what is a competitor and complement
A competitor if customers value your offering less when they have the other firms offering than when they have your offering alone
Your product behaves as an alternative to a competitors product your increase In market share will direct decrease your competitors share
Firm is a competitor if customer value your offering more when they have the other firms offering than when they have your offering alone
Missing one
o The supplier perspective! As we always think from the customers point of view only
Competitor and complementor the supply side
Firm is your competitor if it is less attractive for a supplier to provide resources to you when its also supplying the other player than when its supplying you alone
Firm is complementor if its more attractive for a supplier to provide resources to you when its also supplying the other player than when its supplying you alone
Steps to competitor analysis
- Identify the company’s competitor
i. Industry vs market view not one is better but depends on situation - Assessing competitors objectives, strategies, strengths, weaknesses, and reaction patterns
- Selecting which competitors to attack or avoid
- Based on assessing the above you can see weather to attack competitor or not
Industry vs Market POV for identifying competitors
Industry point of view
o Firms with the same product class
o Ex: McDonalds and Wendy’s
Market point of view
o Companies trying to satisfy the same customer need
o Ex; McDonald’s and Grocery store
Market positions on matrix
Market leader
– largest market share
* Ex; McDonalds
Market Challenger
– many not be trying to gain market share to unseat the leaser,,,, or often may not
* Ex: Burger King
Market Follower
– tend to let other lead while they try to mimic those above them
* Just mimic others in the market
* Ex: Sonic or A& W
Market nicher -
-Do not compete with the same customer that market leaders
* Creating experience and creating value
* Ex: 5 Guys
How do you evaluate competitive strength?
UGC
- Use social media to ask customers what they like about social media
o Use the reviews of customers and classify them
Perceptual maps
