Final Mktng Ppt

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Competitive Positional

Strategies

MANGESH JOSHI

PIYOOSH BAJORIA

PIYUSH KISHANNEERAJ GOYAL

BANSI VYAS

MISHA DUA



OUTLINE...

Introduction

Strategies for1. Market Leaders

2. Challengers3. Followers, and

4. Nichers



Market Share...

Leader40%

Challenger30%

Follower

20%

Nisher

10%

Chart Title



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



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?



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



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).



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



CONTD...

Types of Attack Strategies

Frontal attack Flank attack

Encirclement attack Bypass attack

Guerrilla attack



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



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



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



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



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



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



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



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



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



Condition«

Substantial

Growth Potential Negligible interest to

competitor

Resources & skill

Defend attacks by customer

goodwill



EXAMPLE...



THANK YOU

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