NK - Competitive response

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Competitive response

Which is the best?

Select the best approach depending on cost benefit tradeoff or urgency of response

Analyse cost of response approach

Analyse benefit of response approach

Analyse Feasibility per your own capability of each of the above

What are my response possibilities?

Try to change the PARTS - Players, Added Value, Rules, Tactics, Scope

Differentiate my self?

Hit the competition in its own core areas?

Beat the competition at the new game?

Match the competition eye to eye?

Do nothing?

How does the action Impact me?

What is the credibility of the threat?

Motivation

Reputation

Capability

What is the magnitude of the impact?

Impact on cost

Technology Impact

Supplier impact

Impact on revenue

How will my customers respond to the product offering?

Impact on price realization

Impact on quantity

Share of purchase decline

Customer switching

Substitute

Same category product

What is his motivation? Why is he doing?

Strategic

Future

Profit Growth

More profitable categories/Product Mix change

Diversification

Variability/Seasonality

Revenue Growth

Excess cash

Existing category stagnating/declining

Technology change

Supply drying up

Regulatory

Substitutes

Customer segments changing

What is the action?

Brand Strength

Place

Markets

Channel

Promotion

Price

Product

What is the value proposition

Who is the competitor?

Financial Strength

Experience/Reputation

Capabilities