Growth Strategy – Workshop 3 (Competitive Environment)
The Appleton Greene Corporate Training Program (CTP) for Growth Strategy is provided by Mr. Ardila Certified Learning Provider (CLP). Program Specifications: Monthly cost USD$2,500.00; Monthly Workshops 6 hours; Monthly Support 4 hours; Program Duration 27 months; Program orders subject to ongoing availability.
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Learning Provider Profile
Mr Ardila is the co-founder of The Hawksbill Group, a business consulting and investment firm advising medium and large clients in the public and private sectors. Mr. Ardila is also a member of the Board of Directors of Accenture, Goldman Sachs BDCs, Nexa Resources and Ola Electric Mobility. Prior to his current activities, he was Executive Vice President of General Motors and CEO of Latin America from 2010-2016 (March). In his 30-year career with GM, he held several important positions, including country CEO in Ecuador, Colombia, Argentina and Brazil, as well as CFO of Latin America, Africa and the Middle East. He also worked as an investment banker for the Rothschild Group from 1996-1998 and Secretary General at the Ministry of Industry and Trade in Colombia (1983-84).
Mr. Ardila is a graduate of the London School of Economics where he obtained a MSc. Degree in Economics. He has lived in 10 countries and speaks English, Spanish, Portuguese and German.
MOST Analysis
Mission Statement
A system where numerous businesses compete with one another utilizing diverse marketing channels, advertising strategies, pricing approaches, etc. is referred to as a competitive environment. Businesses should abide by the rules contained in this system. Your business and your decisions may be directly impacted by your rivals. Consider two rival online clothes retailers who compete with one another for customers and financial gain. Before Christmas, one of them decides to hold a flash sale where buyers may get 40% off anything on the website. The competing store will also need to develop a compelling offer to draw leads and consumers, boost sales, move off-brand merchandise, and ultimately increase profits. Similar to this, if a coffee firm releases a new product, its rival will need to think about growth hacking. Therefore, competition can be advantageous because it spurs businesses to improve themselves and their goods. Customers benefit from a competitive environment as well. Businesses frequently provide premium products at competitive prices to attract customers. Additionally, corporations must innovate in order to release their products. However, competition can occasionally make it more difficult for a business to survive. Consider two businesses that are housed in the same place. It will be challenging for the second company to compete if one of them sets low prices and discounts. It’s time to move on to the many sorts of competition that define the relationships between and among sellers and customers now that you understand how a competitive environment affects your business and customers.
Objectives
01. Competitive Environment Analysis: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
02. Identify Potential Competitive Offerings: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
03. Intellectual Property Reviews: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
04. Technology Stack Assessment: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
05. Porters Five Forces Analysis: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
06. Identify Competitor’s Team Members: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
07. Identify Competitor’s Investors: departmental SWOT analysis; strategy research & development. 1 Month
08. Identify Competitor’s Customers: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
09. Monopolistic competition: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
10. Monopoly: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
11. Oligopoly: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
12. Pure Competition: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
Strategies
01. Competitive Environment Analysis: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
02. Identify Potential Competitive Offerings: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
03. Intellectual Property Reviews: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
04. Technology Stack Assessment: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
05. Porters Five Forces Analysis: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
06. Identify Competitor’s Team Members: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
07. Identify Competitor’s Investors: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
08. Identify Competitor’s Customers: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
09. Monopolistic competition: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
10. Monopoly: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
11. Oligopoly: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
12. Pure Competition: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
Tasks
01. Create a task on your calendar, to be completed within the next month, to analyze Competitive Environment Analysis.
02. Create a task on your calendar, to be completed within the next month, to analyze Identify Potential Competitive Offerings.
03. Create a task on your calendar, to be completed within the next month, to analyze Intellectual Property Reviews.
04. Create a task on your calendar, to be completed within the next month, to analyze Technology Stack Assessment.
05. Create a task on your calendar, to be completed within the next month, to analyze Porters Five Forces Analysis.
06. Create a task on your calendar, to be completed within the next month, to analyze Identify Competitor’s Team Members.
07. Create a task on your calendar, to be completed within the next month, to analyze Identify Competitor’s Investors.
08. Create a task on your calendar, to be completed within the next month, to analyze Identify Competitor’s Customers.
09. Create a task on your calendar, to be completed within the next month, to analyze Monopolistic competition.
10. Create a task on your calendar, to be completed within the next month, to analyze Monopoly.
11. Create a task on your calendar, to be completed within the next month, to analyze Oligopoly.
12. Create a task on your calendar, to be completed within the next month, to analyze Pure Competition.
Introduction
A system where numerous businesses compete with one another utilizing diverse marketing channels, advertising strategies, pricing approaches, etc. is referred to as a competitive environment. Businesses should abide by the rules contained in this system.
