Exam 18: Creating Competitive Advantage

Firms that serve small segments not being pursued by other firms are called .

The goal of a "red ocean strategy" is to make competition irrelevant.

can adopt one of two competitive strategies: they can challenge the leader or they can play along with competitors and not rock the boat.

Destroying a close competitor can actually damage a company's market share in the long run.

Discuss the steps in analyzing competitors.

A negative side of the is that the company becomes too reactive.Rather than carry out its own customer relationship strategy,it bases its own moves on competitors' moves.

An example of competitor myopia was when Fujifilm sales unsuspectingly surpassed those of Kodak.

Companies need to know each competitor's product quality,features,and mix;customer services;pricing policy;distribution coverage;sales force strategy;and advertising and sales promotion programs.These are all the dimensions that identify groups within the industry.

What is the purpose of benchmarking?

To plan effective marketing strategies,the company needs to find out all it can about its employees.

A company can become so centered that it loses its even more important focus on maintaining profitable relationships.

Most companies are started by individuals who live by their wits.They visualize an opportunity,construct flexible strategies on the backs of envelopes,and knock on every door to gain attention.What stage in marketing strategy are these individuals in?

The market follower must keep its manufacturing costs and prices _ or its product quality and services .

The usually leads the other firms in price changes,new product introductions,distribution coverage,and promotion spending.

Companies that operate large marketing departments,conduct expensive marketing research,spell out elaborate competitive strategies,and spend huge sums on advertising are using competitive marketing strategies.

are those runner- up firms that are working to increase their market share in an industry.

Most of the market is in the hands of the _ ,the firm with the largest market share.

To remain number one,leading firms can take any of three actions.First,they can find ways to expand total demand.Second,they can protect their current market share through good defensive and offensive actions.Third,they can .

Although it might seem that the market leader has the most going for it,challengers often have what some strategists call a .The challenger observes what has made the leader successful and improves upon it.

A competitive analysis involves first identifying and assessing competitors and then selecting which competitors to attack or avoid.