Competitive Response

Why?

New product? Competitor's strategy changed? Other competitor's increased market share

Strategy

Acquire a competitor Merge with competition Copy competition

Pricing Strategies

Competitive pricing Hire the competition's management Cost-based pricing Increase prole with marketing campaign Price-based costing

Objectives

Increase market access

Diversify holdings

Pre-empt the competition Growth relative to market share Changes in market share Increase volume Customer polls Increase amount of each sale Price competitive? Increase prices Competitor's strategies (marketing and product development) Create seasonal balance Mergers and acquisition Price Fair? Affordable? How? Assessment (increasing sales doesn't necessarily mean increasing prots)

Increasing Sales

Tax advantages

Incorporate synergies

Increase shareholders value

How to pay?

What if the economy sours...? Get cost breakdown Investigate for irregularities Benchmark competitors Labor-saving technologies Assessment Reducing Costs

Due Diligence

What shape is the economy in? The industry?

How secure are it's markets? It's customers?

What are the margins? Cost analysis - Internal

Union wages, suppliers, materials, economies of scale, increased support system Economy, interest rates, government regulations, transportation/shipping strikes

Competitive response to acquisition

Cost analysis - external

Legal issues

Exit Strategies Identify revenue streams Percentage of total revenue of each ID xed costs Unusual balance ID variable costs Have percentages changed? Shifts in costs Costs Operations Scenarios Revenue E(P=R-C)M Always look at external factors rst Increasing Prots

How long to keep?

Divest parts of the organization?

Strategy Scenarios

Strategy Scenarios

Strategies

Increase distribution channels Increase product line Invest in major marketing campaign

Unusual costs? Benchmark competitors Reduce costs without damaging revenue streams

Growth Strategies Assessment

Diversity of products or services offered Is the industry growing? How are we growing compared to the industry? Prices relative to competitors

Expand into new areas Increase sales (volume and force)

Volume Competitors marketing and development Which segments have the most potential?

Increase marketing Funding for higher growth Reduce prices Current industry structure Improve customer service Performance, margins Life cycle? (Growth, transition, mature)

Learn about company Review services, products, nances Secure funding Review talent and culture Determine short term / long term goals Business plan Reassure clients, suppliers, distributors

Strategy

Turnaround

Industry Analysis

Major players and market shares

Industry changes (new players, new technology

Drivers (brand, size, technology) Product Special or proprietary? Suppliers Financing? Patented? Substitutions? New Product Advantages and DISADVANTAGES Place in product line Cannibalizing our own products? Replacing existing product? Future Product availability How many?

What's going on in their market

Prioritize goals and develop some small successes for momentum

Expanding or shrinking

Merge and acquisition

Barriers to entry or exit?

Market Strategy

Expanding customer base Prompting competitive response Barriers to entry Major players and market share

Customers

Who? How to reach them? Retention - how to hold them?

Financing

How funded? Best allocation of funds? Debt viable?

New Business

Market

Who is the competition and their market share? Products comparison Barriers to entry

Cost Benet Analysis

Management Marketing and strategic plan Distribution channels Product Customers Finance Market Competition

Market share

Competitive products and services Entering a New Market Barriers to entry

Entry

Start from scratch

Acquire an existing player

Joint venture/strategic alliance with existing player