Strategic Marketing Plan

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  Competitive Forces The competitive forces that affect a company and its marketing efforts can be analyzed using a variety of frameworks. One popular framework is the Five Forces Model, which was developed by Michael Porter. The Five Forces Model identifies five forces that shape competition in an industry:

• The threat of new entrants: This force reflects the ease with which new companies can enter the industry. If it is easy for new companies to enter the industry, then existing companies will face more competition and will have to work harder to maintain their market share.

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• The threat of new entrants: This force reflects the ease with which new companies can enter the industry. If it is easy for new companies to enter the industry, then existing companies will face more competition and will have to work harder to maintain their market share.
• The bargaining power of buyers: This force reflects the power that buyers have over suppliers. If buyers have a lot of power, then they can drive down prices and demand better quality products and services.
• The bargaining power of suppliers: This force reflects the power that suppliers have over buyers. If suppliers have a lot of power, then they can charge higher prices and demand better terms from buyers.
• The threat of substitute products: This force reflects the availability of substitute products. If there are a lot of substitute products available, then buyers will have more options and will be less likely to be loyal to any one company.
• The intensity of rivalry among existing competitors: This force reflects the level of competition among existing companies in the industry. If the rivalry is intense, then companies will have to work harder to differentiate their products and services, and they will have to invest more in marketing and advertising.

The Five Forces Model can be used to analyze the competitive forces that affect a company and its marketing efforts. By understanding these forces, companies can develop strategies that will help them to succeed in the marketplace. Analyzing Key Competitors In addition to the Five Forces Model, there are a number of other frameworks that can be used to analyze key competitors. One popular framework is the BCG Matrix. The BCG Matrix classifies businesses into four categories based on their market share and growth rate:

• Stars: These businesses have a high market share in a growing market. They are typically high-growth businesses that require a lot of investment.
• Cash cows: These businesses have a high market share in a mature market. They are typically low-growth businesses that generate a lot of cash flow.
• Question marks: These businesses have a low market share in a growing market. They are typically high-risk businesses that require a lot of investment to become stars.
• Dogs: These businesses have a low market share in a mature market. They are typically low-growth businesses that generate little cash flow.

The BCG Matrix can be used to identify key competitors and to assess their strengths and weaknesses. By understanding their competitors, companies can develop strategies that will help them to compete more effectively. Strategic Moves by the Competition In addition to analyzing key competitors, it is also important to monitor their strategic moves. This includes tracking their new product launches, their marketing campaigns, and their mergers and acquisitions. By monitoring the competition, companies can stay ahead of the curve and avoid being blindsided by unexpected moves. Market Share Market share is a measure of a company's share of the total sales in a particular market. It is calculated by dividing the company's sales by the total sales in the market. Market share is an important measure of a company's competitive position. Companies with a high market share are typically more successful than companies with a low market share. Competitive Advantages A competitive advantage is something that gives a company an edge over its competitors. It can be a product or service that is unique, a superior business model, or a strong brand. Competitive advantages can help companies to attract customers, grow their market share, and be more profitable. Conclusion The competitive forces that affect a company and its marketing efforts can be complex and ever-changing. By understanding these forces, companies can develop strategies that will help them to succeed in the marketplace. By analyzing key competitors, monitoring their strategic moves, and tracking their market share, companies can stay ahead of the curve and avoid being blindsided by unexpected moves. By identifying competitive advantages, companies can gain an edge over their competitors and grow their business.