Marketing Strategy based on Competitor Analysis – A Case in Vietnam Medicine Sector
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.