Monday, November 27, 2006

Management Lite & Ezy 16 – Competitive Strategies for Market Challenger

Strategic Objectives

  • attack the market leader

  • attack firms of its own size that are not doing the job and are underfinanced

  • attack smaller local and regional firms


General Attack Strategies

  • Frontal Attack. The attacker matches its opponent's product, advertising, price and distribution.

  • Flank Attack. Target the enemy's weak spots.

  • Encirclement Attack. It involves launching a grand offensive on several fronts.

  • Bypass Attack. bypass the enemy and attack easier markets to broaden one's resource base. This strategy offers three lines of approach: diversifying into unrelated products, diversifying into new geographical markets, leapfrogging into new technologies to supplant existing products.

  • Guerrilla Warfare. It consists of waging small, intermittent attacks to harass and demoralize the opponent and eventually secure permanent footholds.


Specific Attack Strategies

  • price discount

  • lower price goods

  • value-priced goods and services

  • prestige goods

  • product proliferation

  • product innovation

  • improved services

  • distribution innovation

  • manufacturing-cost reduction

  • intensive advertising promotion


Reference: Kotler & Keller, “Marketing Management”, 12th edition


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