超强竞争理论

1、整理课件HypercompetitionHypercompetitive RivalriesRichard DAveni and Robert Gunther整理课件The PLC PhaseFocus on the firm andits strategies at differentstages of the PLCSWOT frameworkHypercompetition PhaseFocus on the competitiveinteractions w.r.t. the fourcompetitive arenasC-Q/T-K/S/D frameworkValueNet Pha

2、seFocus on all the playersrelevant to your operationsPARTS frameworkNumber of PlayersComplexity of Analysis整理课件Limitations of traditional viewA key limitation of all the above strategies is that it ignores the dynamics of competition in the marketplace. While the issue of foremost importance for the

3、 company is the customer, DAveni notes that competitive interaction among firms typically goes through six stages整理课件Strategic Competitive AdvantageProfits from asustained competitiveadvantageTimeLaunchExploitationCounterattackProfits from aseries of actionsTimeExploitationLaunchCounterattackFirm ha

4、s already moved to advantage 2Traditional ViewHypercompetition整理课件DEC DEC in minicomputers. The company posted a 31% average growth rate from 1977 to 1982 by focusing on the minicomputer. The company clung so tenaciously to its advantage in minicomputer technology that it failed to develop a strong

5、position in the emerging markets for minicomputers and PCs. As CEO Ken Olsen commented in 1984 (Businessweek), “We had 6 PCs in-house that we could have launched in the late 70s. But we were selling so many (VAX minis), it would have been immoral to chase a new market.” 整理课件HypercompetitionFour aren

6、as of competition Cost & Quality (C-Q) Timing and know-how (T-K) Strongholds (S) Deep pockets (D)整理课件Coke vs. PepsiCoke: 1886; Pepsi: 18931933: Pepsi struggling to stave off bankruptcy. Dropped price of its 10c, 12 oz. bottle to 5c, making it a better valueAd jingle “twice as much for a nickel”

7、better known in the US than the Star Spangled BannerPepsiCokePrice / OuncePrice / OuncePepsiCokePerceived QualityPerceived Quality整理课件Coke vs. Pepsi, Contd.PepsiCokePrice / OuncePrice / OunceFirst move:PepsiChallengePerceived QualityPerceived QualityuPepsi keeps price advantage through 60s and 70s,

8、when Pepsi charged its bottlers 20% less for its concentrateuWith rising ingredient costs, Pepsi could no longer offer twice as much for the same price. So it raised price to Cokes level giving it a war chest to fuel an aggressive ad campaignuBattle shifted from Price to Quality, with Pepsi targetin

9、g the youthuWhat followed was the Pepsi Challenge & “Real Thing” Coke ads Youth & MiddleClass Segments2nd move:Cokes Ad war整理课件Coke vs. Pepsi, Contd.Price / OuncePrice / OuncePerceived QualityPerceived QualityuPerceived quality caught up. Deeper pocketed and lower cost Coke initiated a price

10、 war in selective markets where Pepsi was weak in the 70s. Pepsi responded with its discounts and by the end of the 80s, 50% of food store sales were on discountuOther companies moved into the lower left quadrant of the market. But the two major players forced price down to “ultimate value.”uTo brea

11、k price spiral, Coke launched New Coke to keep Coke loyals and induce switching among Pepsi buyers. Rejected by market.uAttempts to move to next arena via niches in caffeine and sugar substitutesGenericsRC ColaCoke &PepsiPriceSpiralNewCokeActualClassic Coke& PepsiNewCokeIntended整理课件Price-Qua

12、lity ManeuversPrice WarFull line ProducersNiching & OutflankingMove to Ultimate ValueAttempt to redefine QualityCommodity like MarketReturn to Price WarsMove to the next ArenaThe Cycle of Price-Quality Competition - MovingUp the Escalation Ladder整理课件PricePerceived Quality.#1 Low quality (leaky)

13、unbranded& 2 piece diapers#2 Pampers (P&G)#3 Kimbies (Kimberly Clark)#4 Huggies (Kimberly-Clark)#5 Luvs (P&G)Creeping up the line in diapers整理课件The Move Towards Offering Ultimate ValueE1DE2E3E4DE5V1V2V3First Value LineNext Value LineUltimate Value LinePerceived QualityPrice整理课件The Fast F

14、ood BusinessPerceived QualityPriceM1B1W1W2B2M2UVWendysBurger KingMcDonalds整理课件Firm builds a Tech. ResourceBase to create advantageThen moves into a new marketfirst: PioneerFollowers imitate products & overcome switching costsand brand loyaltiesPioneer throws up impediments to imitationFollowers

15、overcome impedimentsand replicate pioneers resource baseFirst mover uses a TransformationStrategy & abandons product design/technology based approachBuilds resources to match followersmanufacturing skillsPrice WarFirst mover uses a LeapfrogStrategy to a new resource baseFirst mover movesdownstre

