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The Best Defense is a Good Offense
Competition could be described as one of the most common driving forces among living organisms. Animals compete for territory, mates, food, and hierarchy within species. People compete for promotions, jobs, scholarships, in sports and in almost every aspect of their daily lives. Countries compete for the consumer in the world marketplace as do individual small business owners. Progress in the technology world by a rival can send profits of a successful business into a state of panic causing them to plunge overnight or within a few days. When taking into account these and other factors, it can be concluded that business is an extremely competitive, volatile field. Because of this unpredictability and competitiveness, it is important to know the competitors within a business market.
In order to better assess the competition a business must recognize the difference between markets. It must identify both direct and indirect competition, both present and future. Once competitors are grouped then analyzing their marketing strategies and identifying their areas of vulnerability by examining their strengths and weaknesses would the next logical step. (Deloitte & Touche, 2003) This will help the business determine and distinguish its competitive advantage. The reasoning behind this step is to have clear who the target market is, what the market position is, and knowing exactly what will make the business unique to stand apart from competitors.
In the case of Kudler Fine Foods, Kathy did not consider her business to have direct competitors, which in itself is a mistake of major proportions.
As soon as a competitor changes their plans or a new competition comes along customers may not want to change their mind about going to a different location (Belonwu). Having a “rivalry” may help concentrate on what needs to be improved in a business depending on what their weaknesses and strengths are. Having competition may be wonderful for the consumers because they have different choices to select what kind of brand of clothing, shoes, or a variety of tools, food and etc. Being able to choose a certain type of customer, may bring in a flow of customers that they’re are trying to reach out for; such as Walmart, they chose to sell products that are family oriented while having different areas in the store pertaining to men’s, women’s, and children’s necessities. If a customer is loyal and you all of a sudden are raising prices on items where they can get goods at a lower price elsewhere, that is causing a business to be disloyal due to competition.
Market structure is classified according to the degree of competition firms encounter in their industry (Baker College, 2016). There are four main market structures: pure competition, monopolistic competition, oligopoly and a pure monopoly. Pure competition is where fir...
• Discussing the two forces of competition, which are threat of new entrants and threat of substitutes, and identifying the most significant of those forces for McDonald’s Corporation.
Companies compete every day, in the stock market and out. Rising stock prices, profit gains, and increasing capital growth force companies of similar character to increase their productivity and wealth as well. Computer companies are especially guilty of this competitiveness. Every time a new, faster computer chip is introduced, every company tries to better it. These kinds of revisions are essential for economic growth, and likewise do not have a noticeably negative effect on our society. Every day there seems to be a new 10-10 number that you can dial to save on long distance phone calls. I personally don’t understand it, but there is obviously a market for long distance phone bill savings. This kind of competition is simple and innocent, but is becoming confusing. Sporting events have become more popular, and respectively more competitive. Little League is probably one of the worst areas for competition- not coming from the players, but from the parents.
Selecting a business strategy that details valuable resources and distinctive competencies, strategizing all resources and capabilities and ensuring they are all employed and exploited, and building and regenerating valuable resources and distinctive competencies is key. The analysis of resources, capabilities and core competencies describes the external environment which is subject to change quickly. Based off this information a firm has to be prepared and know its internal resources and capabilities and offer a more secure strategy. Furthermore, resources and capabilities are the primary source of profitability. Resources entail intangible, tangible, and human resources. Capabilities describe environment and strategic environment. Core competencies include knowledge and technical capability. In this section we will attempt to describe in detail the three segments which are resources, capabilities, and core competencies.
High degree of interdependence: the behaviour of firms are affected by what they believe other rivalry firms might do
Competitive rivalry examines how intense the competition currently is in the marketplace, which is determined by the number of existing competitors and what each is capable of doing. (Arline, 2015).
Discuss an assessment or evaluation strategy which may be used to help determine the marketing potential of an organization.
Firms may be categorized in a variety of different market structures. Perfectly competitive, monopolistically competitive, oligopolistic,
Competitive advantage is the advantage for the competitors and gained by the offerings from the consumers that have the greater value either by the low prices of the products and by providing the benefits and services to the consumers that denotes the high price. It is a set of the innovative and different features of the company and the products and services sale to the consumers so that company can achieve the targets what they have decided and it is the betterment for the enterprise in the competitive market (Porter, 2011). There are three determinants which can be used in the competitive advantage that what the company produce for their consumers, their target market that what they have to achieved and the competition from the other entity
1) As companies trying to sell consumers stuff, they are not competing with them, only other companies,
Degree of Rivalry - Very High to Intense – Multiple competitors, high strategic stakes, innovation often easily imitated, and low switching costs for consumers
Organizations with competitive rivalry aim to gain advantages over their competitors and often use competitive behavior which consists of competitive actions and responses (Hitt, 2013). The results are competitive dynamics which consist of competitive acts and responses by competing firms in the industry (Hitt, 2013). One of the main benefits of being competitive is that it often results in economic growth (Martin, 2014). It is also believed that competitive rivalry has an influence over a firm’s performance as well (GIBB, 2010). Porsche consistently makes effort to improve their quality and to work towards providing a wider variety of sports car options in the
5. What would a competitor of BP now discover about them in a competitor analysis?
Able to make valid and clear conclusions about the competition faced by the business, based on the analysis.