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

1. .. .
..
.

2. “Strategy is a choice .
on how to
compete.”
.
- Michael Porter

3. .
.
10% 20% 30% 40%
Market Market Market Market
Nichers Follower Challenger Leader

4. For maintaining the market leadership the firm
must maintain the three possible steps.
• Expanding total Market
• Defending Market Share
• Expanding Market Share

5. Market leadership
.
Expansion of the Guarding the existing Expansion of the
. overall market market share current market share
•Target groups –
•Strong market
currently non-users
positioning •Heavy advertising
•Identifying new
•Developing •Improved distribution
uses 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. .
.
New customers
More usage

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. • 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

10. .
.

12. • Position Defense
Make the brand much superior almost leader in
the market.
Like
Maruti, Tata Truck.

13. • Flank Defense
Here 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.

14. • 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.
Like
SBI opened its branch approx 26.5K(14k own &
12.5k associate bank) & 45k ATM

15. • Counteroffensive Defense
When hit by the attackers most of the
company responds aggressively & counter
attacked to the company frontal or hit its flank
position.
Like
Reliance & Airtell hit Tata Indicom by
decreasing its 1p/s call.

16. • Mobile defense
Here leader stretch its domain beyond the
current & meet in new territory.
Like
Reliance now indulge in all types dealing

18. • 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

19. .
.
Market
Challengers
Market Market
Followers Nichers

20. • Define the strategic objective and opponents
• Choose a general attack strategy
• Choose a specific attack strategy

22. .
.
Frontal Attack Flank Attack
Encirclement
Bypass Attack
Attack
Guerrilla Attack

24. 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.
Like
War of Coca Cola & Pepsi

25. 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.
Example
LG identify the geographical & launched its small
town & rural market Color Television Sampoorna.
Color channel beat all the big competitors by
adopting different segment.

26. 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.
Like
Google attacked on Yahoo in all front like
search Engine, mail, News, Chat etc.

28. 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.
Like
Nirma did it at the time of launching

29. Guerilla Attack: It is basically small, intentionally
& harasses attack by the company or
challenger to the existing company.

30. .
.
Counterfeiter
Cloner
Imitator
Adapter