16、am intohigher value addedproductsEscalating costs &risks each cycleCycle of Timing / Know-HowCompetition整理课件The First Dynamic Strategic Interaction:Capturing First Mover Advantages Response lags: Obtaining monopoly rents Economies of scale Reputation, switching costs and loyalty Advertising and

17、channel crowding User-base effects: Network size and user base provide funds for the next leap Producer learning / experience effects Pre-emption of scarce assets (McDonalds restaurant locations)First movers need Innovation skills Customer knowledge Market penetration and marketing skills Flexible m

18、anufacturing skills整理课件The Second Dynamic Strategic Interaction:Imitation & Improvement by FollowersDiffusion is rapid when reverse engineering is easy equipment suppliers help transfer key technologies or other business know-how industry observers, trade associations, etc. help transfer know-ho

19、w personnel move to rival firms frequently leaks of secret information are commonplace and not illegalTo win, an imitator needs 3 things that fall in these regimes: Appropriability - related to the strength of patents and other legal protection and the difficulty for followers to invent around paten

20、ts Dominant design paradigm - if follower enters before a dominant design emerges, it has a better shot with own design Complementary assets - marketing, manufacturing, and other skills are needed to produce a new product整理课件The Second Dynamic Strategic Interaction:Imitation & Improvement by Fol

21、lowersFollower strategies work best when the first mover is unable to keep up with demand (Adidas & Nike - no fortressing), is not satisfying all segments of consumers or all varieties of needs ( flanking) or has a design flaw that can be corrected (aspirin vs. buffered aspirin) Pure imitation s

22、trategy Adding bells & whistles P&G - Crest (basic toothpaste); Lever - CloseUp (+freshen breath and whiten teeth) and Aim (gel + fluoride protection); Beecham - AquaFresh (fights cavities + freshens breath + whitens teeth) Stripping down: Niche airlines Flanking products Reconceptualized pr

23、oducts: Mobike from inexpensive transport to vehicle for fun and recreation to a status symbol Risk reduction: warranties, free samples, etc. Compatible products整理课件The Third Dynamic Strategic Interaction:Creating Impediments to ImitationDeterrent pricing Secret information (Coke formula, SABRE inve

24、stment costs)Size economiesContractual relationshipsThreats of retaliationPatentsBundles products (follower does not have access to all components)Switching costsRestrictive (e.g., geographic) licensing (e.g., Sealed Air)Time$ / UnitTime$ / UnitCostCostPriceIntroductoryPrice UmbrellaFollowers enterP

25、rice competitiveMarket整理课件The Fourth Dynamic Strategic Interaction:Overcoming the Impediments Deterrent pricing: No problem if the follower is resource rich; Process innovations Secret information: Reverse engineering, experimentation (private label colas) Size economies: Process innovations; build

26、scale in one geographic area and expand (Japanese auto builders); No problem if growth exceeds first movers capacity Contractual relationships: New supplier, vertical integration Threats of retaliation: Some may not be credible if innovator also loses Patents: Increase imitation costs only by 11% Bu

27、ndled products: Joint ventures, vertical integration Switching costs: Advertising, promotions, etc.; may make market more attractive as follower can reap the benefits once in整理课件The Fifth Dynamic Strategic Interaction:Transformation or Leapfrogging Transformation strategy Compaq - from a premium pri

28、ced innovator to a low cost manufacturer Leapfrogging strategy Cyrix introduced the 486 clone in 18 months, compared to the standard 3 to 4 year industry cycle. And produced it at 4% of Intels initial investment. For a while also hoped to leapfrog Intel P&G and Ultra thin diapers in Japan McDona

29、lds leapfrogged over competition by reconceptualizing itself as a restaurant - not just a place for burgers 整理课件The Fifth Dynamic Strategic Interaction:LeapfroggingTrinitron TVBetamaxWalkmanIPEIPEIPEI: New product IntroducedP: Profits from price umbrellaE: Profit decline due to new entry and R&D

30、 for next project整理课件The Sixth Dynamic Strategic Interaction:Downstream Vertical Integration Sony entered the software side of the entertainment business with Columbia Pictures - but imitated by Matsushita Intel and motherboards Problem is that it ties up resources that could fruitfully be committed

31、 to building the companys core businesses整理课件Strongholds and Entry BarriersMaxwell house was dominant in the East Coast market and Folgers was strong in the West Coast. After being acquired by P&G, Folgers entered the Cleveland market to increase its eastern penetration. Maxwell countered by att

32、acking Folgers stronghold; lowering prices and increasing ad expenditures in Kansas city. Maxwell also introduced a “fighting brand” called Horizon which was similar to Folgers in taste and in packaging. Folgers then escalated by entering Pittsburgh. Maxwell responded by entering Dallas with reduced

33、 prices. The battle continued until the market was no longer two coastal segments but one national battleground 整理课件Strongholds and Entry BarriersBIC revolutionized the disposable ballpoint pen with its mass merchandising skillsGillette entered the market for disposable pens (PaperMate), overcoming

