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Unit5CompetitiveMarketingstrategiesUnitGoalInthisunit,youarerequiredtomasterI.SeveralconceptsincompetitionII.Competitivestrategies1.Basiccompetitivestrategies2.CompetitivestrategiesofLeaders,challengers,followersandstopgapIII.5areasofcompetitivestrategiesI.Severalconcepts•1.Industry（行业）:definedasagroupoforganizationsthatofferproductsthatarenearsubstitutesforeachother.FastfoodSoftdrinkscompanies2.Competition•Thecoreofwhichisattractingcustomersandfightingformarketoutletssoastoincreasemarketsharesandtogetthemaximumeconomicefficiency.3.Economiesofscale（规模经济）•Themainfeatureofamarket•Thetheoryisthatthegreatertheeconomiesofscale,thegreaterthebenefitsaccruingtothosewithlargesharesofthemarket.•Largeplantsaremoreefficienttorun,andtheircostperunitofoutputmayberelativelyless.•IncreasecompetitionII.Competitivestrategies•1.Basiccompetitivestrategies•a.overallcostleadershipstrategy（总成本领先战略）:organizationshaveinvestedvastsumstoachieveeconomiesofscale.•Thatis,afirmsetsouttobecomethelowcostproducerintheindustry.•Wahaha•Annualsalesvolume–RMB70billion•Coke-cola—RMB18billion•宗庆后•Salesvolumein2009----25millionsets•Globalmarketshare—70%Wal-Martlowcosts•Directpurchasingfrommanufacturers•Lowcoststock-owndistributioncenter(配送中心）•Lowfreight-ownautoteam•b.Differentiationstrategy（差异化策略）:productdifferentiation,especiallybranding,removestheproductfromsomeofthemostdirectelementsofcompetition.•Thatis,afirmseekstobeuniqueinitsindustry.7up—cooldrinks•100%naturalflavors•Crisp,cleanandrefreshing北京海底捞火锅(hotpot)-differentiationinservices•Convenientparking-washingcars•Waitinginhappiness-gosurfingoninternetplayingchessenjoyingfreefoodnailtrimmingforwomen•Babysitterforchildren•Ramenperformance(拉面表演）•SecondfreefruitsSuntory三得利啤酒•1.Naturalmineralwater–238metersdeep•2.Safeandcleanbottles•3.Harringtonmalt(哈林顿麦芽)fromCanada,originhop(原产地酒花)fromGermanyandCzechRepublic,freshyeast(新鲜酵母)airedfromJapan.•46%marketshareinShanghaiFrenchwine:•波尔多(Bordeaux)和勃艮第(Burgundy)•88%ofwineproducedinBordeauxisred(usuallyreferredtoasclaret)•excellentenvironmentforgrowingvines.Thegeologicalfoundationoftheregionislimestone,leadingtoasoilstructurethatisheavyincalcium.c.focusstrategy（集中化战略）:segmentationfocus(细分重点）andproductpositioning（产品定位）areparticularlyeffectivedevicesforcompetitivepressure.•Originallyengagedintextiles,printinganddyeing,clothing,downproducts(羽绒制品)•NowengaginginmicrowaveovensengineerFredrikIdestam•Establishedin1865inFinland•Firstlyawood-pulpmill(木质浆纸工厂）•Secondlyrubberworkshop•Thirdly,expandingintoelectronics•Fourthly,journeyintotelecommunications•In1990s,telecommunicationsandmobilephonesdivisions--supportingpillarsoftheNokia.•Firmsdonotneedtoconcentrateonjustonestrategy.Casestudy:MaxwellHousedivisionofKraftGeneralFoods•Costleadershippositioninregulargroundcoffee•Differentiatedpositionwithseveralofothercoffees,suchasRichFrenchRoastandColumbianSupremeHondaCivicHatchbackHondaAccord•HondaCivilHatchback----acostleadershipinsubcompactcars（微型汽车）•Adifferentiatedposition----HondaAccord（本田雅阁）2.Leaders,challengers,followersandstopgap•a.leaders（领先者）:whoseproductstypicallyhaveamarketshareof50percentormore.Leadersofdifferentindustries•a.leaders:(1)Twomainstrategies:1)marketexpansion(searchfornewusers;developnewuses;persuadeexistinguserstobuymore)Casestudy:MCI—3strategies•Tofindnewusers,thefirmsexpandedintheEuropefromtheUnitedStates.•Itencouragedcardcallsandcollectcallswhileontravel.•Itofferedspecialratesonweekendstoincreasethewillingnessofuserstomaketelephonecalls.•2)Defenseofmarketshare•positiondefense（阵地防御）:bymakingthebrandimpregnable（坚固的）•preemptivedefense（先发制人防御）:bylaunchinganattackonacompetitorbeforeitcanbeestablished•Counter-offensivedefense（反击防御）:whichattacksthecompetitor’shometerritorysothatithastodivertitseffortsintoprotectingitsexistingproducts.b.Challengers•Thosecorporationsinthesecondaryposition---No.2•TheirpurposeistoincreasetheirmarketsharesFord(1)5strategies•Frontalattack（正面攻击）:toattacktheopponent’sstrengthsratherthanitsweaknesses---theoutcomedependsonwhohasthegreaterfirepowerandendurance.•Flankattack（侧翼攻击）:tozeroinonageographicalregionwherethemarketleaderismostvulnerable.•Encirclementstrategy（合围战略）•Bypassattacks（迂回进攻）:mostprevalentinhigh-techmarkets,whereachallengerputsitseffortsintobypassingexistingtechnologyandwinningthebattleforthenextgenerationoftechnologytobebroughttothemarket•Guerrillawarfare（游击进攻）:theattackermakesintermittentforayssothatthecosttotheattackerisminimizedandthattotheopponentmaximized.•C.followers（追随者）:whohaveminorsharesandmarginalpositions•Theirpurposeistomaintaintheirmarketshares.Boracomputerd.Stopgap（补缺者）•Smallcorporationsspecializingincertainproducts•Characteristic:specialization•E.g.shoesforthedisabledIII.5areasofcompetitivestrategies1)Product(usevalue)quality(core),types,size,packing2)Pricing3)services4)Promotion5)technologyAssignment•Infinancialcrisis,whatshouldNingboWorldhoteldotoimproveitsbusiness?