Washington Mutual Google n Yahoo Chapter 17

Chapter 17

Creating Competitive Advantage

Individual Assignment

1. Read the opening vignette to the chapter. Think about answers to the following questions:
1. How might an assessment of competitors have led to Washington Mutual’s strategy?
2. Develop a customer value analysis on Washington Mutual. Develop one for another bank. What do they have in common? What is different?
3. According to Michael Porter, what basic competitive strategy is Washington Mutual following? Is there a better one for them to follow?
4. Do you think Washington Mutual is balanced in its orientation to customers and competitors? Explain your answer.

Share your findings with the class.

Think-Pair-Share

1. Consider the following questions, formulate an answer, pair with the student on your right, share your thoughts with one another, and respond to questions from the instructor.
1. List the steps in analyzing competitors.
2. What is “competitor myopia”?
3. How do companies assess competitors?
4. What is a strategic group?
5. What is benchmarking?
6. What type of reactions might a competitor be expected to have with respect to a company’s strategies?
7. How does a company select competitors to avoid and attack?
8. What is a competitive intelligence system?
9. With respect to marketing strategy and practice, three stages often describe the path taken by firms. As entrepreneurs begin their marketing journey, what are the three stages that may await them?
10. List and describe Michael E. Porter’s four basic competitive positioning strategies. Which of the four strategies is to be avoided? Why?
11. How do Porter’s strategies match those of Treacy and Wiersema?
12. List and describe each of the competitive position strategies described in the chapter. Demonstrate the advantages/disadvantages of each position and associated strategies employed by each of the positions. See Table 17.1.
13. Name one market nicher that you think will be making it big in the near future. Why?
14. Compare and contrast competitor-centered, customer-centered, and market-centered companies. Which form would you rather work for? Why?

Outside Example

Google is a name known by virtually everyone these days. Known for an incredible search engine, it recently went public with resounding success. Its IPO was credited with opening the market back up for technology stocks.

Google is popular not only because its search engine is superb, but also because it strictly segregates paid placements. While other search engines use pop-up ads and also lists Web sites that have paid them money first in their results pages, Google won’t do that. Many searchers never even notice the discreet advertising on the right side of the screen after they’ve entered a search term, but it’s there, and can be incredibly useful for those who wish to purchase what they are searching for.

But can Google maintain its current competitive advantage? Yahoo! and Microsoft are hot on its heels.

1. Research and report on the competitive reactions of Yahoo! and Microsoft to Google’s stunning success. Should Google have been able to predict it?
2. What is Google’s basic competitive strategy? Will it be effective in the long term? Explain your answer.
3. What is Google’s competitive position? Is it pursuing the correct strategy, given its position?
4. Do you think Google is balanced in its orientation to the market? Defend your response.