Industry Situation Analysis

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Sense of urgency Table 3-3 CATEGORIZING THE OBJECTIVES AND STRATEGIES OF COMPETITORS Competitive Scope Strategic Intent Market Share Objective Competitive Position / Situation Strategic Posture Competitive Strategy Local Regional National Be the dominant leader Overtake the present industry leader Aggressive expansion via both acquisitions and internal growth Getting stronger on the move Mostly offensive Mostly defensive Striving for low cost leadership Multi-country Global Be among the industry leaders (top 5) Move into the top 10 Expansion via internal growth (boost market share at the expense of rival firms Well-entrenched able to maintain its present position A combination of offense and defense Aggressive risk-taker Conservative follower Mostly focusing on a market niche - High end - Low end Move up a notch or two in the industry rankings Expansion via acquisition Stuck in the middle of the pack - Geographic - Buyers with special needs Overtake a particular rival (not necessarily the leader) Hold onto present share (by growing at a rate equal to the industry average) Going after different market position (trying to move from a weaker to a stronger position) - Other Pursuing differentiation based on - Quality Maintain position Just survive Give up share if necessary to achieve short-term profit objectives (stress profitability, not volume) Struggling losing ground Retrenching to a position that can be defended - Service - Technological superiority - Breadth of product line - Image and reputation - Other attributes Note: Since a focus strategy can be aimed at any of several market niches and a differentiation strategy can be keyed to any of several attributes, it is best to be explicit about what kind of focus strategy or differentiation strategy a given firm is pursuing..


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