Strategy Dynamics Briefing 59: Competing through intermediaries

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Intermediaries give rise to powerful type-3 rivalry, both in B2C and B2B cases. Often, a key objective for suppliers is to capture more share of the intermediaries’ attention, so they promote the supplier’s product more strongly to the end-customer.
Attention” comes in various forms:

  • A consumer-goods producer wants retailers to allocate a larger share of shelf space to its product than to rival products in the same category.
  • Business supplies companies fight for more pages in distributors’ catalogues than competitors.
  • Insurance companies want ...
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Strategy Dynamics Briefing 53: Type-3 rivalry for disloyal customers

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In many markets it is hard to make customers loyal, so few can be described as being ‘our‘ customers. Many coffee store users certainly do not use a single store in their locality exclusively, but visit two or more interchangeably. These people constitute an additional population to those shown in Briefings 50-52—disloyal customers. They may reach that state from the start, following the sequence of behaviors described in the choice pipeline of Briefing 40, from where it may be possible ...

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Strategy Dynamics Briefing 52: When type-1 and type-2 rivalry operate together

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It is rare for any type of rivalry to operate entirely alone…

Examining the three main types of rivarly:

  • Type-1 rivalry to capture new potential customers could feasibly happen if the product or service is entirely new, and if any customer, once committed, would find it hard to switch. The market for enterprise-resource-planning systems (ERP) comes close to this ideal – once a substantial business has committed to using SAP it would be complex and costly to throw that out and use something else.
  • Type-2 could only ...
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