Volume 11 - Volume 11
Marketing Strategy based on Competitor Analysis – A Case in Vietnam Medicine Sector
Abstract
M.Porter theory has mentioned competitors in a five-force model for analyzing business environment
of a company.
We would like to make further analysis, in this study, related to marketing strategy based on
competitor risk analysis in a typical case study in Vietnam medicine sector. Base on this analysis, we
aim to create a resource of competitive information for marketing strategy, that what several
scientists called resource -advantage marketing strategy.
In this field of marketing there are some our previous researches relating, so together with this study
we could draw a theory of marketing strategy based on competitor risk analysis.
Authors through this study has found out that elements of marketing including our rivals or
competitors in business environment can influence market risk from a quantitative point of view in a
two factors model, and this research paper estimates the impacts of not only the size of firms’
competitors, but also leverage, on the market risk of listed medicine companies in this category.
Our main findings also show that risk variation (by beta var) can be reduced and minimized in case
we keep the same size of rival or competitor, approximately (with equity beta var 0,09).
At last, this paper illustrates findings show us that medicine sector need to reassess their business
environment in case and the size of competitor smaller, and in the mean time, risk might reduce in
case of smaller competitor size.
Our research limitation is we need to expand research model to other industries.
Paper Details
PaperID: 1919
Author's Name: Le Thi Thanh Huong, Dinh Tran Ngoc Huy, Nguyen Thi Hang and Nguyen Tien Dung
Volume: Volume 11
Issues: Volume 11
Keywords: Marketing Strategy, Competitor Theory, Competitive Firm Size, Market Risk, Vietnam, Medical Industry.
Year: 2021
Month: May
Pages: 103-111