Marketing Management
Marketing Management
Marketing Management
Management
COMPETITOR COMPETITIVE
ANALYSIS ADVANTAGE
MARKETING DIGITAL
MYOPIA MARKETING
It is said that marketing is a race without a finishing line and having a competitive
advantage is like having an pair of power boosters in the race.
But advantages are temporary. Most advantages dont stay relevant and few are sustainable.
A company wins not with a single advantage but by layering one advantage on top of
another over time.
Companies can build a competitive advantage from many sources, such as superiority
in quality, speed, safety, service, design, and reliability, together with lower cost, lower
price, and so on.
It is more often some unique combination of these, rather than a single silver bullet, that
delivers the advantage.
A competitor that copies only a few of these practices will not succeed in
gaining an advantage.
Eg: Wal-Mart, IKEA, Indigo have a set of practices that have made them
leaders in their field.
In the 1990s managers will be judged on their ability to identify, cultivate, and exploit the core
competencies that make growth possible - indeed, they'll have to rethink the concept of the
corporation it self.C K Prahalad and G Hamel 1990
Core competencies are those capabilities that are critical to a business achieving competitive
advantage. In case of a conglomerate it would mean to identify the business that they are bestit.
For example, for a manufacturer of electronic equipment, key areas of expertise could be in
the design of the electronic components and circuits. For a ceramics manufacturer, they could
be the routines and processes at the heart of the production process. For a software company the
key skills may be in the overall simplicity and utility of the program for users or
alternatively in the high quality of software code writing they haveachieved.
The acronym stands for the Political, Economic, Social and Technological issues
In simple terms Value is the benefit derived from a product after the cost is removed.
Higher the cost of a product, lower the value. But there are few exceptions to this, eg:
Luxury products.
PROVIDE
CHOOSE COMMUNICATE
VALUE
Choosing the value Here marketers do their homework to segment the market,
select the appropriate target, and develop the offerings value proposition.
Providing the value Entails selecting specific product features, prices, and
distribution.
Customer oriented
Product oriented
Hollywood defined itself as being in Movie business rather than the much
bigger Entertainment Business. Movies implied a basic narrow product. So TVs
entry was seen as an instant rival rather than an opportunity to expand the
entertainment business
What ultimately saved Hollywood and accounted for its resurgence was the wave of
new young writers, producers, and directors whose previous successes in television
had decimated the old movie companies and toppled the big movie moguls.