Competitive

advantage

Todays Companies

Competitive advantages require delivering

more value and satisfaction to target
consumers than competitors do

Competitive marketing strategies are how

companies analyze their competitors and
develop value-based strategies for profitable
customer relationships

Competitive Strategy
Definition:
Strategy A complete contingent plan
Example: Hyundai long-term plan of fearless marketing and

quality improvements

Definition:
Compete-- To strive consciously or unconsciously for an
objective
Examples:

Offense vs. Defense (sports)

Price Cuts
Toasted Subs??
Enterprise vs. Hertz

Basic Competitive Strategies

Michael Porters four basic
competitive positioning strategies

Overall
OverallCost
Cost
leadership
leadership

Differentiation
Differentiation

Focus
Focus

Middle
Middleof
of
the
theroad
road

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New strategies
OPERATIONAL
EXCELLENCE
CUSTOMER INTIMACY
PRODUCT
LEADERSHIP

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Operational excellence

Product leadership

Customer
intimacy

Competitive Positions
Market
leader
strategies

Market
challenger
strategies

Market
follower
strategies

Market
nicher
strategies

Expand total demand

Protect current market
Expand market share

Strategies

LEADER
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Attack: Challenge the

leader
Avoid: Play along,
2nd Mover advantage

Strategies

CHALLENGER
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Learn from leader

Avoid development costs
Follow closely/at a
distance

FOLLOWER

Strategies

Specialization is key
Focus on:
markets, customers,
products, mixes

NICHER

Strategies

Sustaining Competitive Advantage

Let us watch an entire movie in 2 minutes:

Moneyball

What happens next? Is Oakland a baseball

powerhouse?

The key is continuous, relentless

innovation and improvement

Dell Adamo

Umpqua Bank Video Case

With what companies does Umpqua compete?

What is Umpquas competitive advantage?

Categorize it according to the class
framework.

BECU
Smaller banks

Personalized service, friendly staff

Coffee shop feel

Will Umpqua be able to maintain this

advantage in the long run? Why or Why not?

Its ambiance can be easily replicable

Citibank

Competitors: Wells Fargo, Chase

Competitive Advantage

Global bank
One of the biggest banks in the world
Market leader, large market share

Will it be able to maintain this advantage?

It will be hard for other banks to match its large

market share