How to Deal with Competition
Fighting back the competition is a huge challenge that an organization has to face. Therefore, there should be some competitive strategies to survive even in tough competition. Analysing the competition is the most important work that the marketer need to do before building the brand but how to identify the competition is more important task that needs to be done. Here in this post some factors that the competitor should remember while Dealing with Competition are discussed.
Bases for the Competition – The analysis of the customer is done on following basis :
Michael Porter has identified 5 forces that determine Segment Structural attractiveness : industry competitors, potential entrants, substitutes, buyers, and suppliers. Threats these forces pose are as follows :
After knowing who the customers are the next important step is identifying the main competitors and analysing their strategies, strengths and weaknesses.
The company should mainly focus on three variables when it comes for competitors, these three variables are:
There are generally three types of competitors,
Selection of Competitors is the very important task that must be performed in a very attentive way as Selecting the right competitors is the base to grow the Completion in future.
Types of Competitions:
Perfect Competition: In this type of Competition very large number of firm are involved with homogeneous products. There is no control over the price s in perfect competition. Financial market is mainly focused and Market exchange method is employed as a Method of marketing.
Imperfect Competition: Imperfect Competitions are of following types-
a) Monopolistic Competitions: Here large number of firms with real or perceived product differentiation are involved. Competition advertising or quality rivalry method of marketing are involved.
b) Oligopoly Competition: In this case little or no product differentiation are involved.
c) Monopoly Competition: In this case single producer or without close substitutes are involved with the employment of Promotional advertising in case supply is large method of marketing is involved.
Competitive Strategies for Market Leaders:
Following is the list of some competitive strategies that must be employed by the Market leaders to run their business in a more effective way.
Some Other Competitive Strategies involve Market-Challenger Strategies
(a) Price discount,
(b) Lower price goods,
(c) Value-priced goods and services,
(d) Prestige goods,
(e) Product proliferation,
(f) Product innovation,
(g) Improved services,
(h) Distribution innovation,
(i) Manufacturing-cost reduction,
(j) Intensive advertising promotion
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