The Strength of Competitive Analysis - 905 Words

OUTLINE INTRODUCTION: Competition Theories Compete It is never doubted by academic circles and business environments that the strength of competitive analysis, if not the top, is one of the most important critical success factors in creating and managing marketing strategies. The way a business adapts to competitive environments, characteristic of its focus being self-centered, competitor-centered, customer-driven or market driven (Day and Nebugandi, 1994), will define its place in the complex marketing arena. However, different theories of competition seem to compete in offering better explanations for key macro and micro phenomena. In this paper, we attempt to review the different perspectives on The Comparative†¦show more content†¦Thus, firms observe competitive advantages and disadvantages, where the parity state belonging to static command markets are never observed. As seen in Figure 1, CATC suggests that, firms have to manage and optimize resources, tangible and intangible, in order to gain comparative advantage over their competitors. Comparative advantage provides the firms to gain market positions that possess competitive advantage which will aid the firms in reaching their absolute goal: superior financial performance. The arrows depict a continuous marketing management process that fit with the dynamic nature of CATC competition. A COMPARISON: CATC Neoclassical Theory of Perfect Competition (NTPC) One might summarize that CATC differentiates itself from the classical view by the following four qualifiers: innovative, bountiful, high quality and rich diversity. Table 1 illustrates the differences between the two theories according to ten major variables. The only similarities between CATC and NTPC are that they both accept the firms as input combiners and humans as motivated by self-interest. (Deligà ¶nà ¼l and Çavuà ¾gil, 1997) As the neoclassical theory translates as perfect competition with homogeneous firms, resources, consumer preferences and products, the firms objective is to maximize profit and the role of management is to only implement the production function. In this static market, the resources are onlyShow MoreRelatedValue Chain Analysis : A Competitive Strength Of The Organization1527 Words   |  7 PagesValue chain analysis describes the activities within and around an organization, and relates them to an analysis of the competitive strength of the organization. Therefore, it evaluates which value each particular activity adds to the organizations products or services. This idea was built upon the insight that an organization is more than a random compilation of machinery, equipment, people, and money (Tallon, 2011). Only if these things are arranged into systems and systematic activates it willRead MoreSwot Analysis Of Fedex s Competitive Strength, A Swot Analysis1191 Words   |  5 Pa gesV.R.I.O. To assess Xiaomi’s competitive strength, a VRIO analysis has been performed. Xiaomi’s products are highly valuable to customers; this is evidenced by the sales records Xiaomi sets in its flash sales. Xiaomi does not flood the market with its phones, it instead only sells its phones online and has a limited number of models, Xiaomi’s hi-tech smartphones have the latest hardware but are offered at a very reasonable price and this policy of low prices and controlled distribution gives Xiaomi’sRead MoreGlobal: Strategic Management and Analysis1041 Words   |  5 Pagesdescription of the context and of the decision which has to be made. 2. 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When we want to analyze an internal environment of an organizational, we have to identify its strength (what an organization best in) and weaknesses (what an organization weak in). While, to analyze the external environment of a company, we have to identifyRead MoreInternal Environment Resources and Capabilities of an Organization1034 Words   |  4 Pagesand support activities of an organization. Two key factors, which are important in doing an internal analysis, are Resource Based View framework (RBV) and Porters Value Chain. These factors are also described. The Resource Based View framework was criticized by some researchers and the factors of this criticism are described (Michael A. Hitt, 2008). Body In order to understand the internal analysis, it is imperative to make a clearly distinguish between the primary and support activities. 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