COMPETITIVE STRATEGIES FOR MARKET LEADERS

COMPETITIVE STRATEGIES FOR MARKET LEADERS

Competitive strategy refers the market strategy or the way or the procedure to run a business or organisation or to compete in the market without getting so much trouble:

1.Expanding the Total Market:

  • New customers: Unaware or Aware
  •  More usage: Amount and Frequency of consumption

2.Defending Market Share: Position Defence: Building Superior Brand Value

  • Flank Defence: Competitor’s price cut.
  • Increase price and put extra on advertising.
  • Pre-emptive defence: Attack before enemy starts pre-announcements.
  • Counter Offensive Strategy: Hero Pleasure: Big launch + Low price of sensitive product and more revenue from other products.
  • Mobile Defence: Diversification
  • Contraction Defence: Planned Contraction of under-performer.

3. Expanding Market Share

4. Frontal Attack: Value to customer by price cut

5. Flank Attack Enemy’s weak spots

  • identify and attack
  • Geographical Expansion

6. Encirclement Attack Wide range of Gadgets

7. By pass Attack Diversify unrelated product

8. Guerrilla Attack Pepsi v Coke: Aquafina and Tropicana

9. Counterfeiter: Duplicate sell in Black Market

10. Cloner:  New Packaging with slight variation

11.Imitator: Copy the concept

12.Adapter: Copy and improve


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