step 2: Conduct Analysis: Industry |
| |
| – SWOT Analysis |
| – Porter’s Five Forces Model |
| – Other tools |
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| • Step 2: Conduct Analysis: Market Research |
| |
| – Preferably conducted by third party. |
| – Use surveys, telemarketing, face-to-face |
| |
| interviews. |
| |
| FT Press 2007. All Rights |
| Reserved. |
| |
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
| |
| Ch7.14 |
| |
| Ch7. Competitive Positioning |
| |
| Process for Applying the Technique |
| • Step 3: Formulate position strategy |
| |
| – Use combination of perceptual maps, strengths and weaknesses of |
| self and competitors on matrices, and refer back to information |
| gathered in Steps 1&2. |
| |
| Strength/Weakness Evaluation Matrix: Sales Force Quality |
| SOURCE: Royce and Morse (1983), Competitive Analysis, SRI International |
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| Much Better |
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| Somewhat Better |
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| Same |
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| Somewhat Worse |
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| Much Worse |
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| 0 |
| Strength or Weakness |
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| 2 |
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| 4 |
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| 6 |
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| Relative Importance to success |
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| 8 |
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| 10 |
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| FT Press 2007. All Rights |
| Reserved. |
| |
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
| |
| Ch7.15 |
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| Ch7. Competitive Positioning |
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| • Summary: |
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| Complete competitive positioning analysis will have: |
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| – Outline of current and potential products/markets |
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| • Product/market matrix can be helpful. |
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| – Identified competitive practices in the industry including |
| • Costs, revenue and profits, opportunities, weaknesses to |
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| exploit and strengths to overcome or avoid. |
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| – Factors contributing to client satisfaction with their |
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| current suppliers |
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| • Ability to understand value of purchases, availability & |
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| convenience of products, quality of service, loyalty, effort |
| required to change suppliers. |
| |
| FT Press 2007. All Rights |
| Reserved. |
| |
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
| |
| Ch7.16 |
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| Ch7. Competitive Positioning |
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| Summary Continued: |
| • Undertake an overall appraisal of the competitive |
| |
| environment to identify any strategies or tactics, which |
| may improve your firm’s competitive position and identified |
| a set of strategies to take the firm where it wishes to go in |
| an industry. |
| |
| • Should have comprehensive view of the market. |
| • Any gaps or unmet needs should be apparent. |
| |
| FT Press 2007. All Rights |
| Reserved. |
| |
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
| |
| Ch7.17 |
| |
| Ch7. Competitive Positioning |
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| • FAROUT Summary |
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| 1 |
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| 2 |
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| 3 |
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| 4 |
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| 5 |
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| F |
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| A |
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| R |
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| O |
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| U |
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| T |
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| FT Press 2007. All Rights |
| Reserved. |
| |
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
| |
| Ch7.18 |
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| Ch7. Competitive Positioning |
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| Related Tools and Techniques |
| • Industry Analysis |
| • SWOT Analysis |
| • Value Chain Analysis |
| • Competitor Analysis |
| • Financial Ratio and Statement Analysis |
| • Customer Segmentation Analysis |
| • BCG Growth/Share Portfolio Matrix |
| • GE Business Screen |
| |
| FT Press 2007. All Rights |
| Reserved. |
| |
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
| |
| Ch7.19 |
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| Ch7. Competitive Positioning |
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| Related Tools and Techniques Cont’d |
| • Supply Chain Analysis |
| • Product Line Analysis |
| • Benchmarking |
| |
| FT Press 2007. All Rights |
| Reserved. |
| |
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
| |
| Ch7.20 |
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| Ch7. Competitive Positioning |
| |
| For More About Competitive |
| Positioning and 23 Other Useful |
| Analysis Methods, see: |
| |
| Fleisher, Craig S. and Babette E. |
| Bensoussan |
| |
| Business and Competitive |
| Analysis: Effective Application of |
| New and Classic Methods |
| |
| Upper Saddle River, NJ |
| 2007 |
| |
| FT Press 2007. All Rights |
| Reserved. |
| |
| Business and Competitive Analysis. |
| By C. Fleisher & B. Bensoussan. |
| |
| Ch7.21 |
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