Download - Final Mktng Ppt
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 1/21
Competitive Positional
Strategies
MANGESH JOSHI
PIYOOSH BAJORIA
PIYUSH KISHANNEERAJ GOYAL
BANSI VYAS
MISHA DUA
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 2/21
OUTLINE...
Introduction
Strategies for1. Market Leaders
2. Challengers3. Followers, and
4. Nichers
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 3/21
Market Share...
Leader40%
Challenger30%
Follower
20%
Nisher
10%
Chart Title
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 4/21
INTRODUCTION« A competitive strategy
consists of moves to Attract customers
Withstand competitivepressures Strengthen an organization·s
market position
Objective Generate a competitive
advantage Increase loyalty of customers Beat com etitors
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 5/21
Which strategy to use«?
Depends on answers to the following:
Is it worth fighting? Are you strong enough to fight?
How strong is your defense?
Do you have any choice but tofight?
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 6/21
Market Leader Strategies«
Expanding the total demand ± Finding new users ± Discovering and promoting new
product uses ± Encouraging greater product
usage Protecting market share
±
Many considerations ± Continuous innovation
Expanding market share ± Profitability rises with market
share
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 7/21
Example...
Some well-known market leaders are:-
Microsoft (computer software),
Intel (microprocessors), Gatorade (sports drinks),
Bets Buy (retail electronics),
McDonald (fast food), Gillette (razor blades),
United Health (health insurance)
Visa (Credit cards).
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 8/21
Market Challenger
Strategies«The market challengers· strategic
objective is to gain market shareand to become the leadereventually.
How?
By attacking the market leader
By attacking other firms of thesame size
By attacking smaller firms
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 9/21
CONTD...
Types of Attack Strategies
Frontal attack Flank attack
Encirclement attack Bypass attack
Guerrilla attack
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 10/21
Frontal Attack«
Seldom work unless
± The challenger has sufficientfire-power (a 3:1 advantage) andstaying power, and
± The challenger has cleardistinctive advantage(s)
e.g. Japanese and Korean firmslaunched frontal attacks in variousASPAC countries through quality,price and low cost
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 11/21
Flank attack«
Attack the enemy at its weakpoints or blind spots
Ideal for those who do not havesufficient resources
e.g. In the 1990s, Yaohan attackedMitsukoshi and Seibu·s flanks byopening numerous stores in
overseas markets
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 12/21
Encirclement attack«
Attack the enemy at manyfronts at the same time
Ideal for challenger havingsuperior resources
e.g. Seiko attacked on
fashion, features, userpreferences and anythingthat might interest the
consumer
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 13/21
Bypass attack«
By diversifying into unrelated products
or markets neglected by the leader Could overtake the leader by using new
technologies
e.g. Pepsi use a bypass attack strategyagainst Coke in China by locating itsbottling plants in the interior provinces
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 14/21
Guerrilla attack«
By launching small, intermittenthit-and-run attacks to harass anddestabilize the leader
Usually use to precede a strongerattack
e.g. airlines use short promotions
to attack the national carriersespecially when passenger loads incertain routes are low
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 15/21
Market-Follower Strategies«
Theodore Levitt in his article,´Innovative Imitationµ argued thata product imitation strategy mightbe just as profitable as a productinnovation strategy
e.g. Product innovation--Sony
Product-imitation--Panasonic
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 16/21
CONTD...
Each follower tries to bring distinctiveadvantages to its target market--location, services, financing
Four broad follower strategies: Counterfeiter (which is illegal)
Cloner e.g. the IBM PC clones
Imitator e.g. car manufacturers
imitate the style of one another Adapter e.g. many Japanese firms are
excellent adapters initially beforedeveloping into challengers andeventually leaders
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 17/21
Market-Nicher Strategies«
Smaller firms can avoid larger
firms by targeting smaller marketsor niches that are of little or nointerest to the larger firms
e.g. Logitech--miceMicrobrewers³special beers
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 18/21
CONTD...
Nichers must create niches,expand the niches and protectthem
± e.g. Nike constantly created newniches--cycling, walking, hiking,cheerleading, etc
Major risk faced by nichers? ± Market niche may be attacked
by larger firms once they noticethe niches are successful
8/3/2019 Final Mktng Ppt
http://slidepdf.com/reader/full/final-mktng-ppt 19/21
Condition«
Substantial
Growth Potential Negligible interest to
competitor
Resources & skill
Defend attacks by customer
goodwill