Tuesday, November 23, 2010

Competitive Strategy Topics


We discussed the use of a Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis and the basic questions you need to answer along with some examples can be found at this site. Then later, we showed a video by an Oxford professor pointing out that the analysis must be uniquely relevant, concrete and based on specific segments:





This QuickMBA article is a good overview of Porter's Five Forces model for competitive strategy.

We talked about the strategies outlined in the Marketing Playbook, so you can visit the site for that book for more resources. Here is a summary of the 5 strategies:

  • No. 1: Drag Race: Pick a company and try to beat it in head-on competition. Example: Microsoft Excel vs. Lotus 1-2-3.
  • No. 2: Stealth: Remain under the radar, slowly gaining on the competition. About 90 percent of startups begin in stealth mode. Example: when Enterprise Rent-a-Car focused on in-city rentals rather than airport business. It handles replacement cars for people who have been in accidents and loaner cars for repair shops.
  • No. 3: Platform: This is where a company allows others to succeed. Example: A mall that draws in shoppers for multiple stores.
  • No. 4: Best of Both: Bringing two ends of the market together. Example: Volkswagen, which ties the reputation of an economical, high-performance, German-engineered car for regular people.
  • No. 5: High-Low Play: A product that can be both a big-margin product and a low-end product that sells a lot. Example: Michael Graves, the architect known for hip teapots, has crossed the chasm by selling both expensive ones and a mass-produced version at Target.


We highlight how Apple has been using differentiation as a key element in its advertising. Here is a video with many of those famous tv ads:

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