Chap 9,strategies for firm


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This slide will give overview of leader, challenger & followers. it also added the market nicher. here you will get which kind of strategy is required to defence, attack & protect

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Chap 9,strategies for firm

  1. 1. .. ....
  2. 2. “Strategy is a choice . on how to compete.” .- Michael Porter
  3. 3. .. 10% 20% 30% 40% Market Market Market Market Nichers Follower Challenger Leader
  4. 4. For maintaining the market leadership the firm must maintain the three possible steps.• Expanding total Market• Defending Market Share• Expanding Market Share
  5. 5. Market leadership . Expansion of the Guarding the existing Expansion of the . overall market market share current market share •Target groups – •Strong marketcurrently non-users positioning •Heavy advertising •Identifying new •Developing •Improved distributionuses for the offering competitive advantage •Price incentives •Increasing usage •Product / process •New product rates innovation development •Heavy advertising •Mergers •CRM •Takeovers •Strong distribution •Geographic expansion relations •Distributor expansion
  6. 6. .. New customers More usage
  7. 7. • New Customer On the basis of features, Price & service one company can find out its new customer base. Company can find out this solution by searching the user in three ways• Market Penetration strategy Those customers might use it but they do not.• New Market Segment Strategy Those customer never use it• Geographical-Expansion Strategy Those Customers who lives elsewhere
  8. 8. • More Usage Increasing the usage in existing customer by several attractive ways will be the best solution. It can be done by using the following process• Increase the gradient• Force customer to increase the usage
  9. 9. ..
  10. 10. • Position DefenseMake the brand much superior almost leader in the market.LikeMaruti, Tata Truck.
  11. 11. • Flank DefenseHere Company prepare the outpost to protect its weak front. Company may launch the other product to counter the attack.Like surf excel came out with pouch after attacked by Nirma. It was to protect its main brand.
  12. 12. • Preemptive Defense Here company wants to defense itself by attacking before than competitors. The attack can be by Guerrilla process. Company can attack the competitors by randomly & anywhere.LikeSBI opened its branch approx 26.5K(14k own & 12.5k associate bank) & 45k ATM
  13. 13. • Counteroffensive Defense When hit by the attackers most of the company responds aggressively & counter attacked to the company frontal or hit its flank position.LikeReliance & Airtell hit Tata Indicom by decreasing its 1p/s call.
  14. 14. • Mobile defenseHere leader stretch its domain beyond the current & meet in new territory.LikeReliance now indulge in all types dealing
  15. 15. • Contraction Defense Sometime big company leaves their one or more area to give more focus on their parent goods or area. It is also known as strategic withdrawal.Like:Tata soap Ok, Bajaj Auto
  16. 16. .. Market Challengers Market Market Followers Nichers
  17. 17. • Define the strategic objective and opponents• Choose a general attack strategy• Choose a specific attack strategy
  18. 18. .. Frontal Attack Flank Attack Encirclement Bypass Attack Attack Guerrilla Attack
  19. 19. Frontal Attack: Here company attack to other company by copying almost the same theme of price, advertisement, Product & distribution. Expert says that that company will win which has greater resource.LikeWar of Coca Cola & Pepsi
  20. 20. Flank Attack: Here company attacks the other company’s weak point. It can find out the weak point by geographical & segmental. The challenger identifies spot area where company underpins.ExampleLG identify the geographical & launched its small town & rural market Color Television Sampoorna.Color channel beat all the big competitors by adopting different segment.
  21. 21. Encirclement Attack: Here Challenger attack the big company by offensive attack in all front, by superior product & high quality service. Challenger almost attacks in offensive way to the established company.LikeGoogle attacked on Yahoo in all front like search Engine, mail, News, Chat etc.
  22. 22. Bypass Attack: It is the most dangerous indirect assault strategy to attack the company. Here challenger attacks on that field where there is no base of present company.LikeNirma did it at the time of launching
  23. 23. Guerilla Attack: It is basically small, intentionally & harasses attack by the company or challenger to the existing company.
  24. 24. ..Counterfeiter Cloner Imitator Adapter