How “competitive” became turbulence to market
-in view of brand
Last class, we learned about competitive turbulence. When product successfully makes a profitable market, competitors get to look at the market and come into there. That makes a competition, and companies get to have needs to lower the price down in order to have comparable advantage. That calls the quality down, and then the product fails because of it – that is what we learned.-
Competitors might be turbulence by threatening the brand-power of original product. When companies easily have brand-power when they make new market – by its first-mover product, the success of the market calls competitor, and such of them tend to copy the concept of 1st mover. We call it ‘me-too’ products. They have no creative/distinguishable figure, but just follow the market trend. In case of view, they could bring the market-growth by spreading the product. However, me-too products have a dangerous characteristic.
They can spoil the market itself, then it could be failure not only competitors and themselves. It occurs because, consumers have the image to the market less clear and market has less impact on them. Consumers get to have an image to market by their 1st mover brand. Me-too product makes consumers confused to the brand, and the confusing moves to market itself. It brings the dislike to market, with the fall of demand, and it makes market fail.
We can look at the example of ‘Bi-rak Seekhye(rice nectar)”. 15 years ago, a traditional beverage “Seekhye” appeared to market. Soon it became an impressive trend on beverage market, because there was huge needs of traditional product on side effect of globalization (ex>UR) and there was no product which meets the need. Market size was rapidly grown in 140 times. No sooner as the product made a profitable market, the competitors came. Near 70 companies got into the rice-nectar market, and it brought the whole-market failure. Almost of them disappeared with depression of market, and now there is only 10 companies making “Seekhye”.
Companies use an interesting method to protect their brand – by registering almost of available brand name. When companies launch the product, they register not only their own name but similar brand name also, because me-too product primarily names the similar one to easily follow their concept. The article shows that brand is very important things by the ways of delivering the value of product to consumers, because consumers usually estimate the value by their brand-prefer than product itself. That is why companies put their efforts to ‘branding’.
-in view of brand
Last class, we learned about competitive turbulence. When product successfully makes a profitable market, competitors get to look at the market and come into there. That makes a competition, and companies get to have needs to lower the price down in order to have comparable advantage. That calls the quality down, and then the product fails because of it – that is what we learned.-
Competitors might be turbulence by threatening the brand-power of original product. When companies easily have brand-power when they make new market – by its first-mover product, the success of the market calls competitor, and such of them tend to copy the concept of 1st mover. We call it ‘me-too’ products. They have no creative/distinguishable figure, but just follow the market trend. In case of view, they could bring the market-growth by spreading the product. However, me-too products have a dangerous characteristic.
They can spoil the market itself, then it could be failure not only competitors and themselves. It occurs because, consumers have the image to the market less clear and market has less impact on them. Consumers get to have an image to market by their 1st mover brand. Me-too product makes consumers confused to the brand, and the confusing moves to market itself. It brings the dislike to market, with the fall of demand, and it makes market fail.
We can look at the example of ‘Bi-rak Seekhye(rice nectar)”. 15 years ago, a traditional beverage “Seekhye” appeared to market. Soon it became an impressive trend on beverage market, because there was huge needs of traditional product on side effect of globalization (ex>UR) and there was no product which meets the need. Market size was rapidly grown in 140 times. No sooner as the product made a profitable market, the competitors came. Near 70 companies got into the rice-nectar market, and it brought the whole-market failure. Almost of them disappeared with depression of market, and now there is only 10 companies making “Seekhye”.
Companies use an interesting method to protect their brand – by registering almost of available brand name. When companies launch the product, they register not only their own name but similar brand name also, because me-too product primarily names the similar one to easily follow their concept. The article shows that brand is very important things by the ways of delivering the value of product to consumers, because consumers usually estimate the value by their brand-prefer than product itself. That is why companies put their efforts to ‘branding’.
http://www.adic.co.kr/data/sem/cpr9814/cpr1.html statistics about decline of rice nectar market
http://media.daum.net/economic/others/view.html?cateid=1041&newsid=20020401060147165&cp=donga me-too product
http://www.hankyung.com/news/app/newsview.php?aid=2007032007831 protection of brand
http://media.daum.net/economic/others/view.html?cateid=1041&newsid=20020401060147165&cp=donga me-too product
http://www.hankyung.com/news/app/newsview.php?aid=2007032007831 protection of brand
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