How does a competitive environment affect businesses?
Your business and your decisions may be directly impacted by your rivals. Consider two rival online clothes retailers who compete with one another for customers and financial gain. One of them chooses to offer 40% off the entire website during a flash sale right before Christmas. The competing store will also need to develop a compelling offer to draw leads and consumers, boost sales, move off-brand merchandise, and ultimately increase profits.
Similar to this, if a coffee firm releases a new product, its rival will need to think about growth hacking. Therefore, competition can be advantageous because it spurs businesses to improve themselves and their goods.
Customers benefit from a competitive environment as well. Businesses frequently provide premium products at competitive prices to attract customers. Additionally, corporations must innovate in order to release their products. However, competition can occasionally make it more difficult for a business to survive. Consider two businesses that are housed in the same place. It will be challenging for the second company to compete if one of them sets low prices and discounts.
It’s time to move on to the many sorts of competition that define the relationships between and among sellers and customers now that you understand how a competitive environment affects your business and customers.
Types of Competitive Environment
To evaluate the business environment’s economic climate, it is crucial to comprehend the different types of competitive situations. To be able to understand industry and market news, policy shifts, and legislation in the future, you need be familiar with how businesses and markets operate. Let’s identify the primary categories of competitive situations and examine each one in greater detail.
• Pure competition. In an environment where competition is fierce, numerous small businesses manufacture comparable goods that are in high demand. Due to their modest size, these producers have no ability to change the price, which is determined by supply and demand for the product. For instance, when a farmer takes dairy products to the neighborhood market, he or she cannot alter the going price and must accept it.
• Monopolistic competition. In this setting, numerous producers create various goods that may or may not have the same function. Because of the variations in quality, features, and other factors, customers can discern between the products. Businesses actively utilize advertising to market their goods and persuade customers that they are superior to competing goods. Companies engaged in monopolistic competition have the power to set prices for their products because they are price makers. To differentiate themselves from other enterprises, they need offer something unique to support the price increase on their items, such raising the caliber of their goods.
• Oligopoly. There are typically two or more small enterprises in this market model. Companies cooperate rather than compete in order to gain high market returns, hence it is seen as steady. Prices are jointly set and maintained high by businesses or under the direction of a single business. Profit margins are higher in an oligopoly than they are in a more competitive setting. The primary issue with this market structure is that businesses frequently experience the prisoner’s dilemma, which provides an incentive to deceive and behave in their own best interests at the expense of other enterprises.
• Monopoly. One business creates a distinctive product. There is no competition for this company, and there are no alternatives for the product. A monopolist also establishes hurdles for new businesses to enter the market and determines the product’s pricing.
When joining the market, you should be aware of the four primary market structures: monopoly, monopolistic competition, oligopoly, and perfect competition. It’s time to move on to the study of the competitive environment.
Case Study: Beating the competition – Amazon Web Services
AWS provides a range of goods and services that are primarily classified into two categories: cloud computing and cloud storage. Although other businesses offer a lot of the same services, AWS stands out for its exceptional scalability and versatility.
AWS came to the realization that a business with processing peaks lasting only a few hours per day does not need to invest in pricey infrastructure around-the-clock. Similar to this, if just 5,000 people choose to use a company’s services after renting server space for a forecasted 10,000 consumers, the company stands to lose a lot of money.
Because of this, AWS customers only pay for what they really use. A company’s cost is automatically and proportionally reduced if it doesn’t use the available processing power at specific periods of the day (or week, or year). All AWS services can be quickly and simply terminated or added in accordance with the requirements of the client, according to a similar approach. AWS services are astonishingly affordable and practical for small, medium, and big businesses thanks to a customer-focused approach, which has helped them gain a 32% market share in the global cloud computing market.
Competitive Environment Analysis
Understanding your rivals’ strategies will help you create a winning marketing plan. To reach your company rivals at this point, you require a competitive analysis framework. Let’s talk about a few of the most common frameworks.
• SWOT Analysis. You can evaluate the internal and external forces affecting your business. With the use of this framework, you may pinpoint competitive advantages, assess your competitors’ strengths and weaknesses across various marketing channels, and determine your next marketing moves.
• Strategic Group Analysis. This framework describes the many strategic characteristics of all effective competitors’ strategies. It enables you to determine the positions of your rivals in the market and the elements that make your company profitable. Additionally, it enables you to measure your position among rivals and pinpoint the essential elements of success.