34、entry barriers (access to distribution channels, economies of scale in advertising, brand equity, etc.) by using its own considerable skills in mass merchandising. So BIC counter- attacked by entering Gillettes stronghold, disposable razors - giving rise to multi-market competition. 整理课件FedEx vs. UP

35、SUPS Dominant in ground based parcel delivery service, such as department store parcels. FedEx grabbed market share of air-borne delivery, i.e., overnight service. Now, UPS is launching an all-out attack to garner a bigger chunk of the lucrative overnight business, where FedEx is king (60%).United S

36、tates Postal Service - leader in two-day delivery, wants to move into the overnight business. Companies are taking the battle to the others turf. “Theyre beginning to diversify further into each others core markets. Federal (Express) has introduced some time-deferred, ground-based capabilities, Rock

37、el said. “At the same time, UPS has developed (the) express air-based ability of their company. The fevered rush to capture business has also spread to the Internet. Both companies have web sites where consumers can order merchandise and businesses can track shipments. Even more importantly, both UP

38、S and FedEx are investing billions of dollars to build distribution systems in Europe and Asia, betting on those largely untapped markets整理课件Management Challenges Do you base your strongholds on geographic areas (Folgers) or product markets (FedEx)? How do competitors define strongholds? Where are y

39、our strongholds vulnerable to attack? What barriers do you use to protect your strongholds? What barriers are used by your competitors? How can you respond to an attack from outside? How will you make the move into another players stronghold? What competitive response do you anticipate? Who and what

40、 are setting the pace of escalation down the strongholds ladder in your industry? Why?整理课件Build entry barrier around market Ato exclude competitionBuild entry barrier around market Bto exclude competitionCircumvent barriers and attackniche in market BShort Run: Withdraw from niche or fail to respond

41、Delayed Response: Barriers to contain entrant to a segment of BEntrant breaches barriersor triggers price war in BIncumbents stronghold in B weak-ens as it grows more competitiveLong Run:Incumbent attacks entrants market A to punishEntrant responds in market A or inmarket BStandoff until one party g

42、ains theupper hand in market A or BBoth strongholds erodeor merge into onemarketPrice WarOther firmdivestsOne firm builds newstrongholdCyclerestarts withentry into anew marketIf one firm dominatesSTRONG-HOLDSARENA整理课件Shifting know-how in pharmaceutical industryS k illE ffe c tF irm sD ire c t se lli

43、n g top h y sic ia n s, 1 9 5 0 sA llo w e d fo r th ee ffe c tiv e m a rk e tin g tog a te k e e p e rs ine c o n o m ic tra n sa c tio n sP fiz e r / L e d e rle ;C re a te d e ffe c tiv ed iffe re n tia tio n o fp ro d u c ts a m o n gg a te k e e p e rs“ B lo c k b u ste r”m a rk e tin g , e a r

44、ly m id8 0 sS in g le p ro d u c t fo c u s o fe n tire d e ta il fo rc e a n dp ro m o tio n ; e ffe c tiv ew ith n a rro w p ro d u c tlin eG la x o ; c re a te d a n e ww a y to se ll; th ro u g hse llin g , g a v eb lo c k b u ste r p o te n tia l toa c h e m ic a lly in d iffe re n td ru gS p e

45、 c ia liz e d se llin gS p e c ia liz e d sa le sfo rc efo r d iffe re n t th e ra p e u ticc la sse s / m e d ic a lsp e c ia litie s; m o re fo c u sw ith b ro a d p ro d u c t lin eM e rc k ; S p e c ia llytra in e d a n d fo c u se du n its in c a rd io ,h o sp ita l, e tc .H a n d lin g re g u

46、la to ryre q u ire m e n tsS p e e d s d ru g to m a rk e t,e x p a n d in g tim ea v a ila b le to p a te n t fo re c o n o m ic p ro fitsM e rc k ; M a rio n : O flim ite d v a lu e w ith o u tc o m p e te n c e ina c q u irin g n e w d ru g s整理课件Deep pocket developsLaunches attack todrive out sma

47、ll firmsAntitrust laws invoked - workoccasionallySmall firms forcedto outmaneuverdeep pocketHostile takeoverof large firmSmall firm escalatesown resource baseCooperative strategy developsAvoidance strategyniching, etc.Large scalealliances form with equally deep pocketsDeep pocket advantage is elimin

48、ated or neutralizedBuyers or suppliers develop acountervailingforceNew attempt to escalate resourcesCycle of DeepPockets Competition整理课件Kroger becomeslarge & powerfulDrops pricesAntitrust suitsfiled by rivalsKroger winssuitsMany takeover attempts from outside industrylead to high leverageMergers

49、AcquisitionsSmall chains seekniches. Kroger alsoniches geographicallyto avoid competitionIndustryconsolidationDeep pocket advantage is eliminated or neutralizedLarge wholesalersprovide economiesto smaller storesContinued M&A in industryCycle of DeepPockets Competition整理课件HypercompetitionuThe new 7S frameworkuSuperior stak